CNBC 2025 · #2 of 50
Texas
Very favourableRank: #2 of 50
Year-over-year movement
Category breakdown
All 10 CNBC categories — score out of category max, rank among 50 states.
CNBC methodology — 10 categories, 2,500 points max
Founder Snapshot
Lite operational context for Texas — what to know before operating here. Sourced public facts, separate from CNBC scores.
Tax posture
Texas has no state personal income tax. Most entities owe franchise tax if total revenue exceeds the no-tax-due threshold ($2.47M for 2025 reports); margins tax applies above that.
Business registration
Register corporations, LLCs, and partnerships with the Texas Secretary of State.
Source: Texas Secretary of State
Compliance calendar
Franchise tax reports are due May 15 annually (with extension options); public information reports may accompany zero-tax filings.
Multi-state heads-up
If you operate outside Texas or hire remotely — informational, not legal advice.
Remote sales & economic nexus
Remote sellers must collect Texas sales tax once economic nexus thresholds are exceeded.
Remote employees & payroll
Employers with Texas workers register for unemployment tax; no state income tax withholding.
Also applies across state lines
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If you are incorporated elsewhere but transact business here, you may need to foreign-qualify with the Secretary of State.
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Multi-state operations often trigger registration, withholding, or nexus rules — confirm with official state agencies.
Source: IRS — State government websites
Regulatory Pulse
Recent regulatory changes in Texas — sourced public updates for founders operating here.
Texas business courts for complex commercial cases
Dedicated business court divisions handle large commercial disputes with specialized judges in major counties.
Texas Data Privacy and Security Act (TDPSA)
Texas privacy law applies to many businesses without revenue thresholds; requires privacy notices, opt-outs, and data protection assessments.
Source: Texas Attorney General
Texas franchise tax no-tax-due threshold
Entities below the annualized total revenue threshold may file a no-tax-due report instead of owing franchise tax.
Texas Identity Theft Enforcement and Protection Act updates
Businesses must notify Texas residents of breaches of sensitive personal information and report large breaches to the AG.
Source: Texas Attorney General
Texas Capture or Use of Biometric Identifier Act (CUBI)
Requires informed consent before capturing biometric identifiers and limits retention and disclosure.
Source: Texas Legislature — Business & Commerce Code Ch. 503