Are you planning to relocate your business to Texas for profitable growth? If yes then you’re not alone in this as many major corporate giants and businesses have moved to Texas. Over the years, Texas has witnessed a tremendous increase in the business relocation rate from many other modern cities such as Austin, Chicago, and California. According to a recent report by leading local moving companies, around one-third of the companies prefer relocating their business to Texas because of lower tax policy. This is not the only reason for businesses moving to Texas.
Many big names such as Tesla and Hewlett Packard are moving their business operations and headquarter to Texas. But, why are they moving to Texas? What is making them choose Texas for their business relocation? Let’s take a look at these reasons in a detailed manner:
Facts and Figures: Business moving to Texas
- Recently, Elon Musk’s announced that it is going to set up its Tesla headquarters in Texas. Tesla’s Gigafactory will be spanned over 7.8 million square feet.
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- Regardless of the pandemic situation in 2021, Texas produced around 690,400 jobs in different leading sectors.
- Texas is the country’s largest and world’s 9th economy.
- Caterpillar one of the major giants of construction equipment manufacturing is moving its headquarters to Texas. The CEO of the company stated that moving to Texas will be profitable in terms of growth.
Reasons why Texas is a great choice for corporate relocation
Availability of technical minds
Over the years, Texas has become an epicenter of technical minds and talents. This could be one of the reasons for corporate relocation to Texas. In Texas, there are so many reckoned colleges and universities that are a great source of talent. With so many higher education institutions, it’s easy to get fresh and talented graduates from different streams.
Be it engineering, or management, any giant company can get knowledgeable employees for their workforce. As there’s the availability of numerous talented technical minds, businesses have started relocating to Texas. If we’re talking about talent costs, companies can save a lot as talent costs are less in Texas compared to other cities.
Affordable corporate housing
This one is surely the biggest reason. The corporate rent in Texas is almost half of what you’ll be paying in other cities in the USA such as California. According to a report, the average home value in Texas is approximately around $280,000 whereas it’s $730,000 in California. The difference is visible which makes bigger companies move to Texas.
Whether it’s about giving rent allowance to the employees or getting corporate rents, a business is surely going to save a huge amount. That’s why, Texas is a preferred name for corporate relocation over Los Angeles, Washington, and many other modern cities.
Flexible tax policies for business in Texas
Flexible tax policies will surely attract corporate giants. The reason why companies are moving to Texas is because of its lower business tax. One of the interesting things about Texas that is doesn’t have any personal tax.
For a small business, Texas is a great city to flourish. The franchise tax in Texas is something around 0.365% for businesses. When compared with many high-tax cities in the US, Texas is much more affordable for a business. This is the reason why companies get a favorable environment to flourish here.
Texas is in a prime location
Texas is close to the country’s center part which makes it easily accessible from all corners. The companies have started moving to Texas as they’ve understood the advantages of locating closer to the center of the country.
This is beneficial for business in terms of distribution of the goods. Along with this, moving the business to Texas will also reduce the time for commuting for clients, associates, and even business partners.
To sum up
According to the reports and survey, Texas is a worthwhile location for corporate relocation. Many factors contribute to the business relocation to Texas such as lower tax policy, central location, availability of talents, and low housing rents. As companies are discovering the Texas relocation benefits, the rate of corporate relocation has increased to a great extent.
