Do you want to start a business in Texas? If YES, here are 10 best cities in Texas with lots of opportunities to start a business as a foreigner.

Texas is the second largest state in the United States by area and population. Geographically located in the South Central region of the country, Texas shares borders with the U.S. states of Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the west, and the Mexican states of Chihuahua, Coahuila, Nuevo León, and Tamaulipas to the southwest, and has a coastline with the Gulf of Mexico to the southeast.

Why Start a Business in Texas?

Texas is a massive state with a population of 26.96 million (as of 2014). This estimate doesn’t include the number of visitors the state receives every year. The dense population only highlights one reason why Texas is a great place to start a business.

Texas’ support for small businesses is evident in its low business licensing fees, its lack of red tape, and an abundance of relatively cheap real estate. Few states can boast of a similar lack of regulation that lets businesses be born almost as soon as they are conceived, with only a small out-of-pocket investment.

Texas does not charge local, state, corporate or personal income tax. Taking advantage of many foreign trade zone initiatives help businesses to further reduce other types of taxes.

While Texas as a whole is a great place to start a business, but it is also filled with awesome cities where most businesses can thrive. If you want to move to Texas and you are wondering the best cities for your business, we have provided you a list of 10 cities in Texas where your business would likely become successful if planned right. You only need to research the best one for the particular business you have in mind.

10 Best Cities in Texas to Start a Business and Succeed

  1. Addison

One of the cities that have received the most hype as the best place to start a business in Texas is Addison. Entrepreneurs refer to the Dallas suburb of Addison as is its own incorporated town. This city has the second-highest median annual income that has been ranked at $50,280.

It also has the second-highest number of businesses per 100 people (over 26) and a low unemployment rate of 3.9%. The town is under 5 square miles but has over 22 hotels and more than 170 restaurants.

The community is home to Addison TreeHouse, a resource-filled co-working space for entrepreneurs founded by the town, and the Dallas Entrepreneur Center. Addison is also home to the headquarters of cosmetic company Mary Kay, plus the app development company Bottle Rocket.

Addison is located immediately north of downtown Dallas. From 2010 to 2015, Addison grew 18.59% from 13,085 to 15,518. But the population is not reflective of the business community of the town. Addison is home to many corporate offices, hotels, meeting centers, and restaurants that cater to residents from other parts of DFW. It is a known fact that Addison has more restaurants per capita than any city in the United States.

  1. Westlake

Yet another city that has been ranked as another great place to start a business in Texas is Westlake. Westlake is a town located on the north side of the Dallas/Ft Worth area. It’s a small community that has only 1,264 residents, but the city has been making waves as far as business is concerned.

Westlake’s population grew 27.29%—from 993 to 1,264—over the past 5 years. The town also scored well with its high an average annual revenue of $4,678,268 and unemployment at the low rate of 1.3%. Westlake is home to several corporate campuses, as well as many small independent businesses.

  1. San Antonio

There are many reasons why San Antonio is also a great option as a city to start a business in Texas. Many of these reasons include that San Antonio has tax abatement, freeport exemption, foreign trade zone, industrial development bonds, pollution control property, tax increment financing, and more.

Business Facilities had named San Antonio the number one City for Economic Growth Protection. The city also has a very strong performing economy compared to other cities within the United States. In late 2016, the workforce reached 1,121,449 giving San Antonio an unemployment rate of 3.7%. It is also estimated that over 25,000 students require employment every year.

There are many events and festivals, not to mention historical sites that bring many people from all over the world to San Antonio. These visitors help the community to thrive by supporting the arts, entertainment and restaurant industries. These visitors equally help businesses thrive in the city.

  1. Austin

The city of Austin has a lot going for it when it comes to starting a business. The city is mostly focused on many areas of growth that would help develop the area in the aspect of business. Their major focus in on developing small businesses, music and cultural arts.

As a result, Austin was named the number one city for small businesses by Forbes, and Kiplinger Finance Magazine listed the city as a leader in growth for the region. In fact, some quarters refer to Austin as the rockstar of small business cities. If your business idea is small, and it is focused mainly in the music and arts, you may have to start looking towards Austin to set it up.

