Besides the endless opportunities the different sectors in Texas provide for the start and growth of your business in the US, Texas also offers a great lifestyle.

Low costs of living

First of all, the employees don’t pay personal income tax to the state and there is also no corporate tax. Also the costs of living are lower in Texas compared to other states.

The mild regulations and weak unions result in lower costs to start a business in Texas. Utilities like gas, water and electricity are also relatively cheap, because Texas has his own power grid and Texas still provides his own oil and gas.

Texas is a massive state and because of this land-richness real estate is relatively cheap.

Also the strong economy, low employability rate and excellent school system, makes Texas an attractive state to move to with your family members.

Texas is wanted
Texas is hot and wanted. According to Forbes’ annual list of America’s Fastest Growing Cities 6 of the top 20 largest cities in the U.S. are in Texas. According to a report released by the Census Bureau, Texas is also home to 5 of the 11 fastest growing cities in 2016, with Austin as the #1. Hordes of people are moving in (3,15% population growth rate in 2016 and 3,28% increase in job opportunities). Also 5 of the 8 cities that added the most people in sheer numbers are also in Texas: Houston, San Antonio, Dallas, Fort Worth and Austin.

According to Chief Executive magazine, leaders favor states with fewer regulatory encumbrances and less federal or state interventions. Chief Executive asked 513 CEO’s to rank the states they are familiar with on the friendliness of their tax and regulatory regime, workforce quality and living environment (cost of living, education system and local attitude toward business). Texas has topped the list for 12 years in a row.

Reasons for attractiveness

Why is it that Texas has been able to retain its business attractiveness for such a long period? One of the reasons is the pro-growth policy decisions. The motto of the city is to keep Texas ‘the beacon of opportunities’ and business and political leaders in Texas know that they have to keep this motto going. After taking office, Gov. Abbott has continued and perhaps even intensified the business-friendly culture that was built by his predecessor, Gov. Perry. In Texas business and industry are working hand-in hand with policymakers to create an open market where business can prosper. Gov. Abbott has used the Texas Enterprise fund as a ‘deal closing fund’ to attract new jobs and investments to the state, which makes it easier for company decision-makers to choose Texas as the state to relocate their facilities. The perceived attractiveness of the lone star state is not only influenced by taxes and regulations, but also on migration between states and wise policy decisions; a lot of tax payers have changed their state of residency tot Texas in the past few years. In 2015, nearly half a million people moved to Texas. Another reason for this perceived business attractiveness is industrial diversification. Through industrial diversification, Texas has been able to overcome a decline in economic output resulting from lower oil prices and continues to court companies with its so-called ‘pro-business environment.’

Tech

Historically, Silicon Valley and Seattle have been seen as the tech meccas for the US, but over the last two decades this has changed. More and more companies that once looked at a location on either American coast as an advantage are now considering the logistical and cost advantages of locating in Texas. A good example is the North Dallas area, where a growing number of big companies are deciding to locate or relocate operations. Toyota, for example, is in the process of moving his headquarters and 4000 jobs form Torrance, California to Plano, Texas in 2017. There are more workers to be transferred from the Californian office to Texas than anticipated, because the employees found out what kind of house they can buy for the money compared with California.

Cost of living compared

The cost of living index as calculated by the Council for Community and Economic Research and published by PayScale, gives a grasp on how much the differences are. We have compared the cost of living in Austin Texas with other technical hubs like Boston, Chicago, New York City, San Francisco and Seattle. The cost of living index is based on the following categories: Groceries, Housing, Utilities, Transportations and Health Care. So for example, the overall cost of living is 45% lower in Austin, compared to Boston and 131% lower when compared to NYC.

Overall Cost of living index

Compared to …

Austin

Boston

clip_image007 45%

Chicago

clip_image008 24%

NYC

clip_image009 131%

San Francisco

clip_image010 72%

Seattle

clip_image008[1] 31%

 

.clip_image012

           
  clip_image017  
 
  clip_image018  
 
 

clip_image002[6]

 

clip_image002[8]

Whether it is groceries, housing, utilities, transportations or health care, Austin -and with Austin, Texas- gives you to most economical options to set up shop in the United States.