Is Austin small business friendly? (income, property taxes, cost of)

[Calexpat]

I am a small business owner who would very like to leave high-tax, small business unfriendly California. I would like to know if Austin is friendly to small businesses in terms of employer taxes, minimum wages, and regulations to set up a business.

[EzPeterson]

Pretty much all of TX is very pro-business, and your tax load is quite a bit less. You'll find a couple of random differences with business property taxes, and many licenses are handled on city/county levels, not state, so it can involve a little more homework when setting up shop at first.

Minimum wage really isn't that big of a difference, but many of the labor laws are significantly different - i.e. overtime, time tracking, etc.

What in particular has you looking at Austin, vs. the rest of the state?

[Don in Austin]

Originally Posted by Calexpat

I am a small business owner who would very like to leave high-tax, small business unfriendly California. I would like to know if Austin is friendly to small businesses in terms of employer taxes, minimum wages, and regulations to set up a business.

Austin has been a good friend to my small business for 33 years. Re' minimum wage -- There is much to be said for paying some amount OVER minimum wage. It need not be much, perhaps the parameters are such that it can not be much. It is really bad for employee morale to send employees the message "I am paying you the smallest wage I can legally get away with."

Don in Austin

[Austin97]

Originally Posted by Calexpat

I am a small business owner who would very like to leave high-tax, small business unfriendly California. I would like to know if Austin is friendly to small businesses in terms of employer taxes, minimum wages, and regulations to set up a business.

austin uses the federal min wage. We now have a franchise tax in texas and it basically works as an income tax. You pay 1% of either gross profit (revenue-cost of goods sold) OR 1% of (revenue - cost of employees).

not sure about regulations, it depends on the type of business.

[EzPeterson]

Originally Posted by Austin97

austin uses the federal min wage. We now have a franchise tax in texas and it basically works as an income tax. You pay 1% of either gross profit (revenue-cost of goods sold) OR 1% of (revenue - cost of employees).

not sure about regulations, it depends on the type of business.

Which is a heck of a lot better than CA's 8.84%!!