How to start a business in Texas: 5 tips to set yourself up for success

Is Texas your next big opportunity? You’re probably thinking of sizzling fajitas, rugged cowboys, or the sweet sound of Willie Nelson strumming his guitar. Well, Texas still has all of that, but it’s also the world’s eighth largest economy and soon-to-be home to its own stock exchange. As we say here, it ain’t bragging if it’s true. But jumping into a new market can feel overwhelming. The European American Chamber of Commerce (EACC) Texas, a partner of Enterprise Europe Network, is here to help your business succeed. Keep reading for 5 tips on how to make the most of what Texas has to offer.

Texas: Go big or go home 

If you’re thinking about expanding your business to the U.S., Texas should be at the top of your list. With a business-friendly environment and no state income tax, the Lone Star State is a great place for entrepreneurs. Its central location gives easy access to both U.S. coasts and international markets in the Americas, making it an ideal spot for companies with global plans.

Texas has long been known for its oil and energy industries, but it’s now a leader in tech, health, aerospace, and advanced manufacturing too. Big names like Dell, Tesla, Oracle, and Meta have set up shop here, drawing in top talent and investment. The state is also a hotbed for startups, with entrepreneurs innovating in areas like healthcare, energy, and education.

A big part of this success lies in the Texas Triangle, which stretches across Dallas, Austin/San Antonio, and Houston. This region is quickly becoming a major hub for people and businesses. In fact, by 2100, these cities are expected to outgrow New York, Los Angeles, and Chicago – all within one state. 

Take Dallas-Fort Worth, for example. Already the fourth-largest metro area in the U.S., it’s on track to surpass Chicago soon. Dallas is known for its diverse economy, which spans tech, real estate, and finance. It’s also home to “Y’all Street,” the nation’s second-largest financial center. Add the Texas Stock Exchange and a world-class transportation network (including the world’s third-busiest airport) and you’ve got a city built for business.

Austin, or “Silicon Hills”, boasts over 5,500 startups and one of the highest startup densities in the country. Entrepreneurs here benefit from a strong network of accelerators, incubators, and coworking spaces. With its high quality of life and tax breaks, it’s no surprise Austin is a top pick for launching and growing a business.

And then there’s Houston, which leads the way in energy, life sciences, and aerospace. Known as the “Energy Capital of the World” and “Space City”, Houston is driving innovation in industries that shoot for the stars – literally. On top of that, Houston offers lower costs of living than most big cities, making it a smart choice for entrepreneurs looking to scale without breaking the bank.

But entering a new market can feel intimidating. That’s where the EACC Texas comes in. We’re a non-profit organization that connects European and American businesses to ramp up trade and investment between Texas and Europe. We’ve got the resources, expert advice, and a whole network of people to help you grow your business and make that Texas leap smoother.

Ready to roll up your sleeves? Here are 5 tips to help you put your best foot forward in the Texas market.

5 tips to make the most of Texas’s opportunities

1. Research the market

Before you start a business in Texas, get to know the lay of the land. The U.S. isn’t a one-size-fits-all market—each state has different regulations, economies, and ways of doing business. Texas stands out not just for its size but for its unique mix of industries and customers. Who are the main players in your field? How fierce is the competition? What do Texans care about as customers? The better you understand the market, the better you can position your product or service.

You’ll also need to look into Texas regulations, taxes, and employment laws. If you’re importing goods, make sure you understand the rules around cross-border trade, U.S. customs, and export controls. Also check out industry-specific opportunities, like tax breaks for renewable energy or health regulations for food businesses. 

Make sure you don’t overlook Texas’s cultural and regional differences – what works in one city might not fly in another. A relaxed, outdoor networking event with live music and local food vendors might be a hit in Austin, where the culture is casual and community-driven. In contrast, a structured executive roundtable at a private club could be more effective in Houston, where industries like energy and healthcare favour more formal business settings. Paying attention to local nuances will help you build stronger connections with your customers and partners.

When it comes to entering the U.S. market, the EACC Texas is here to help with hands-on research. We start by having you fill out a quick  questionnaire, where you’ll share details about your business, goals, and industry. With this information, we create a custom plan just for you. We then dive into the local market, analyzing data on your competition, customer preferences, and opportunities in Texas. With this clear, actionable data, you’ll be ready to make smarter decisions and reduce risks as you expand into Texas. 

2. Prep a market entry plan 

Once you have a good grasp of the Texas market, it’s time to create a plan. Start by setting clear, achievable goals for your business. Whether you’re aiming to hit sales target, build partnerships, or grow your market share, make sure you know exactly how you’ll measure success. This clarity will help you stay focused and track your progress.