  1. Mont Belvieu

Just north of Houston on the border of Chambers and Liberty county is the town of Mont Belvieu. It’s a small town—with only 5,193 residents—but like Spring Valley and Bellaire, it’s helped by its close proximity to the Houston metro area.

Mont Belvieu performed well as a city to start a business because of its 31.04% population growth from 2010 to 2015. That’s the highest growth rate that has been witnessed among most of the cities in Texas. Mont Belvieu also had a very high average business revenue of $2,456,763 (among its 338 businesses).

  1. Katy

Katy is doing well as one of the cities in Texas that has the most businesses. There are around 6,907 businesses in Katy, Texas, which makes it the city with the most businesses per 100 people. Katy started as a small Houston suburb, but over the years has grown into a city of its own.

With several headquarters including, Igloo and major retail centers, Katy serves many people in and around the Houston area. As for major businesses, many of the companies in and around the city deal with energy. The Katy Area Economic Development council helps to support and build economic growth for the community. This organization helps new and established businesses to make the most out of Katy’s resources.

Some of these resources that have been provided to boost small businesses in Katy include; How and where to find business property, Training centers for new and current employees, How to expand current business to grow in other cities and areas of the state. The Katy Area Economic Development Council supports business growth in this area. Katy is also close to the Houston Energy Corridor, a district packed with energy companies.

  1. McAllen

This Texas city is a great location for international trade and distribution. McAllen has seen a 2.4% increase in job growth with a projected annual job growth of 2.5%. More people are employed and more businesses are thriving in McAllen. The city sees itself as the major business hub within the Rio Grande Valley.

According to new employment numbers from the U.S. Bureau of Labor Statistics, the McAllen-Mission-Edinburg area had around 7,000 more employed people within the last 12-month period. According to the data, that is the strongest employment numbers since the 2014-2015 fiscal year.

McAllen was ranked number 10 out of 100 cities in the United States, by personal finance website Magnify Money, for having some the most favorable economic conditions for business growth, employment and housing.

Due to the fact that many Texans head north every winter, McAllen’s small business community is growing in leaps and bounds. McAllen’s Chamber of Commerce provides several programs to help smaller businesses establish themselves. They also provide help to startups require financial assistance.

  1. Temple

Temple, with nearly 68,000 residents, is the largest city by population in the city of Texas. It’s tied with Katy for the second-lowest unemployment rate in the state. Temple also has the third-highest number of businesses, at over 3,900.

Located in central Texas, the town is nearly 70 miles north of Austin and 125 miles south of Dallas. Several major company headquarters are located here, including Wilsonart Americas, a company that produces countertops and walls, and McLane, a supply chain services company.

Temple is 30 miles from Fort Hood, so members of the military also help support the town’s economy. Temple has an active business community that includes small businesses, mid-sized businesses and large businesses.

  1. Webster

Webster is less than 25 miles from downtown Houston, but it has a strong economy of its own almost as an independent city. The city has the highest percentage of businesses with paid employees at 53%, plus a low median monthly housing cost of $973.

Only a few miles from the NASA Johnson Space Center, the town is key to the aerospace industry and is a popular place for NASA employees to live. Another growth industry in Webster is the medical field — the Clear Lake Regional Medical Center, which opened in the 1970s, and the Bay Area Regional Medical Center, which opened in 2014, have led some to call the city Texas’ “medical center of the south”.

  1. West Lake Hills

Yet another favorable city to start a business in Texas is West Lake Hill. Located on the south shore of the Colorado River—West Lake Hills offers beautiful views of Austin, highly-ranked schools, and quick access to downtown. Over the past few years, the population has grown by only 7.28%—but economically the town has prospered because of the high-tech industry’s growth in Austin.

West Lake Hills scored highly with its high ratio of businesses (1,400) to population (3,317). That’s nearly 1 business for every 2 people. It also scored well with its percentage of paid employees. In fact, 33.43% of businesses in West Lake Hills have paid employees.

Ejike Cynthia