A Quick Glance at Texas

Texas, whose nickname is The Lone Star State, first obtained its statehood in 1845. With a population of 26,448,193 people, Texas is the second most populated state in the United States.

If you are considering starting your new business in Texas, you might want to look into one of Texas' top three most populous cities - Houston, San Antonio or Dallas and also in the state's capital of Austin.

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Top Industry

The largest industry in the state of Texas is oil and gas extraction.

• The gross domestic product (GDP), of this industry, is roughly $127.2 billion and accounts for 7.7% of Texas' GDP.
• Oil and gas extraction also employs 0.7% of Texas' private workforce.

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Small Businesses

In the United States, the more than 600,000 plus franchised small busineeses account for 40% of all retail sales and provide jobs for some 8 million people. According to the Small Business Administration (SBA), their standard definition of what constitutes as a small business includes a maximum of 500 employees or operations with and/or up to $7 million in revenue, depending on the industry.

• There are 4.6 million small businesses, in the state, of Texas.
• Small businesses in Texas, make up 34% of the state's private workforce.

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State and Local Taxes

Listed below are the state and local taxes, for the state of Texas, and how they rank against other states in the U.S.

California has the highest state tax rate in the United States at 7.25%, but Lousinana has the highest combined tax rate, overall, at 9.98%. Delaware, Montana, New Hampshire and Oregon share the spot for lowest combined tax rates at 0%.

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Additional Information

If you need additional information about how to start a business in Texas, their official state page might be a good place to start. If you are looking to own your own established franchise in Texas, we have collected a comprehensive list of companies that are actively looking to expand in Texas, for you to explore.