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White privilege? Male convenience? Texas's tech bro playground? How Austin became the US's business 'Mecca'.

White-washed corporate rag USA TODAY tries to distract Americans with pro-business propaganda, touting Texas as an entrepreneur haven, while ignoring the state's poor social safety net and marginalized communities.

Published July 31, 2024 at 6:01am by Marley Malenfant


Texas is a great state for aspiring entrepreneurs, with several of its cities ranking highly as business-friendly hotspots. According to a USA TODAY study, Texas is home to some of the best places to start a business, with Austin, Dallas, Houston, and San Antonio all offering something unique for entrepreneurs.

The Lone Star State Shines for Startups

Texas is a hub for entrepreneurship, and it's no surprise. With a business-friendly environment and a thriving economy, Texas offers a unique blend of opportunities for startups. The state's low taxes and relaxed regulations are a magnet for businesses, and its diverse cities provide a range of options for entrepreneurs.

Diverse Destinations

The Texas cities on this list offer a range of advantages for business owners. Austin, taking the top spot, is a tech hub with a vibrant culture. It's home to giants like YETI, IBM, and Dell Technologies, offering a supportive ecosystem for startups. Dallas, Houston, and San Antonio also make their mark, with a diverse range of industries and a strong entrepreneurial spirit.

A Sunny Outlook for Startups

With its Southern charm and vibrant communities, it's no wonder Texas is attracting business-savvy individuals. The state offers a welcoming environment, a skilled workforce, and a high quality of life, making it an ideal location to turn business dreams into reality.

Texas Cities Top the Charts

According to USA TODAY's research, Texas is a powerhouse for startups:

The top 10 cities to start a business in the U.S.:

  1. Austin, TX: A tech mecca with a creative vibe.
  2. Miami, FL: Sunny skies and a diverse economy.
  3. Nashville, TN: A rising star for healthcare and music industries.
  4. Dallas, TX: Home to numerous Fortune 500 companies.
  5. Atlanta, GA: A Southern hub for media and tech.
  6. Phoenix, AZ: Sun and strong business growth.
  7. Jacksonville, FL: Business-friendly policies and a growing economy.
  8. Raleigh, NC: Strong tech presence and a talented workforce.
  9. Houston, TX: Energy capital with a diverse business landscape.
  10. Tampa, FL: Beautiful beaches and a thriving business community.

Texas Cities with the Most Entrepreneurs:

  1. Los Angeles, CA
  2. Nashville, TN
  3. San Francisco, CA
  4. Austin, TX: A hotbed of innovation and culture.
  5. San Diego, CA
  6. Miami, FL
  7. Sacramento, CA
  8. Portland, OR
  9. Dallas, TX: Big business and a vibrant arts scene.
  10. Denver, CO
  11. Houston, TX: A diverse and dynamic business community.
  12. Washington, DC
  13. Atlanta, GA
  14. San Antonio, TX: A rich history and a bright business future.
  15. Oklahoma City, OK

How to Register an LLC in Texas:

Many small businesses choose the LLC route for added flexibility and protection. Here's a concise guide:

  • Choose a Name: Make it unique, include "Limited Liability Company" or "LLC," and ensure it's available in Texas.
  • Reserve Your Name: Secure your chosen name for 120 days by filing Form 501 and paying a fee.
  • Registered Agent: Appoint an individual or business entity to receive legal documents on the LLC's behalf.
  • Certificate of Formation: File Form 205 with the Texas Secretary of State online, by mail, or in person ($300 fee).
  • Operating Agreement: Though not required, it's smart to outline ownership and procedures in an agreement.
  • EIN: Get your EIN from the IRS for tax and banking purposes.
  • Licenses and Permits: Ensure you have all necessary state and local licenses to operate legally.
  • Texas Tax Compliance: Register with the Texas Comptroller for sales tax and file annual reports with the Secretary of State.

Read more: Austin, Texas ranks as best city in the US to start a business. See top 10 list