Texas has once again been recognized as one of the top states for starting a business, according to a new report from WalletHub.
The 2025 list of the Best & Worst States to Start a Business ranked Texas No. 4. This is a step up from the No. 8 position the Lone Star State held in the 2024 ranking.
This is far from the first report to highlight Texas, or even Dallas, for that matter.
In 2023 and 2024, the Business Facilities’ Rankings Report crowned Texas the top business climate in the nation. In both those years, Site Selection Magazine similarly concluded that Texas enjoys the best business climate anywhere in the country. And last year, Chief Executive magazine awarded Texas the Best State for Business for the 20th straight year.
For the latest ranking, WalletHub compared 25 metrics between all 50 states. The metrics fell into one of three main buckets: business environment, access to resources, and business costs.
Texas scored highest for its business environment, ranking third place nationwide. This bucket assesses factors like the average length of the state’s work week, the share of engaged workers, and the growth in the number of small businesses and startups per capita, among other items.
The state took the No. 12 spot in the country in terms of access to resources. This category looked at factors that included financing accessibility, venture investment amount per capita, and the share of the population that is college-educated.
Regarding business costs, the state only secured No. 34 in the country, its worst-performing category. This category looked at the affordability of office space in the state, labor costs, corporate taxes, and other considerations.
Florida took the top spot in the country, followed by Georgia in second and Utah in third.