Entrepreneurs who are seeking a welcoming environment for their new business ventures, or who want to relocate for better opportunities should consider going to Texas, as it is ranked as the top state for firm relocations. Over 600,000 Californians have moved to Texas in the last decade, and the number keeps growing, as the state provides the greatest benefits for limited liability corporations (LLCs) in the entirety of the United States.

From Tesla to Oracle, many companies that had prominent headquarters in other states are shifting over to Texas, with many other small and large businesses following suit due to the strong local economy and good working and living conditions.

All of these attributes lead to Texas having the highest rates of new LLC formations according to TRUiC, a service that is dedicated to providing information and services on how to establish an LLC anywhere in the United States.

What Makes Texas Such A Good State To Start An LLC?

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The main question on everybody’s mind who is curious or planning on moving their business to Texas is: what makes Texas a better state than any other in the country?

There are many factors that make the Lone Star state one of the best places to establish your LLC.

Lower Tax Rates

Having one of the lowest tax rates in the United States, Texas allows for businesses to grow their profits. Many LLCs that earn high profits will be motivated to move to Texas in order to save money on tax expenses, which will add up in the long run.

Prime Location

Texas falls in the middle of the United States, and being close to the center ensures that both time and money are saved. Depending on the LLC, if your business puts a lot of money and time into exporting goods and services around the country, having your main headquarters in Texas can cut costs.

Better Rent and Affordability

Comparing Texas corporate rent to areas like Chicago, Los Angeles or New York is night and day, as the expenses are lower in Texas, creating a warm environment that is already hot enough with the summer climate. Entrepreneurs will also be happy to know that housing is cheaper in Texas, so it is viable to move your business and family out to this state to start a new life.

With so many great benefits, it is clear why so many businesses are relocating to Texas. TRUiC themselves have noted that the state has “the top ranking for economic growth, starting a business in Texas is a great choice for entrepreneurs”, which is notable as this website is a leading expert on all the formalities of LLC formations and operations in every state in the country

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Which Companies Have Relocated To Texas

One of the most prevalent companies to move to Texas from California is Tesla. Elon Musk, CEO of Tesla, is one of the wealthiest people alive today, and he even sees the benefits of moving to a state with better tax policies and business expenses. If a company like Tesla, which has found much success, is moving states for further business development, then it is no surprise that many small businesses are starting up all around Texas.

Alongside Tesla, Hewlett Packard, a software company that was once based in California has made the move. In fact, many notable companies that were once based in California (such as Firetrail and Oracle) are making the move to Houston, Texas. Amazon invested billions of dollars into Texas many years ago, seeing the clear pros that are associated with businesses there.

In comparison to Texas, California is much more expensive with heavy taxes, and many entrepreneurs feel restricted, not being able to release the full potential of their LLCs. it is just not financially plausible for entrepreneurs to start a new business in California or to even carry on operating in California. Texas is unabashedly pro-business and it has become a central hub for creative talent, creating a fantastic business climate.

What Does This Mean For Texas?

Texas has seen an uprising in the number of jobs that are being created there, even during the pandemic. The economy has never been healthier, and this will lead to further developments in the state and relocations to the state. A cycle of wealth and opportunity is created.

Now that many different types of companies have relocated to Texas, there is much more variety in terms of the industries that are growing there, such as the information technology industry thanks to companies like Dell. Texas is flourishing and is becoming the benchmark for many other states in America.


Texas seems to be the new sign of the American Dream, as prosperity and success could be guaranteed for your business. LLC formation in Texas is a simple process that includes naming your company, choosing a registered agent, filing formation certificates, and creating an operating agreement.

Once all of these steps are followed, you could be on your way to achieving all of your business goals that might not have been possible in other states like California. So many businesses and entrepreneurs are making the move, the time is now, as Texas is and will be in the spotlight for years to come.