Doing Business in Houston
Houston is known by many names including Space City, H-town, and the Bayou City. The city’s attraction extends beyond tourism and includes new and established businesses that call Houston home. In fact, the total workforce is just over 3.1M with trade, transportation and utilities, professional and business services, government and education, and health services ranked as the top industries by employment. There are 24 Fortune 500 companies headquartered in Houston and five of Forbes’ largest privately held companies are also located here. While the business climate is certainly favorable, there are many variables to consider. To help business owners and managers, a brief overview of doing business in the city is outlined below.
Houston Economic Profile
The city’s economy is composed of a diverse mix of small businesses to large Fortune 500 and publicly traded entities. There are more than 160,000 businesses located in Houston with a year-over-year employment growth rate of 5.1%. The top industries by the number of establishments include professional and scientific services, healthcare, social assistance, and retail trade. These industries compose almost 40% of the region’s business establishments. In addition, the region has trading relationships with over 200 countries and handled over 266.6M metric tons of exports in 2019.
Houston Business Incentives
Beyond the state tax incentives, there are also several tax incentives available to Houston area companies. Eligibility depends on the type of business conducted, hiring practices, and several other criteria. The programs include Property Tax Abatement (Chapter 312), Foreign Trade Zones, Goods in Transit Exemption, Renewables Franchise Tax Deduction, Opportunity Zones, and the Renewable Property Tax Exemption.
Houston Business Resources
- Business Registration – City of Houston
- Business Starter Kits
- Corporate restructuring
- Federal Reserve Bank – Houston Branch
- Greater Houston Partnership
- Risk advisory
- Small Business Administration – Houston
- Start a Business – Start-Up Guide
- Tax consulting
Interesting Facts About Houston
- The city is the #2 largest location of Fortune 500 company headquarters.
- The underground tunnels which are located 20 feet below ground run for seven miles and link 95 total city blocks.
- The Astrodome was the first-ever dome stadium to be built in the world.
- In 1891, Houston became the first city with electric streetcars.
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