Why incorporate in Texas?

Business Information & Rankings

• Texas is the headquarters for 45 Fortune 500 Companies and home to 14 of the 100 Fastest Growing Businesses in America. (Fortune Small Business Magazine)
• Texas ranked 4th on the Business Climate Index. (Tax Foundation, 2004)
• If Texas were its own nation, it would represent the world’s 8th largest economy.
• Texas recently surpassed California as the largest exporter in the nation.

Cost of living

Crime Rate

Texas has the 45th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Taxed. Exemption applies if inventory is held in state less than 175 days.

Corporate Income Tax
Texas and four other States (Nevada, Wyoming, South Dakota and Washington) do not levy corporate income tax.

Personal Income Tax
Texas is one of the six States that does not levy any individual income taxes.

Personal Property Tax
Texas does not have a state property tax; however it is collected on a local/county level. All real and income-producing tangible personal property not exempt by state or federal law is taxed. Personal property (including automobiles, airplanes, boats and travel trailers) that does not produce income is mostly exempt from taxation.

Texas does not tax intangible property such as stocks, bank accounts or certificates of deposit.

State Sales and Use Tax
Base Rate: 6.25%
Machinery Rate: 6.25%

There is an exemption for industrial machinery.

Unemployment Insurance
Texas’ new employers’ rate is 2.7% for 1.5 years.