Why More Corporations Are Moving to Texas
Tesla made the news in December 2020 when it announced it would be moving its headquarters from California to Texas. Just a few months before that, Amazon expanded its tech hub in Dallas with 600 new jobs and announced plans for additional regional centers. Several other corporations and companies have followed suit.
What’s going on? Why are some of the biggest companies in the world suddenly calling Texas their new home? Let’s take a look at some of the most popular reasons for having a big business in Texas.
More Affordability
Taxes are one of the biggest reasons to move from a state like California to Texas. Not only does Texas have no income tax, there are fewer taxes and lower tax rates in general. The result is a lower cost of living with lower housing costs, which is ideal for corporation employees. But employers benefit financially from a move like this as well, seeing the difference in the bottom line and profits after fewer taxes are taken out.
Fewer Restrictions
Overall, there are fewer restrictions and regulations for corporations in Texas that cut into margins. For example, the minimum wage is much lower in Texas than California. Another example is that companies with 100-plus employees in California must provide a report with pay data to ensure minority pay quotas are attained. These are just a couple of examples; review this article from the North Bay Business Journal for more in-depth information about all of the regulations that corporations in California have to address.
Central Location
Unlike New York and California, Texas is centrally located in the United States. With its convenient location and access to international airports, Texas is ideal for corporation executives and salespeople who must travel a lot. With a central location, corporations save time, money and other inconveniences associated with extra travel.
Space to Expand
Finally, there’s simply more room in Texas. California is the most populated state in the nation and its major cities have gotten densely populated with residences and businesses, leaving little room for expansion and forcing many corporate leaders to rethink their strategy. Moving to Texas is a good solution, as there are plenty of areas to expand business while retaining access to major metropolitan areas.
If you’re considering a commercial relocation for your business, contact IMS Relocation today for a no-obligation quote.