Discover the advantages of doing business in “Business Friendly States”. This article delves deep into the factors that differentiate these two states in terms of their support for businesses. Explore which state offers a more conducive environment for entrepreneurial success and the opportunities they present. If you’re looking for a business-friendly state, this comprehensive comparison will guide you in making an informed decision.
Discover the advantages of doing business in business friendly states: Texas versus California. This article delves deep into the factors that differentiate these two states in terms of their support for businesses. Explore which state offers a more conducive environment for entrepreneurial success and the opportunities they present.
Texas Governor Rick Perry recently attacked California’s business climate in a radio ad, urging Californian businesspeople to move their firms to Texas. California Governor Jerry Brown dismissed the ad, citing the prevalence of large corporations and innovative startups in California. So which state is better for businesses? It depends on how you measure it. Texas has lower corporate tax rates and a lower cost of living, but Californian businesses are more diverse and more profitable overall.
Blog examined the business climate of both states to find the answers to four main questions:
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1. Which state has more businesses?
California has more businesses overall and more businesses per capita—California boasts 90 businesses per 1,000 residents, while Texas only has 83. In fact, the figure for Texan businesses per 1,000 residents is less than the overall U.S. average.
2. Which state has more diverse business ownership?
California has more minority-owned firms and women-owned firms. 30.3% of Californias businesses are women-owned, as opposed to only 28.2% of Texan businesses—thats less than the U.S. average. 37% of Californian businesses are owned by a member of an ethnic minority group, while only 34.1% of Texan businesses are owned by a member of an ethnic minority group. However, both states are well above the U.S. average proportion of minority-owned firms.
3. Which city has better tax policies for business owners?
Texas has lower tax corporate tax rates. California has one of the highest state corporate tax rates in the nation.
4. Which states businesses account for a larger proportion of the nations GDP?
California businesses account for a larger share of the nations gross domestic product (GDP). Californias share of the GDP is almost one and a half times that of Texas.
Sources:
U.S. Department of Commerce Bureau of Economic Analysis
Thanks to Source: https://www.nerdwallet.com/article/small-business/texas-vs-california-which-better-businesses
business-friendly states
