As a native Californian, once I settled into a coastal California suburb with my family, I never dreamed I’d pack up and head out of state to live somewhere new. However, life has become harder in our San Diego suburb; inflated taxes, high gas prices, and an overall huge increase in the cost of living have really impacted my business and my family’s overall lifestyle. Now, despite the beaches and beauty of California, I have discovered that Texas is truly a fantastic place to be a business owner. Not only is a small town in central Texas going to be a great place to live for our young family of five, there are also just so many benefits to moving my small business there. In California, I started a company that grew from a few local clients to hundreds of national clients. I want to remain successful, and I’m headed to Texas to do just that. Read on to learn more about why I’m moving my LLC to Texas.
There are tax advantages. Let’s talk about the major advantages first: It is well known that Texas has a business-friendly tax environment. There’s no state income tax in Texas—compare 0% to the more than 9% I have been paying in California. In Texas, the corporate taxes are nonexistent; California’s corporate tax rate is almost 9%, and . As a Californian moving from Texas, I can expect to pay lower taxes in nearly every category. This can equate to significant savings, allowing my company to keep more of the profits we make each year.
LLCs have limited liability protection. In Texas, the state provides strong protections that help to shield LLC owners from personal liability for most business debts and lawsuits. Although I don’t expect to encounter any major legal issues, limited liability protection provides peace of mind to business owners like me, helping to protect personal assets.
It’s a simple process. To get set up in Texas, I’ll just need to file a Certificate of Formation, and while it’s not required, I’ll draft an Operating Agreement as well. It costs just $300 to form an LLC in Texas, and there’s no annual registration fee for LLCs in Texas. I’ll need to name my LLC in Texas, and I can file formation documents online. Processing, I’m told, should take less than a week. This helps make my business transition from my home state to my new state such a smooth process.
It’s a business-friendly state. As many Fortune 500 companies can tell you, Texas has a great reputation for being a pro-business state. Texas has fewer and more lenient regulations than a state like California. It also has a streamlined process for starting and running a business. All of this makes it so much easier and more cost-effective to operate an LLC in Texas.
Texas is a wealth of talent and resources. So many thriving industries exist in Texas, but as I’ve discovered, there is room to grow! Texas cities are growing, and the small towns are developing too. For my business, I look forward to settling into a town with access to a large pool of talented workers. In Texas, I also aim to develop a large roster of clients who value higher education.
It’s a great place to live and work. While California has been beautiful, daily life has become more of a challenge because of high costs of living and so many business regulations. There’s so much about the great state of Texas to love: its warm climate, rich history, unique culture, and endless opportunity. Whether you’re seeking to settle and set up shop in a bigger city or a small, rural town, Texas has so many options.
There’s plenty of flexibility with an LLC in Texas. Under Texas law, there is no requirement for an LLC to hold annual meetings or to keep detailed minutes like there might be with a corporation. There are also no restrictions on the number of members an LLC can have.
So much support is available. If I were moving anywhere else, I would have to do intensive online research to figure out how to move my LLC. On my own, I’d have to figure out the best towns that would be a good fit for my family and my business. However, Texas lives up to its warm, welcoming, and friendly reputation. From assistance with understanding business regulations to offering valuable resources, there is one great organization that has helped me to organize everything I need for a move to Texas. The Texas Economic Development Connection offers accessible, comprehensive information when it comes to options to moving a business to Texas. After just one phone call, the TexasEDConnection helps to gather all the necessary information to help with major decision-making. The best thing: the help that the TexasEDConnection offers is free.
Are you thinking about moving your LLC to Texas too? The Texas Economic Development Connection can help with making great business decisions and more. Reach out to them to find out more about relocating to Texas.