Texas is considered to be one of the best states for operating a business. The state is located next to Mexico, a major trading partner, and does not collect corporate or personal income tax. Texas also has a warm climate and a young, diverse workforce. There are several, important considerations to make when moving a business to Texas.
Register your Texas entity
You have to remove your current entity and register a new entity in Texas. You can file as a foreign business entity in Texas. If you keep your old and new entities, you’ll have to pay duplicate taxes, and the tax filings become more difficult. Another option is to liquidate your old business and merge it into the new one.
Update your company’s policies and legal documents
Your legal jurisdiction has relocated to Texas and now reflects state and local laws. Review and update every legal term, in accordance with every new business law, in your legal documents, company policies and employee handbooks.
Change your address
Receive mail at a new, forwarded business address. Make the update at the postal service along with certain government agencies like the IRS. Change your address on your website, certain products or marketing materials.
Consider the demographics
Texas is one of the most diverse states in the U.S. with demographics that are constantly changing. Overall, the local residents must find a personal need for your business or you’ll waste a lot of time, effort and optimism in moving.
Understanding the new rules in Texas
Texas is known for being lenient to businesses and property owners. There are still important business laws and a list of quality standards that every new owner must follow. Before moving, they must ensure that they are familiar with the state’s general business rules and regulations.
