If you are contemplating starting a business in Texas, Dallas would be a great place. Recent studies show that Dallas is among the top big cities for small businesses to thrive. The Dallas Office of Economic Development has also indicated that almost 80% of companies in Dallas are small businesses.
Dallas is the fourth largest metro area in the USA, with more than 7.4 million people. But why is Dallas an ideal city for business owners to start a business? Below are ten significant reasons Dallas is one of the best cities to start a business.
One of the features that make Dallas an attractive place for starting a business is its lack of individual state income tax. Living in a major city can be expensive, especially when tax is factored in. However, this is not the case for Dallas.
The state and the local state income tax rates are 0%, while the average property tax rate is 2.17%. According to GoBankingRates, Texas is the 15th most tax-friendly state out of the 50 states.
GoBankingRates used Tax Foundation’s Business Tax Climate Index to rank based on factors like individual income tax, corporate tax, sales tax, unemployment insurance tax, and property tax. With no local and state income tax, most entrepreneurs get to enjoy greater profitability.
#2 Multiple Economic Opportunities
Over the years, the Dallas economy has been thriving and has experienced tremendous growth. It offers excellent opportunities for small businesses, which drives most entrepreneurs. The city is known for its increased job rate growth, with over 500 million jobs added to the job market between July 2013 and July 2018.
There has been an increase in the rate of startup growth, which is a metric used to measure the average employment growth that startups experience when in operation for the first five years. In 2016 alone, a 56.3% rate of startup growth was recorded, increasing to 77.4% in 2017.
It is also worth noting that Dallas has a sizable tech industry and the most significant tech-related employees in the South. One in every three high-tech jobs in Texas is from the Dallas-Fort Worth area.
With so many job opportunities to offer, it is not surprising to know Dallas is among the top U.S. cities attracting new talent. This is also true, considering it is tax-friendly and adds thousands of residents every year. What’s more, Dallas boasts of 15 major universities that provide a steady pool of talent.
#4 Growing Population
Year-over-year, Dallas has experienced population growth. In 2018, the Dallas-Fort Worth area topped the list for the fastest-growing metro in the USA, with a population increase of 1.8% annually. Between 2010 and 2016, it is noted that Dallas had the most significant population growth compared to any other city in the nation.
According to Bloomberg, this metropolitan area has experienced a high rate of domestic migration. In 2017, it added about 59,000 domestic movers, which is over 246 residents per day.
#5 Multiple Fortune 500 Headquarters
As Dallas continues to experience growth and expansion of local companies, it has attracted Fortune and Global 500 headquarters. It has 22 Fortune 500 companies and 43 Fortune 1000 companies. These Fortune companies are located in the city center and the more expansive Dallas-Fort Worth areas, including North Dallas, Irving, Grapevine, and Southlake.
In 2019 alone, many companies relocated from the San Francisco Bay Area to the Dallas-Fort Worth area. With the increase of Fortune 1000 companies, the Dallas economy has dramatically grown.
#6 Tremendous Global Impact
Unlike most cities, Dallas is committed to developing businesses with a national and global impact. It has a fantastic blend of resources and infrastructure that businesses could take advantage of to reach the broader market around the globe.
Other than its diverse workforce, Dallas is known for its excellent infrastructures like runways and interstate airports that connect it to the world. For instance, the Dallas-Fort Worth airport is the 4th busiest airport globally, and the Love Field airport ships millions of passengers and cargo each year.
This exceptional infrastructure helps with supply chain logistics so that businesses can conduct operations seamlessly. Multiple Fortune 500 headquarters can help businesses have a global impact.
#7 A High GDP
The diversity in the Dallas economy has contributed significantly to its combined GDP of $535billion. This contributes to about one-third of the entire $1.6 trillion Texas economy. A lot of activity occurs in various industries, including finance, healthcare, engineering, law, and architecture.
The high GDP is also contributed by its position in the e-commerce shipping industry. Dallas-Fort Worth has the leading container ports in the U.S.
#8 Cheap and Attractive Real Estate Market
Dallas has an appealing real estate market thanks to the no-state income tax and economic and population growth. This makes it an attractive place for both commercial and residential developers. According to a 2019 report by PricewaterhouseCoopers and the Urban Land Institute, Dallas is the top market for real estate prospects. Employers can find an affordable talent pool in this market.
#9 Helpful Business Community
When you launch a business in Dallas, you don’t have to go through the journey all by yourself. Dallas has a helpful business community that offers support for growing businesses. The community is willing and ready to help startups and small businesses achieve success in the Dallas market. Besides, small businesses can secure funding to help them establish their business once they fulfill specific requirements.
#10 Great Quality of Life
Business people find Dallas a great place to work because of its incredible quality of life. Dallas is equipped with excellent infrastructure and facilities that open business opportunities and allow business owners and employees to enjoy life.
It is a conference hub and has a lot of convention space and cultural attractions that attract visitors all year round. Of source, this means some businesses can significantly benefit from the visitors that come to the city.
Dallas has so much to offer small and large business owners who want to succeed and expand their operations. With no state income tax, low unemployment rates, diversity in industries, a high GDP, and a top contender for talent attraction, there is no denying that Dallas is an incredibly great place to do business.