Relocating Your Business to Texas: A Step-by-Step Guide

Businesses across the U.S. are relocating to Texas at an unprecedented rate. With no corporate or personal income tax, pro-business regulations, and a booming economy, Texas has become the top destination for corporate relocations and business expansion.

The numbers speak for themselves:

• Over 314 corporate headquarters have moved to Texas since 2015.
• Texas has the fastest-growing GDP in the U.S., reaching $2.7 trillion, making it the 8th largest economy in the world.
• More than 1,000 people move to Texas every day, drawn by economic opportunity and a low cost of living.

Whether you’re moving a small business to Texas or relocating a large corporation, understanding the process is essential. Below, we outline incentives, legal steps, and relocation strategies to help you transition smoothly.

Business Incentives in Texas

One of the biggest advantages of doing business in Texas is the variety of tax breaks, grants, and financial incentives available to businesses of all sizes.

Key Business Incentives:

• No Personal or Corporate Income Tax – Maximizing business profitability and employee earnings.
• Texas Enterprise Fund (TEF) – Performance-based financial incentives for companies that create jobs and invest in Texas.
• Texas Capital Fund – Grants for real estate and infrastructure development, particularly for rural businesses.
• R&D Tax Credits – A significant incentive for companies investing in research and innovation.
• Manufacturing Sales Tax Exemptions – Tax breaks on machinery, equipment, and certain raw materials.
• Renewable Energy Incentives – Tax benefits and funding programs for businesses in wind, solar, and other sustainable energy sectors.
• Local Incentives – Many Texas regions for business offer additional city- and county-level incentives, such as tax abatements and infrastructure grants.

How to Relocate Your Business to Texas

The process of moving a business to Texas varies based on your business structure. Below are the steps for sole proprietorships, LLCs, and corporations.

Moving a Sole Proprietorship

• Deregister Your Business in the Current State (if required).
• Cancel or Transfer Business Licenses – Check local Texas requirements for any necessary licenses.
• Update IRS Business Address – Notify the IRS of your move so that tax records reflect the new state.
• Apply for a DBA (if needed) – If your business operates under a different name, register a “Doing Business As” (DBA) in Texas.
• Open a Texas-Based Business Bank Account – Allowing for smooth financial transactions in your new location.

Moving a Limited Liability Company (LLC) or Corporation

LLCs and corporations have several options when relocating to Texas:

1. Dissolve and Reestablish in Texas – Close the business in the previous state and register a new LLC or corporation in Texas.
2. Register as a Foreign Entity – Keep your existing business structure but register it as a “foreign LLC” or “foreign corporation” in Texas.
3. Convert or Merge the Business – If allowed by your home state, you may convert your existing entity into a Texas-based filing entity or merge it with a new Texas entity.

Steps for Registering in Texas:

• Register with the Texas Secretary of State.
• Obtain a Texas Taxpayer ID from the Texas Comptroller’s Office.
• Apply for Business Licenses & Permits based on industry and local regulations.
• Set Up Payroll & Hiring Compliance to align with Texas employment laws.

Tips for Relocating a Business to Texas

Moving your business to Texas is more than just a change of address—it’s an opportunity to tap into a thriving economy, access new markets, and take advantage of a business-friendly environment. For a smooth transition, consider these key steps before, during, and after your move.

Before You Move

Relocating a business requires careful planning and research. Texas offers a variety of business environments, and selecting the right location depends on your industry and operational needs. For example:

• Austin is known for its thriving tech and startup ecosystem, attracting entrepreneurs and innovation-driven businesses.
• Houston stands out in energy, healthcare, and aerospace, with strong infrastructure supporting these industries.
• Dallas-Fort Worth serves as a major center for corporate headquarters, finance, and logistics.

Beyond location, explore local business incentives, as many Texas cities and counties offer tax breaks, grants, and workforce development programs to support growing businesses.

Legal & Administrative Steps

Once you’ve decided on a location, verify that your business is properly registered in Texas. This includes filing with the Texas Secretary of State, obtaining any required business licenses and permits, and applying for a Texas Taxpayer ID with the Texas Comptroller’s Office.

Site Selection & Real Estate

Finding the right commercial property is a critical step in the relocation process. Consider factors such as workforce availability, tax incentives, and zoning regulations when selecting a location.

Commercial real estate costs vary across Texas, so researching property taxes and zoning laws can help you make an informed decision before signing a lease or purchasing property.

Hiring & Workforce Transition

If you plan to hire or relocate employees, Texas offers extensive resources to support workforce development. The Texas Workforce Commission provides hiring assistance, training programs, and recruitment tools. If existing employees are making the move with you, offering relocation support can help with retention and create a smooth transition for your team.

Marketing & Customer Transition

Updating your business information is key to maintaining visibility and credibility in your new location. Your Google My Business profile, business listings, and website should all reflect your Texas address.

Additionally, building connections with local chambers of commerce and business associations can help you integrate into the business community, attract new customers, and establish valuable networking opportunities.

Why Move Your Business to Texas?

There are many reasons why Texas is best for business. The Texas business climate offers unparalleled advantages:

• Thriving Economy – Texas’ $2.7 trillion GDP outpaces most countries, providing long-term business stability.
• Pro-Business Tax Climate – No corporate or personal income tax, plus state incentives that support business growth.
• Strategic Location & Infrastructure – The #1 exporting state in the U.S., featuring 34 free trade zones, major seaports, and a global transportation network.
• Workforce Advantage – A 5 million-strong labor force, with top talent in tech, manufacturing, energy, and biotech.
• Lower Cost of Living & Business Operations – Affordable commercial real estate and lower labor costs compared to coastal states.

Favorable tax laws, state incentives, low cost of living, excellent infrastructure, and a talented workforce make Texas an attractive location for reaching your business potential.

Texas continues to be the nation’s top destination for business relocation and expansion. Whether you’re moving a startup or a corporate headquarters, TxEDC has the resources and tools to help you find the right location in Texas for your business.