A new ranking puts Texas at No. 9 among the states with the highest expenses for starting and operating a business. Photo via Getty Images
Everything is bigger in Texas — or at least somewhat bigger — and that appears to include the cost of running a new business.
A new ranking from business consulting firm Venture Smarterputs Texas at No. 9 among the states with the highest expenses for starting and operating a business.
New York appears at No. 1 on the list, followed by Washington and Massachusetts.
The cheapest state? Mississippi. It was preceded in the ranking by Kentucky and North Dakota.
To come up with its list, Venture Smarter looked at eight metrics, including corporate tax rate, average LLC filing fees, average real estate costs, and minimum wage.
Texas scored 59.74 out of 100 for startup expenses, with a higher score being worse.
The Lone Star State tied with Tennessee for the highest initial LLC filing fees ($300). But unlike many other states, Texas doesn’t require business owners to pay LLC filing fees each year to keep a business incorporated.
Texas fared well on several counts, though, such as no corporate tax, a low state-mandated minimum wage ($7.25 an hour), and relatively low real estate costs.
“This research aims to provide valuable insights into the business climate across various states, offering new entrepreneurs the information they need to make well-informed decisions on their entrepreneurial journey,” Venture Smarter says in a statement. “By understanding the unique characteristics and challenges of each state, aspiring business owners can navigate the complexities of different markets and optimize their chances of success.”
When it comes to Texas being a top state for business, we guess the jury's out. Photo via Getty Images
Texas economic development boosters are crowing about a new top-in-the-nation ranking. But they’re probably frowning about a different business ranking that’s mediocre.
First, the good news.
Business Facilities magazine just named Texas the 2023 State of the Year in recognition of its business climate, economic development leadership, and “blockbuster” year for capital investment and job creation. It’s the fifth time that Business Facilities has crowned Texas as the top state.
“Texas moves at the speed of business,” Gov. Greg Abbott said in a news release. “As recognized by Business Facilities magazine, Texas leads the nation for corporate relocations, business expansions, and job creation.”
“With the best business climate in the nation, leading investments in education and workforce development, and our young, skilled, diverse, and growing workforce, Texas is poised to lead the nation in 2024,” the governor added.
Additionally, Texas again appears on WalletHub's annual list of "Best States to Start a Business" — but ranks lower than last year. The Lone Star State ranked No. 8 this year compared to last year's No. 3 spot. This ranking looked at business environment, access to resources, and business costs across 25 relevant metrics by analyzing data from U.S. Census Bureau, Bureau of Labor Statistics, and other resources.
Now, the not-so-good news.
Texas landed at No. 32 on Forbes Advisor’s new list of the best states to start a small business in 2024. The Lone Star State received especially low marks economy, workforce, and business climate, but fared better in two other categories: business costs and financial accessibility.
Topping the Forbes Advisor list was North Dakota, followed by Indiana, Arkansas, South Dakota, and North Carolina.
Texas recently was awarded three other No. 1 business climate rankings, though: Best Business Climate in the U.S. by Business Facilities in June, Best Business Climate in the U.S. by corporate executives in September, and Top Business Climate in the U.S. by Site Selection Magazine in November.
“In a state the size of Texas, business is not just finding a home in the metros. A laser focus by economic developers across the state to foster established businesses as well as innovative startups is paying off for communities of all sizes,” Anne Cosgrove, editorial director of Business Facilities, says in a news release.
The magazine covers corporate site selection and economic development.
Other contenders for 2023 State of the Year were:
Arizona
Florida
Georgia
Indiana
Missouri
Nevada
North Carolina
Tennessee
Utah
Virginia
Texas, once again, has been named a top city for starting a business. Photo via Getty Images
For years, Texas has been lauded for its business climate being welcoming for new businesses and startups. This year's study shows that the Lone Star State has yet again made the list.
Texas ranked as the third best state to start a business in personal finance website WalletHub's recent list, 2023's Best & Worst States to Start a Business, with a score of 56.85 points. Texas ranked behind Utah, No. 1, and Florida, No. 2, and just ahead of Colorado. Idaho, Georgia, Arizona, Nevada, Oklahoma, and California make up the rest of the top 10, respectively.
