Texas Ranks 3rd Best State for Business

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In a recent study conducted by CNBC, Texas ranked third in the best states to run a business, behind only Virginia and North Carolina. There are several factors that make Texas a top 3 state for business owners, whether you start here or move here.

Among the 50 states, Texas is number one in Technology and Innovation. Strong sectors in information technology and energy contribute to Texas’ high score in this category. Several tech companies such as AT&T, Dell, and Google have a “strong presence” in the state.

Texas also ranks first in Workforce. Population growth has been consistently rising in recent years, with several counties around Dallas and Houston being among the fastest growing. This is due to many people around the country moving to southern states, especially Texas. The state’s fast growing population contributes to the massive workforce Texas has.

The survey also shows that in the first quarter of 2024, Texas’ GDP grew by 2.5%. The favorable lack of state income taxes further contributes to the state's high ranking and is a common motivator for companies looking to move their business.

However, Texas did rank last in the survey's Quality of Life ranking. The Lone Star state is susceptible to severe weather, such as hurricanes from the Gulf of Mexico and intense heat in the summer. The category also takes into account healthcare and social services. Despite a strong presence of advanced medical facilities in major cities, access to health insurance is hard to come by for individuals.

Overall, Texas is a great state to start your business. But if you want your business to actually be successful, you need to do more than just have a great location. A big part of running a successful business is knowing your numbers and doing your taxes properly. For further guidance, you should get in touch with XQ CPA’s financial experts. Give us a call or book a consultation online today.

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Sources:

https://www.cnbc.com/2024/07/11/americas-top-states-for-business-full-rankings.html