Go Big – Go Texas!
Why the Lone Star State is a Great Place for International Entrepreneurs
Texas is the biggest state in the U.S. and one of the best places for you to do business as an international entrepreneur. It’s home to seven of the fastest growing cities in the United States, according to figures released in 2018 by the U.S. National Census Bureau, and is enjoying a huge rise in relocations from other U.S. states.
When it comes to international business this trend is reflected in the numbers. 18.3% of Texas’s business owners were not born as citizens of the United States, higher than the national average. And, Texas as a state is well-known for its great quality of life. Property is cheaper than elsewhere in the country (around 40% less, with a median home value of $190,400), and rents come in at a very reasonable median of $1,520 per month.
Texas has a $1.6 Trillion GDP – which makes it second only to California in the entire nation. Since the economic crisis of 2008, Texas has enjoyed a remarkably speedy and robust recovery.
These are just a few of the factors that have led to claims that Texas is the best state in the U.S. to do business in. In fact, Texas is such a great place to locate your business that it was ranked as America’s top state to do business in by CNBC in 2018. That’s the fourth time it’s claimed the top spot in only twelve years of this annual study.
Still not convinced? Here are the top five reasons why Texas is great for international entrepreneurs.
On This Page
- #1 –An Economic Powerhouse
- #2 A Vibrant jobs Market
- #3 – The Best for Entrepreneurs
- #4 Texas Rules for International Trade & Investment
- #5 – A Vibrant Expat Community and Entrepreneurial Spirit
- Why we Love Texas
- Frequently asked questions (FAQs) about taxes, company formaition, and residency in the U.S.
- Get advice on taxation, company formation, and residency in the U.S.
As might be expected from a state that has been ranked No.1 for business in the U.S., Texas has a booming economy. In fact, if Texas were a nation, it would rank as the 10th largest economy in the world based on GDP – in front of Australia, Russia, Mexico, and South Korea, amongst others.
Texas is home to six of America’s biggest cities, and areas such as Fort Worth, Houston, Dallas, San Antonio, and Austin attract plenty of students and workers. The state as a whole has a relatively low cost of living, with no income state tax to pay and lower real estate prices – meaning that wages go much further; the local economies get a boost from sales tax.
In the first quarter of 2018, Texas ranked 6th for substantial growth, and industries such as mining, quarrying, and oil and gas extraction played a role in growth – standing at 2.9% of Texas’ GDP. There have also been gains in tech, science and professional services, as well as transport, real estate, and goods manufacturing.
In 2017 alone Texas added over 350,000 jobs to the U.S. jobs market. This number accounts for one in seven of jobs created in the last year in the whole of the United States. It has over 13 million workers – which make up America’s second largest civilian workforce. By the end of 2017, Texas had enjoyed 90 straight months of job growth, and the unemployment rate was 3.9% – setting a record for the lowest unemployment rate in four decades.
Some of the major employers include huge companies such as AT&T, ExxonMobile and Dell. Companies such as Shell Deepwater Development, Lockheed Martin Aeronautics Company, and NASA’s Johnson Space Center are major employers.
Texas is home to over 5000 life sciences businesses, including the world’s largest medical center – The TMC (Texas Medical Center), which has over 106,000 employees and has over $3 billion of construction projects currently underway.
Texas is also home to 48 Fortune 500 companies, and more than 1,400 foreign companies (such as Toyota, Siemens and BAE Systems), as well as over 2.4 million small businesses.
Texas has plenty to offer for the international entrepreneur. Alongside cities such as Austin which is one of the hottest start-up locations in the nation, centers such as Houston, Dallas, and San Antonio have huge start-up scenes.
In 2017, the Kauffman Index listed Houston as one of the top metropolitan areas for start-ups. Their study indicated that there were 96 start-ups for every 1000 firms in Houston. In Dallas and Fort-Worth, there is an evolving and constantly growing entrepreneurial scene. Dallas is home to the Dallas Entrepreneur Center, a non-profit company that aims to drive innovation and economic impact by helping entrepreneurs start and build their businesses.
