Five Reasons to Start Your Business in Houston

Starting a business these days almost seems like a trendy thing to do. There’s a certain culture of entrepreneurism that’s become prevalent, particularly within younger generations that have come of age in difficult job economies. Basically, people are thinking that with traditional career paths harder to come by, there may be more value in creating a company. This sort of sentiment may become even more popular amidst the economic strain brought on by the 2020 pandemic.

If you’re among the legions of people exploring the idea of launching your own business, one of the key decisions you have to make early on is where to base your operations. And we’d suggest that Houston might just be the perfect place to do it. Granted, we may be somewhat biased — but the following reasons make a strong case for the city.

1.) Texas is a Small Business Leader

In the summer of 2019, CNBC posted a survey (conducted by WalletHub in July 2019) that ranked Texas as the single best state in the U.S. for starting a new business. The survey was first based on three key elements: the “overall” business environment, resource availability, and business costs. Then, beyond these areas, it considered 26 metrics, including things like local cost of living, corporate tax rates, startups per capita, and more. With all the data under consideration, Texas came out on top (followed by Utah and Georgia).

2.) There’s No State Income Tax

The state constitution of Texas actually forbids the implementation of a personal income tax. Granted, this is made up for by a heavier sales tax than you’ll see in some other states. But it still makes for an attractive situation for a lot of young people looking to start businesses. When you’re seeking to save every penny to support your company, not having to worry about income tax can help.

3.) Texas Makes Registering A Business Simple

Registering a new business as an official LLC (Limited Liability Company) can seem daunting, particularly if you’re not the sort to take easily to paperwork. In Texas, however, this is actually a fairly easy task to accomplish. ZenBusiness documents how to form a Texas LLC in five simple steps: naming the business, choosing its registered agent, filing a Certificate of Formation with the Texas Secretary of State’s office, creating an operating agreement, and applying for an Employer ID number. Even if you’re not familiar with certain steps on that list, it’s not too difficult to figure out what to do.

4.) Houston is One of the Best Cities to Live In

The points above cover why Texas is an excellent state in which to start a business. On top of this, one reason that Houston makes for a great base of operations is that it’s simply a great place to live! Just recently, a ranking of the best American cities to live in compiled by Resonance Consultancy put Houston at 11th in the entire country. The ranking was based on a number of factors including population diversity and the prevalence of Fortune 500 companies and restaurants. It solidified what so many people in the area already believe: that this is a wonderful city to live and work in.

5.) Other Startups Have Paved the Way

Houston also has a number of successful local businesses that demonstrate the success you can have in the area. A few years ago, an Inc. list of the city’s 10 fastest-growing businesses included a floral shop (Lone Star Bloom), a cloud accounting service (AcctTwo), and a promotional product company (, to give you some idea of the range of success stories the city has produced of late. If you have a great idea, it has a chance to succeed in Houston!

Photo credit: V. Sweeten