You’ve probably heard by now that the state of Texas is red-hot for entrepreneurship. It’s become one of the most attractive states for new businesses, and only seems to be gaining steam. What’s not discussed as often within this narrative though is that Texas has also become arguably the top destination specifically for women starting new businesses. In fact, Fit Small Business ranked Texas first in this very category in 2019.
A lot of women entrepreneurs are finding opportunities here in the Lone Star state, and we can’t wait to see what companies they all come up with in the next several years. But we also want to help! And as part of that effort, we’re going to briefly cover a few ways for new Texas business owners to save money in the early going.
1 – Prioritize Tax Write-Offs
By now people seem to be aware: Texas is one of a handful of states without an income tax. This is actually one of the main factors that seems to be driving so many entrepreneurs to the state (though The Balance’s breakdown of no-income tax states does note that Texas makes up for it somewhat with a high property tax…). But this isn’t the only way that your tax situation can help to save you money as a cash-strapped aspiring entrepreneur. You can also lighten your tax burden by prioritizing tax write-offs from day one. This means doing a little bit of research (or consulting a tax pro) to find out what sorts of expenses might qualify as tax write-offs given the work you’re doing. By doing this early on, you can carefully track expenses and ultimately get a significant chunk taken out of your taxes when the time comes.
2 – Choose a Favorable Structure for Taxes
Sticking with taxation for one more point, we’d also note that the type of new business you set up will have some sway over what kinds of taxes you pay (and how much they amount to). Crucially, ZenBusiness’s look at Texas business structures points out that certain options, such as sole proprietorships and LLCs, help owners to avoid what’s known as “double taxation.” This unfortunate circumstance means both an owner and the business itself owe taxes on business income. Choosing the right structure helps you to avoid this, and potentially pay much less overall to the big, bad IRS.
3 – Seek Out Grants
In Texas, there are some programs and grant funds available specifically to help women entrepreneurs get started. For instance, the vaunted Amber Grant for Women doles out $10,00 each and every month to a female business owner (as well as an additional fund for a single, chosen entrepreneur at the end of the year). This isn’t something you should count on, mind you, but it is absolutely something you should explore. Securing a startup grant is an incredible way to fund the founding of your business without having to dig too far into your own wallet.
4 – Embrace Coworking
Naturally, our final recommendation is to embrace coworking! Fundamentally, this is a great way to save money on rented space for a company (particularly given that property tax we mentioned above). But as our ‘10 Ways to Save Money While Coworking’ pointed out, joining a coworking space also opens the door to other ways to save. You can take advantage of coffee that’s provided instead of stopping at Starbucks; you can network and meet others without having to buy lunch or commute; and there are often discounts or special perks you can enjoy for free. All in all, it’s a great way to set up your business that will keep day-to-day costs low and your daily satisfaction high.
We know that starting a business always costs more than expected, and that every entrepreneur is ultimately looking for ways to save. We hope that these tips will help the emerging female entrepreneurs in Texas to conquer the state that much faster!