Whether you’re starting a business in Texas or growing an existing company, the Lone Star State offers a large customer base, a skilled workforce, a competitive business environment, and a statewide network of resources for entrepreneurs.
This page is a starting point for understanding the process and finding the official agencies and organizations that can help.
Small businesses are central to the Texas economy.
Texas is home to approximately 3.5 million small businesses, representing 99.8% of businesses statewide, according to the 2026 U.S. Small Business Administration profile. These small businesses employ more than 5.1 million people, or 44.4% of Texas employees.
Texas also ranked No. 3 among WalletHub’s Best States to Start a Business in 2026 and No. 1 for business environment. This ranking is most likely because entrepreneurs benefit from the broader Texas business climate, the state’s skilled workforce, and its business ecosystems spanning technology, manufacturing, energy, life sciences, and other industries.
The Governor’s Office organizes how to start a business in Texas into seven basic steps:
Define your concept, market, financing needs, structure, and competitive advantages. The U.S. Small Business Administration offers templates to help organize the plan.
Consider customers, suppliers, workforce access, zoning, and logistics. Explore regions across Texas to compare potential markets.
Funding may come from personal capital, banks, SBA-backed lending, microloans, Community Development Financial Institutions, or private investors. The Governor’s Office Financing & Capital resources can help identify options, and our Funding a Small Business in Texas guide can help get you started.
Business registration depends on whether you operate as a sole proprietorship, partnership, LLC, corporation, or another structure. Use the Texas Secretary of State and local county resources to verify requirements.
Review federal, state, and local requirements before opening. Learn more about the Texas business tax climate and consult qualified tax professionals for company-specific guidance.
Texas does not require a general statewide business license, but specific occupations and activities may require licenses or permits. The Governor’s Business Permit Office and Texas Business Licenses & Permits Guide can help identify relevant requirements.
Businesses hiring employees should review Texas Workforce Commission guidance covering employer responsibilities, workforce programs, and hiring resources.
The Governor’s Office of Small Business Assistance page serves as a central resource for entrepreneurs and established businesses. Its Texas small business resources include Small Business Summits, webinars, an on-demand resource library, the Governor’s Small Business Handbook, licensing and permitting guidance, and the Small Business Snapshot newsletter.
A combination of both statewide programs and local incentives are designed to help your company start off on the path to success.
The Skills for Small Business Program offers financing tuition and fees for community and technical college courses. This program, run by the Texas Workforce Commission, is targeted to help current and newly hired employees of small businesses. Other helpful resources in Texas and nationwide include:
With a strong historical background in innovation, Texas continues to make strides in fields like tech, energy, life sciences and more.
With three cities (Dallas at No. 2, San Antonio at No. 7 and Temple at No. 10) on Fortune’s 2019 list of Top Ten U.S. Cities for Tech Jobs, Texas is an established leader in the tech space. Austin was ranked the No. 1 Tech Town in a 2021 CompTIA report. Meanwhile, cutting-edge research is conducted at universities like Texas Tech, University of North Texas, The University of Texas at Arlington and The University of Texas at Dallas — all of which have been recognized as Tier 1 universities for their research activity.
Texas innovation is transforming industries. Over the past decade, Texas has won more awards for a healthy business climate and job growth than all the other states combined. Innovation in Texas is a strong force propelling extraordinary economic growth.
Find out more about the many Texas business incentives for small businesses and how they can promote innovation in your enterprise.
Financing options vary by company, project, and stage of growth. Official state resources can help businesses explore lending, capital-access programs, workforce training, and other funding pathways.
