Since the end of 2019, the United States has seen a loss of jobs across all states, with Texas being no expectation. The unemployment rate had peaked at around 12.9% when the state had lost 1.4 million jobs in the spring of 2020. However, since then, the Lone Star State has been working hard to come up with new and innovative ways to boost the economy.
The most recent statistics show that Texas is now one of only four states that have been able to fully recover from the jobs that were lost due to the covid-19 pandemic. Texas now continues to lead the U.S in an economic resurgence and has positioned itself as one of the most robust and most diverse economies in the United States. As of December 2021, the unemployment rate dropped to 5%, with factory activity continuing to expand at an above-average rate. By the close of 2021, there were over 31 new project locations announced in Texas that are expected to create $12.4 billion in capital investment and provide 4,549 new jobs.
Population Increase in Texas
One of the key reasons that the economy has been doing so well is that Texas has seen a boom in population growth. The population in Texas grew more than that of any other state, with an increase of more than 310,000 people last year. According to economic development executives, there are around 200 active corporate relocations and expansions that are underway in Texas. Austin seems to be one of the primary beneficiaries as reports indicate that 28 of the companies that were relocating created more than 9000 new jobs in 2020.
The population growth can be attributed to more individuals now recognizing the benefits that the state provides. With big corporations such as Samsung, Tesla, and Oracle setting roots in the state, there is a trove of job opportunities, in addition to cheaper housing, lower cost of living, great weather, and better quality of life.
New Businesses in Texas
The economic growth in Texas is not only due to the number of large corporations migrating into the state. In fact, a large portion of the economy of the state is from small businesses. According to the latest statistics, there are around 3.0 million small businesses in Texas; this makes up 99.8 percent of the total number of Texas businesses. Small businesses also contributed a net increase of over 129,700 jobs.
Many entrepreneurs have followed suit after noticing the business migration into Texas; instead of waiting to relocate once their business grows, they are opting to set up shop in the Lone Star State at the very outset, thus reaping the benefits immediately.
The Texas LLC formation process is relatively easy and allows entrepreneurs the flexibility that they would have with a sole proprietorship or partnership while still being recognized as a formal business entity such as a corporation. This allows business owners to receive superior asset protection without the hassle of worrying about large amounts of paperwork or the expenses attached to corporation business structures.
To form an LLC in Texas, entrepreneurs will first have to settle on a name for their business– according to the state naming guidelines. Thereafter they will have to appoint a registered agent before filing the LLC Certificate of Formation with the Texas Secretary of State to make the business official.
Final Thoughts
The State of Texas has become the business hub of the United States, with large corporations, their CEOs, as well as small business entrepreneurs taking advantage of the tax and legal benefits. The Lone Star region provides new businesses with a generous amount of support and resources at state and local levels. As a result, more people and entities are gravitating towards Texas to fulfill their business needs.
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