Why Texas is an excellent choice for your business

Texas is one of the most attractive states in the U.S. for doing business, thanks to its favorable tax environment, strong legal protections, and low bureaucratic burden.

Key Advantages

Modern Judicial Infrastructure

1. Business Judgment Rule In May 2025, Texas codified the Business Judgment Rule (SB 29) into the Texas Business Organizations Code (TBOC) — providing a strong presumption of good faith for directors and officers (including LLCs and LPs).
2. Specialized Business Court Since September 1, 2024, Texas has had a Business Court and the 15th Court of Appeals, focusing on complex commercial disputes with accelerated procedures. Jurisdiction will be further expanded in 2025 (HB 40), increasing predictability and speed of litigation.
3. Anti-takeover Rules Section 21.606 TBOC introduces special voting requirements for transactions with affiliated parties in public corporations.

Taxes and Reporting

• No state personal income tax — prohibition is enshrined in the Texas Constitution (Sec. 24-a).
• No state corporate income tax, but there is a franchise tax.
• Low franchise tax rates compared to many other states.

Investment Incentives

1. Texas Enterprise Fund (TEF) Offers cash grants to companies creating jobs and investing in the state’s economy.
2. JETI (HB 5, 2023) New program providing property tax value limitations for large industrial and IT projects.