The study looked at 27 key indicators of startup success across all 50 states. Texas was recognized for these factors in particular:
No. 10 – average growth in number of small businesses
No. 30 – labor costs
No. 10 – availability of human capital
No. 4 – average length of work week (in hours)
No. 14 – cost of living
No. 13 – industry variety
No. 31 – percentage of residents who are fully vaccinated against COVID-19
Richard Ryffel, professor of finance practice at Washington University in St. Louis, noted the importance of policy in making a state a good place to start a business..
"Established businesses looking to expand might expand or relocate entirely based on the relative favorability of the local business climate," Ryffel says. "Recently, Texas, for example, has been the beneficiary of some significant business relocations based on its business-friendly policies."
The methodology of the study focused on three key dimensions — business environment, access to resources, and business costs — and 27 relevant metrics. Each metric was graded on a 100-point scale, and then each state’s average across all metrics was used to calculate its overall score.
Houston suburbs didn't manage to crack the top 200, but four were recognized amongst the rest of the best small business towns, according to the study:
Affluent Houston neighbor Bellaire is cashing in as the richest small town in Texas for 2025, according to new study from GoBankingRates.
The report, "The Richest Small Town in Every State," used data from the U.S. Census Bureau's American Community Survey to determine the 50 richest small towns in America based on their median household income.
Of course, Houstonians realize that describing Bellaire as a "small town" is a bit of misnomer. Located less than 10 miles from downtown and fully surrounded by the City of Houston, Bellaire is a wealthy enclave that boasts a population of just over 17,000 residents. These affluent citizens earn a median $236,311 in income every year, which GoBankingRates says is the 11th highest household median income out of all 50 cities included in the report.
The average home in this city is worth over $1.12 million, but Bellaire's lavish residential reputation often attracts properties with multimillion-dollar price tags.
Bellaire also earned a shining 81 livability score for its top quality schools, health and safety, commute times, and more. The livability index, provided by Toronto, Canada-based data analytics and real estate platform AreaVibes, said Bellaire has "an abundance of exceptional local amenities."
"Among these are conveniently located grocery stores, charming coffee shops, diverse dining options and plenty of spacious parks," AreaVibes said. "These local amenities contribute significantly to its overall appeal, ensuring that [residents'] daily needs are met and offering ample opportunities for leisure and recreation."
Earlier in 2025, GoBankingRates ranked Bellaire as the No. 23 wealthiest suburb in America, and it's no stranger to being named on similar lists comparing the richest American cities.
Corrosion is not something most people think about, but for Houston's industrial backbone pipelines, refineries, chemical plants, and water infrastructure, it is a silent and costly threat. Replacing damaged steel and overusing chemicals adds hundreds of millions of tons of carbon emissions every year. Despite the scale of the problem, corrosion detection has barely changed in decades.
In a recent episode of the Energy Tech Startups Podcast, Anwar Sadek, founder and CEO of Corrolytics, explained why the traditional approach is not working and how his team is delivering real-time visibility into one of the most overlooked challenges in the energy transition.
From Lab Insight to Industrial Breakthrough
Anwar began as a researcher studying how metals degrade and how microbes accelerate corrosion. He quickly noticed a major gap. Companies could detect the presence of microorganisms, but they could not tell whether those microbes were actually causing corrosion or how quickly the damage was happening. Most tests required shipping samples to a lab and waiting months for results, long after conditions inside the asset had changed.
That gap inspired Corrolytics' breakthrough. The company developed a portable, real-time electrochemical test that measures microbial corrosion activity directly from fluid samples. No invasive probes. No complex lab work. Just the immediate data operators can act on.
“It is like switching from film to digital photography,” Anwar says. “What used to take months now takes a couple of hours.”
Why Corrosion Matters in Houston's Energy Transition
Houston's energy transition is a blend of innovation and practicality. While the world builds new low-carbon systems, the region still depends on existing industrial infrastructure. Keeping those assets safe, efficient, and emission-conscious is essential.
