Relocating Your Business to Texas? Critical Considerations before Making the Move

Relocating a business is a complex move but something that can be very beneficial to a company. One state where they are flocking is Texas, named the “Best State for Business” by Chief Executive Magazine. What are the implications, tax-wise, for such a move?

Weaver experts and CPAs David Jackson, Partner, State and Local Taxes, and Jason Avila, Partner-in-Charge, Technology Services, discussed the topic on Weaver: Beyond the Numbers with host Tyler Kern.

Avila described why Texas is so attractive to business.

“There are several tax benefits, the cost of living is less and there’s a strong labor force by having the major metropolitan areas of Dallas, Houston and Austin. The infrastructure is great, and there’s land available to develop,” he said. “With less regulation, it’s easier for businesses to get things done here.”

While tax breaks are the most quantifiable, that doesn’t mean companies in Texas don’t pay income taxes. “There’s a misconception that, if you move to Texas, you won’t pay income taxes. You’ll still pay taxes in the other states you operate, and there’s the franchise tax, which is an income-based tax,” Jackson said. “However, there is an opportunity to lower your total tax footprint by relocating.”

Companies seeking to move to a new state often get incentives from the local level, and they aren’t just for large companies like Tesla or HP.

“There are lots of tax incentives available like abating property tax, but you need to determine if that benefits you. It wouldn’t if you don’t have large real estate assets. That’s why I counsel clients to have these discussions first before moving,” Jackson said.

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Latest

mortgage rates broker buyer
As Mortgage Rates Stay Up, Lenders and Brokers Need to Get ‘Creative’
August 7, 2022
Editor's Note: This report was initially conducted after July 14's Freddie Mac weekly average mortgage rates were released. Though the video focuses on those specific averages, the article has been Read more
Netflix advertising screen
Netflix & Microsoft Ad Partnership Will Be a ‘Windfall’ For Advertisers. Here’s Why.
August 6, 2022
Earlier this year during Netflix’s Q1 2022 post-earnings call, CEO Reed Hastings changed his tune around advertising on the streaming service. Once a key selling point as an on-demand ad-free way to Read more
The Impact of Energy Blackouts on Facility Management
August 5, 2022
They say that everything is bigger in Texas, which seems to include the demand for electricity this summer. According to the Electric Reliability Council of Texas, Electricity use on the main Texas Read more