If projections prove true, economic conditions in Texas will continue to improve at a time when uncertainty about the economy exists almost everywhere. Forbes notes that since June 2009, Texas has been responsible for 40 percent of U.S. job growth, enough for Forbes to rank Texas first in the nation for growth prospects. Those starting a business, therefore, should consider the role Texas can play in their future.
Howard Wial of the Brookings Institution told Forbes that Texas' prosperity can be explained by its fiscally stable government, oil and gas revenues and federal government aid. For examples of cities that stand to gain from continued prosperity, look to Austin, Dallas, San Antonio and Houston.
Group of Texas Cities Named Hotbed for Jobs
Newsweek named these cities among those that best withstood the economic downturn of the latter half of the last decade and are poised to keep growing, calling this group of cities the "No. 1 destination for job-seeking Americans" with a "strong spirit of entrepreneurism." The area is a job hotbed for people from other states trying to land employment and those with business plans and start-up capital seeking a hospitable business climate.
Traditional and Emerging Industries Thriving
Newsweek explains Texas' economic stability in terms of its pro-business policies and relatively low taxes. In addition to its traditional base of energy firms - it does not hurt to be an oil and gas-rich state in the recovering U.S. economy - Texas is home to advanced technology, manufacturing, life sciences, aerospace and defense companies. Other industries are sure to follow close behind.
Business Entity Selection
Business firms that choose to set up shop in Texas need to select the right business structure to suit their needs. According to the Texas Secretary of State, the business formation process should take into consideration issues regarding tax, liability, management, continuity, transferability of ownership interests and formality of operation. Business forms available under Texas law include:
- Sole proprietorship
- General partnership
- Corporation
- Limited Liability Company
- Limited Partnership
- Limited Liability Partnership
Over time, the law regarding business structure formation has changed and more flexible forms have been created as the need has arisen. Those forming a business or moving their existing business to Texas should consult a skilled business formation attorney to help pick the entity that will best meet their interests and business needs.
