Best Businesses to Start in Texas
What is the Texas Economy Like?
The Texas economy is a dynamic and diverse powerhouse, consistently ranking among the strongest in the United States. With a Gross State Product exceeding $2 trillion, Texas boasts an economic output that rivals that of entire nations. Energy remains a dominant sector—particularly oil and gas—but the state’s economic base is far from one-dimensional. From advanced manufacturing and aerospace to biotech, information technology, and financial services, Texas offers a fertile landscape for business growth.
Texas also benefits from a growing population, a large and educated workforce, and access to key trade corridors including international ports, border crossings, and robust rail and highway infrastructure. These assets make the Lone Star State an ideal staging ground for both regional and global commerce.
Is Texas Business Friendly?
Texas has earned a reputation as one of the most business-friendly states in the country. It offers a combination of pro-growth tax policies, minimal regulatory red tape, and a right-to-work labor environment. Notably, the state imposes no personal income tax or corporate income tax, which significantly reduces the cost of doing business.
Additionally, Texas maintains a responsive government structure that actively courts business relocation and expansion. Through initiatives like the Texas Enterprise Fund, the state provides incentives and grants that attract Fortune 500 companies and support small business development alike.
With streamlined permitting processes, a robust entrepreneurial ecosystem, and an affordable cost of living, Texas continues to be a magnet for startups, franchises, and large corporations.
How Do I Start a Business in Texas?
Launching a business in Texas involves a series of well-defined steps designed to ensure legal compliance and operational readiness.
Choose a Business Structure: Most entrepreneurs choose between sole proprietorships, LLCs, or corporations depending on liability preferences and tax considerations.
Register Your Business Name: File for an Assumed Name Certificate (DBA) with the county clerk, or reserve your entity name through the Texas Secretary of State.
Obtain an EIN: Secure an Employer Identification Number from the IRS, required for tax reporting and hiring employees.
Apply for Permits and Licenses: Depending on your industry, you may need state or local licenses. Resources like the Texas Business Licenses & Permits Guide can help identify the necessary documents.
Register for State Taxes: If selling goods or services subject to sales tax, register with the Texas Comptroller of Public Accounts.
Open a Business Bank Account: Keep finances separate and organized by opening an account in your business’s legal name.
Comply with Local Zoning Laws: Ensure your business location is zoned appropriately for your activity.
While the legal framework is relatively straightforward, engaging with local Small Business Development Centers (SBDCs) or Chambers of Commerce can provide tailored guidance and mentorship.
What Are the Most Successful Businesses in Texas?
Certain sectors have proven to be particularly lucrative within Texas’s entrepreneurial landscape. The following categories often yield the highest success rates and returns on investment:
Healthcare and Home Health Services: With an aging population and growing urban centers, demand for healthcare services—especially home health and telemedicine—is surging.
Construction and Real Estate: Rapid population growth in urban corridors fuels ongoing demand for residential and commercial development.
Food and Beverage Franchises: Texas’s diverse population and culture of dining out make it an ideal market for quick-service and specialty food concepts.
Technology Startups: Austin and Dallas, in particular, are epicenters for tech innovation, supported by incubators, accelerators, and venture capital.
Logistics and Freight: Given the state’s geographic location and infrastructure, transportation and warehousing businesses continue to thrive.
Energy and Environmental Services: From traditional oilfield services to renewable energy startups, Texas remains an energy giant adapting to the times.
Houston Economy
Houston is the fourth-largest city in the United States and a global hub for energy, particularly oil and gas. It’s home to more than 4,600 energy-related firms and the Texas Medical Center—the largest of its kind in the world. This dual strength in energy and healthcare provides a unique economic resilience.
Entrepreneurs in Houston can tap into a large labor pool, multicultural consumer base, and a strong international trade presence due to proximity to the Port of Houston. Business opportunities abound in sectors like biomedical research, logistics, and clean energy innovation. Real estate, construction, and professional services are also high-demand areas amid the region’s consistent population growth.
Dallas Economy
Dallas serves as a commercial and financial engine for the state. Its economy is driven by a mix of industries including banking, telecommunications, IT services, defense, and manufacturing. The Dallas-Fort Worth metroplex is home to a number of Fortune 500 headquarters, including AT&T, ExxonMobil, and Southwest Airlines.
Tech and finance startups find fertile ground in Dallas thanks to a well-educated talent pool, lower operating costs compared to Silicon Valley or NYC, and a growing investor network. The city’s emphasis on economic development has spurred innovation districts and co-working ecosystems that support emerging enterprises.
Additionally, Dallas offers one of the largest concentrations of corporate headquarters in the nation, creating robust B2B service opportunities for consultants, HR firms, and legal service providers.
Austin Economy
Austin is often referred to as the "Silicon Hills" due to its booming tech scene. Home to companies like Dell, Oracle, and Tesla, the city attracts engineers, developers, and entrepreneurs from across the globe. Beyond tech, Austin is also a cultural and creative hub, with thriving music, film, and design communities.
Startups here benefit from a strong support network, including organizations like Capital Factory, Techstars Austin, and the Austin Chamber of Commerce. With a young, educated population and a spirit of innovation, the city is ideal for launching SaaS products, mobile apps, wellness brands, or content-driven ventures.
Moreover, Austin’s affordability relative to other tech cities and its appeal to remote workers make it a popular headquarters for digital-first businesses and consultancies.
Texas offers a business climate like no other—diverse, scalable, and strategically positioned for long-term success. Whether your venture focuses on healthcare, logistics, tech, or services, there’s a region and a niche within Texas ready to support your growth. With a welcoming regulatory environment and an ever-expanding economy, now is an opportune time to stake your claim in the Lone Star State.