Houston is considered the most populous city in the State of Texas, USA, and the fourth most populous city in the entire USA. Though Austin is the Capital City of Texas, Houston is known for being the capital of many well-known breakthroughs and achievements such as space exploration, petroleum exploration, the international energy industry, and air conditioning. This is where the National Aeronautics and Space Administration or NASA’s Johnson Space Center is found. In addition, the largest medical complex that is the Texas Medical Center is also located here. This Medical Center spearheads the advancement and innovation in medicine and life sciences.

Though it is not the capital city of Texas, Houston is a flourishing and good place for business start-ups. It has a robust economy considering that it is the 2nd largest economy in the U.S. When it comes to entrepreneurship, the business climate in Houston is friendly, and it generally supports upcoming businesses. Houston has been frequently named as the best place to start up a business.

For those interested in becoming an entrepreneur, Houston might just be the right place for you. Find out here the reasons why.

Start-up Incentives

If you plan to open a business in Houston, state-wide funding can offer incentives to support your business start-up. The Texas Enterprise Zone (TEZ) Program is one of the Economic Development Programs of Texas. This program was created to provide funding and support the job creation of those business starters located in economically-distressed places. This is a use tax refund and state sales refund program. If your business qualifies for the TEZ program, you can apply for a state sales refund and use the tax refund you have paid.

Small Business Have Access to Capital

The many benefits of starting up a business in Houston are that the government has made it an easy route for you. For small businesses that will need assistance in accessing capital, the Governor’s Office has created this Small Business Assistance (SBA).

This SBA assists business starters who need counseling and capital. They will also offer contracting expertise. This institution will also offer loans and help businesses in their training needs to optimize their business potential. During disasters and other crises, they can also provide disaster loans to ease entrepreneurs’ worries.

You can find an SBA office in Houston as well as in the other five cities in Texas. You can check out this website https://gov.texas.gov/business/page/financing-and-capital which can give you the options for avenues and platforms for equity funding, non-profit lenders, and small business grants.


Houston offers relatively affordable space rentals that are ideal for businesses or offices. One platform where you can look up cheap options for office rental in Houston is through community-sharing sites. Check out for PivotDesk. You will be led to a page where there is a list of commercial spaces for rent.

Another option that you can choose is coworking space. Houston is gaining popularity for this coworking space concept rather than renting traditional office spaces. By the term alone, you can share standard office amenities with other companies such as fax machines, photocopying machines, conference rooms, and business phones. All come at affordable prices.

No Personal Income Tax & Low Business Taxes

Texas has a very enticing business-appropriate appeal. They can attract and keep great talents and skilled workers because their workforce has no personal income tax. Businesses will not have a hard time hiring the talent they need because they are staying and not moving to another place to seek greener pastures.

In addition, the business taxes in Texas are also low. The advantage of this is that the businesses can keep their profits that make it very helpful for business starters. Also, their government offers this Zero-Tax threshold. In the case of small businesses that have annual business receipts that do not reach more than the threshold, they are not required to pay any franchise tax. The amount is $1,080,000 for the tax year 2020.

On the other hand, for larger businesses that have annual receipts of more than $1,080,000 to $10M, they are required to pay only a relatively minimal franchise tax of 0.375%.

Ease of Mobility & Transportation

The accessibility and the ease of getting to your work using mass transit are made convenient for you in Houston. There are massive options and routes for local bus and train rides.

The local METRO bus system is very reliable and affordable in Houston. The fare is only $1.25 for the bus, and you can transfer to another bus for up to 3 hours. The METRO buses sum up to more than 1,500 buses making it convenient for commuters to reach their destination faster and easier.

There is also an option for park-and-ride facilities wherein commuters can park their car and take public transportation that can help minimize the rush-hour commutes. Among these buses, there are 440 transit diesel-hybrid buses which help keep the air clean in Houston. This technology minimizes nitrogen oxide emissions by 50% and comes with significant savings in fuel use.

There is also the METRORail that is another option for commuters. This is the new and expanded light rail system that extends up to 23 miles. This paves the way to ease Houston’s traffic congestion and improves the air quality in the city.

In this line, business starters will not have to worry about the movement and mobility of their employees. They will not have to worry about being stuck in traffic, and there will be no complaints on public transportation.

Final Takeaway

Starting your own business can either be grueling or manageable. Choosing the right location will spell out the difference. The above-stated reasons define why Houston is known for being the best place to start your business. All the more that the Government of Texas itself is very supportive for small-scale business owners and medium enterprises, which adds value and impact in deciding to put up a business in Houston. From this vital information we provided you, you will understand why Houston is highly voted as an excellent and business-friendly place.

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