Starting a Business in Texas is Easier, Faster and Better than Ever
When small business owners and entrepreneurs look for a place to start and build their dream business, Texas is always a prime location. In fact, according to a recent analysis from WalletHub, Texas is ranked as the top business environment in the nation, thanks to a “low corporate tax rate, strong economies, an abundance of reliable workers, and easy access to financing and affordable real estate.”
With Texas’ booming population and employment growth, state lawmakers have been focused on crafting policies that have made the process of starting a business here easier, cheaper, and more streamlined than ever before. From cutting red tape to modernizing and simplifying how businesses interact with government entities, the 89th Texas Legislative session brought historic reforms that have made Texas the standout winner in attracting new, emerging enterprises that can quickly scale, reach new markets across the world, and create new jobs for our ever-growing talented workforce.
Among the most impactful reforms last session was the reduction of the business ‘inventory tax’ burden. The $125,000 tax exemption was formally approved by voters through the passage of Proposition 9 on the November 2025 Constitutional Amendment ballot. This was a top priority for the Governor’s Small Business Freedom Council, which TAB co-chaired with the Texas Chapter of the National Federation of Independent Business (NFIB) to develop recommendations for the elimination of rules, fees and regulations that have created unnecessary barriers to small business success.
In October, the Texas Secretary of State – the first state agency that any new business encounters when forming a new entity in Texas – announced a new, streamlined set of services for expedited business filings through Texas Express, with Secretary Jane Nelson affirming that the new tool ensures Texas will “move at the speed of business.”
As home to more than 3.5 million small businesses, Texas has a responsibility to continuously improve the experience for new and emerging enterprises and ensure regulations do not stand in the way of their success. To help navigate requirements for new and existing business owners, the Governor’s Office of Small Business Assistance and the Business Permit Office provide critical resources entrepreneurial support, education and technical assistance.
At the beginning of this year, the Business Permit Office issued a new, comprehensive Texas Business Licenses & Permits Guide with the latest regulatory requirements across every business type imaginable – from auto body shops to woodworking and everywhere in between. For new businesses, or current business owners who are launching new services, this resource is a crucial one-stop-shop for creating a ‘checklist’ on licensing, permitting, and other requirements businesses need to fulfill to get up and running quickly.
“Texas prides itself on being the best state to start and run a small business, where entrepreneurs can follow their vision and achieve the American dream. Our team remains eager to assist entrepreneurs every step of the way as they achieve their dream of a thriving small business here in Texas.”
Jarvis Brewer, Small Business Advocate, Texas Economic Development & Tourism Office
If you’re a new or existing small business owner seeking assistance in complying with requirements, we encourage you to visit the Governor’s Small Business Resource Portal, which provides step-by-step guides from planning to formation to filing the necessary tax paperwork and obtaining the proper licenses and permits to move your business forward.
For more information on starting and growing your small business in Texas, please visit or contact the Governor’s Office of Small Business Assistance here.
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