Texas earned an “A+” from Thumbtack (A service company that links businesses to consumers) when it came to being small-business friendly. The high score was down to Texas’ encouragement of business-ownership via low taxes and less burdensome regulations than many other states. Overall, Texas is one of the top ten states in America for low tax burden.
Texas is a great place for international trade and investment. It is the nation’s number one exporter and has held that title for 16 years. During 2017, Texas exported $264 billion in goods to countries all over the world. Canada, China, Mexico, Brazil, and Korea are its top trading partners.
One of the reasons for Texas’ incredible international trade is its unique combination of benefits such as its strategic location, having the largest road and rail infrastructure in the U.S., a large international banking center, a multilingual workforce that’s twice the national average, and the most U.S. ports of entry. In addition, Texas has a Consular Corps representing 90 nations.
This international flavor is perfect for entrepreneurs looking to expand into the U.S. A key factor in the success of international entrepreneurs in Texas is that its export trade is largely driven by smaller businesses. More than 90% of all exporters in Texas are small businesses. One way the government in Texas supports small businesses is by running centers in areas such as Dallas/Fort Worth, Houston, Austin, El Paso, San Antonio, and South Texas called the Texas Exports Assistance Centers. These centers help local firms to realize their export potential by providing support, counseling and advice, international contacts, advocacy services and information on international markets.
A huge range of international entrepreneurs chose to make their home in Texas, not least because of the vibrant expat communities, and the high regard residents have for entrepreneurs.
Texans tend to be friendly and charming, and are known in the entrepreneurial community for being supportive of one another. Club E network, a website that aims to bring entrepreneurs together, has chapters in centers in Texas, and there are numerous other initiatives aimed at helping start-ups, such as Launch SA (in San Antonio) and Startup Texas – a community that aims to connect entrepreneurs across the state.
Texas has a great combination of city living and country lifestyle, with more than 90 state parks, 624 miles of coastline and more than 70 working ranches. It’s one of the most diverse states in the U.S. with more than 160 languages spoken across the state. It’s also one of only four “minority-majority” states, where the majority of the population is other than non-Hispanic white.
Texas is also a great choice for families because of its great cost of living, and excellent educational facilities. It has over 37 public universities and upper-division centers with 6 being state university system. Four business schools and several universities rank amongst the best in the world according to U.S. News & World Report.
Of course we are slightly biased: Mount Bonnell Advisors are based in Austin and our firm is named after a famous Austin landmark. We think the world of Texas and Austin and have a strong sense of local identity. We are proud to be truly Texan!
And, more importantly, there is a strong personal connection to the area: Sebastian, our CEO, lived in Central Texas from 2011 to 2017 on/off. His family owned a ranch close to Austin and Sebastian has felt very much at home there ever since (and secretly hopes to live on a Texas ranch again some day!) Texas was where he found his American Dream (or maybe it found him!)
For Sebastian and all of us Mount Bonnell Advisors, Central Texas is the best place in the U.S. to start up a business. We deeply care about the people, the country, and the heritage of Central Texas and Austin.
To read more about Sebastian’s Texas adventure, check out this page.
Starting a business in the U.S. can be both exhilarating and exasperating. There is much to know and even more to learn, and the pace of the information coming at you can be overwhelming.
That’s where Mount Bonnell Advisors come in.
Would you like to live your very own American Dream? At Mount Bonnell, we can guide you through the labyrinth of regulation and red tape and out into the blue skies of a dream come true – the dream of living and working in America.
Whether it’s technical issues around tax or residency, or strategic ones involving business formation and growth, the experienced team at Mount Bonnell Advisors are here to help.
So make that dream a reality by booking a consultation today with Mount Bonnell Advisors. Let the adventure commence!