Next, build a realistic budget. Think about startup costs like setting up your office, legal fees, and registering your business, as well as regular expenses like rent, staffing, utilities, and marketing. You’ll also want to have a plan for managing cash flow, especially in the early stages when you might be spending more than you’re bringing in.

When it comes to logistics, Texas is huge, so pick a location that gives you the best access to suppliers, customers, and transport routes. Research the local talent pool to decide if you’ll hire locally or bring in staff from elsewhere. Also, consider warehouse availability, shipping costs, and infrastructure like highways and ports to keep your supply chain efficient. 

Finally, make sure your marketing fits the local culture. If you're opening a coffee shop in Austin, focus on Instagram and host live music or pop-up events to match the city’s creative vibe. In San Antonio, a family-friendly restaurant could attract customers by sponsoring local festivals or partnering with schools. And in Dallas, where business and finance are big, LinkedIn ads or professional networking events might be the best way to reach the right crowd.

At the EACC Texas, we make it easier for companies to expand into the U.S. We set up custom exploration missions where you’ll meet local industry experts and key contacts. Our market entry program helps you see how your product stacks up against competitors, find your ideal customers, set the right prices, and understand the demand in Texas. We can also help you pick the right location, navigate regulations, and get funding. On top of that, you’ll get access to European accelerator programs, pitch events, introductions to key companies, and marketing strategies to successfully launch your business in the U.S.

3. Pick your business structure and manage compliance

Choosing the right legal structure is a key step when starting a business. Each option—sole proprietorship, LLC, or corporation—has its own pros and cons. A sole proprietorship is the simplest and cheapest to set up, but you’re personally responsible for any debts or legal issues. An LLC offers liability protection for your personal assets but requires more paperwork and fees. A corporation also protects your personal assets but can be more complex to manage and may be taxed twice—once on company profits and again on shareholder dividends.

Next, you’ll need to register your business and make sure you have the right licenses or permits. Some industries, like food service and construction, require extra certifications or inspections. It’s also essential to stay on top of state and federal taxes, which can vary depending on your business type and location.

If you plan to hire employees, it’s important to understand the rules on wages, workplace safety, and tax reporting. This means following minimum wage laws, maintaining a safe work environment, and correctly handling tax withholdings. For instance, Texas is a right-to-work state where employers are prohibited from forcing employees to join a labour union or pay union dues. It is also an at-will state; at-will employment simply means that the relationship between employer and employee can be terminated at any time, by either party, for any reason. The EACC Texas helps you navigate these regulations, so you stay compliant and keep your business running smoothly. Each state in the USA has its own rules, regulations and employment laws.  Although it’s not difficult to remain compliant, these laws do change so we regularly update companies through webinars and connections to professionals who can assist in navigating any changes or issues.

4. Build your local network

Building good relationships is a big part of doing business in Texas. The local culture here is based on trust and personal connections, so putting time into networking can make a huge difference. Start by joining industry groups, attending networking events, and connecting with local chambers of commerce to get your foot in the door.

Big events like South by Southwest in Austin, the Offshore Technology Conference in Houston, and BioNTX in Dallas are great places to meet potential customers, investors, and partners. But don’t skip smaller local meetups—they can be just as effective for making connections.

The EACC Texas makes it easy to connect with the right people. We set up introductions, networking events, and corporate visits to meet potential partners, customers, and industry leaders. We also help you host custom seminars, conferences, and roadshows to get your business noticed. From booking the venue to promoting the event, we’ve got it all covered so you can focus on growing your business.

5. Use expert advice

Connecting with local economic development groups and chambers of commerce is a great way to get a head start in Texas. These groups know the local market inside and out—they can introduce you to the right people, point you toward funding opportunities, and keep you updated on key regulations. Need help finding suppliers, potential partners, or even tax breaks? They’ve got you covered. 

At the EACC Texas, we make it even easier by giving you access to networking events, trade missions, and introductions to local investors. We also guide you through cross-border trade, local compliance, and market insights, so you’re always ahead of the curve. Got more questions? Our expert-led webinars, run by the Enterprise Europe Network and the EACC U.S. Consortium, give you a crash course on key topics like U.S. business laws, immigration, intellectual property, and sustainable energy —so you can enter the U.S. market with confidence.

If you’re ready to take on Texas, reach out now and let’s get started. Oh, and don’t forget to grab a hat and a pair of boots once you’re here – you’ll feel right at home!