This is where Corrolytics fits in. Every leak prevented, every pipeline protected, and every unnecessary gallon of biocide avoided reduces emissions and improves operational safety. The company is already seeing interest across oil and gas, petrochemicals, water and wastewater treatment, HVAC, industrial cooling, and biofuels. If fluids move through metal, microbial corrosion can occur, and Corrolytics can detect it.
Because microbes evolve quickly, slow testing methods simply cannot keep up. “By the time a company gets lab results, the environment has changed completely,” Anwar explains. “You cannot manage what you cannot measure.”
A Scientist Steps Into the CEO Role
Anwar did not plan to become a CEO. But through the National Science Foundation's ICorps program, he interviewed more than 300 industry stakeholders. Over 95 percent cited microbial corrosion as a major issue with no effective tool to address it. That validation pushed him to transform his research into a product.
Since then, Corrolytics has moved from prototype to real-world pilots in Brazil and Houston, with early partners already using the technology and some preparing to invest. Along the way, Anwar learned to lead teams, speak the language of industry, and guide the company through challenges. “When things go wrong, and they do, it is the CEO's job to steady the team,” he says.
Why Houston
Relocating to Houston accelerated everything. Customers, partners, advisors, and manufacturing talent are all here. For industrial and energy tech startups, Houston offers an ecosystem built for scale.
What's Next
Corrolytics is preparing for broader pilots, commercial partnerships, and team growth as it continues its fundraising efforts. For anyone focused on asset integrity, emissions reduction, or industrial innovation, this is a company to watch.
Energy Tech Startups Podcast is hosted by Jason Ethier and Nada Ahmed. It delves into Houston's pivotal role in the energy transition, spotlighting entrepreneurs and industry leaders shaping a low-carbon future.
Fifty-one scientists and professors from Houston-area universities and institutions were named among the most cited in the world for their research in medicine, materials sciences and an array of other fields.
The Clarivate Highly Cited Researchers considers researchers who have authored multiple "Highly Cited Papers" that rank in the top 1percent by citations for their fields in the Web of Science Core Collection. The final list is then determined by other quantitative and qualitative measures by Clarivate's judges to recognize "researchers whose exceptional and community-wide contributions shape the future of science, technology and academia globally."
This year, 6,868 individual researchers from 60 different countries were named to the list. About 38 percent of the researchers are based in the U.S., with China following in second place at about 20 percent.
However, the Chinese Academy of Sciences brought in the most entries, with 258 researchers recognized. Harvard University with 170 researchers and Stanford University with 141 rounded out the top 3.
Looking more locally, the University of Texas at Austin landed among the top 50 institutions for the first time this year, tying for 46th place with the Mayo Clinic and University of Minnesota Twin Cities, each with 27 researchers recognized.
Houston once again had a strong showing on the list, with MD Anderson leading the pack. Below is a list of the Houston-area highly cited researchers and their fields.
UT MD Anderson Cancer Center
Ajani Jaffer (Cross-Field)
James P. Allison (Cross-Field)
Maria E. Cabanillas (Cross-Field)
Boyi Gan (Molecular Biology and Genetics)
Maura L. Gillison (Cross-Field)
David Hong (Cross-Field)
Scott E. Kopetz (Clinical Medicine)
Pranavi Koppula (Cross-Field)
Guang Lei (Cross-Field)
Sattva S. Neelapu (Cross-Field)
Padmanee Sharma (Molecular Biology and Genetics)
Vivek Subbiah (Clinical Medicine)
Jennifer A. Wargo (Molecular Biology and Genetics)
William G. Wierda (Clinical Medicine)
Ignacio I. Wistuba (Clinical Medicine)
Yilei Zhang (Cross-Field)
Li Zhuang (Cross-Field)
Rice University
Pulickel M. Ajayan (Materials Science)
Pedro J. J. Alvarez (Environment and Ecology)
Neva C. Durand (Cross-Field)
Menachem Elimelech (Chemistry and Environment and Ecology)
