Business/Corporate

Texas has continued to advance its reputation as a national leader in business competitiveness through a series of recent legislative and regulatory reforms. These updates strengthen the state’s legal infrastructure, reduce compliance burdens, and expand tax incentives designed to attract corporate relocations, headquarters, and large-scale operations to the Lone Star State.

The result is a business environment that combines low taxes, predictable regulation, and a modernized legal framework—making Texas one of the most attractive destinations for corporate domicile and expansion in the United States.

A major step in enhancing Texas’s commercial legal environment is the creation of the Texas Business Courts, which began hearing cases on September 1, 2024. Established by H.B. 19 (2023) and refined by H.B. 40 (2025), these specialized courts are designed to handle complex corporate and commercial disputes, similar to the courts found in Delaware and other leading corporate jurisdictions.

• Judicial Expertise and Efficiency: The Business Courts are presided over by judges with significant commercial law experience, ensuring consistent and efficient resolution of high-stakes business cases.

• Broadened Jurisdiction: Under H.B. 40, the minimum threshold for qualifying cases was lowered from $10 million to $5 million, and jurisdiction now includes intellectual property, trade secret, and arbitration-related matters.

• Venue Certainty: Businesses may designate the Texas Business Courts as the exclusive forum for internal entity disputes, providing predictability and reducing litigation risk.

This specialized court system delivers the consistency and sophistication that large corporations and investors seek, reinforcing Texas’s growing appeal as a preferred corporate domicile.

Texas lawmakers have modernized the state’s corporate statutes to enhance leadership protections and align with other major business jurisdictions.

• Officer Exculpation (S.B. 2411, 2025): Extends existing director liability protections to corporate officers, allowing companies to limit or eliminate monetary liability for acts or omissions in an officer’s official capacity, subject to certain exceptions.

• Shareholder and Litigation Reforms:

  • S.B. 29 (2025) codifies the enforceability of jury trial waivers in business disputes, promoting efficiency and reducing litigation costs.

  • S.B. 1057 (2025) authorizes corporations to set minimum ownership thresholds for shareholder proposals, reducing the risk of nuisance or activist filings.

Together, these updates bring Texas corporate law in line with leading jurisdictions while fostering confidence among corporate officers, directors, and investors.

Texas’s foundational advantage—no corporate or personal income tax—has been further strengthened by new incentives that promote investment, research, and business growth.

• Expanded R&D Franchise Tax Credit (S.B. 2206, 2025): Permanently extends and enhances the Research and Development tax credit, increasing the credit rate and introducing a refundable credit option for companies with minimal franchise tax liability. This reform encourages innovation in technology, energy, and manufacturing sectors.

• Business Personal Property Tax Exemption (H.B. 9, 2025): Pending voter approval in November 2025, this measure would raise the exemption threshold for business personal property from $2,500 to $125,000, offering substantial relief to small and mid-sized businesses managing inventory or equipment assets.

These tax policy updates continue to make Texas one of the lowest-burden states for corporate operations and expansion.

To complement its tax and legal reforms, Texas established the Texas Regulatory Efficiency Office (TREO) under S.B. 14 (2025) within the Office of the Governor. TREO’s mission is to identify and remove outdated, duplicative, or unnecessarily burdensome regulations, promoting a more efficient and transparent business environment.

This initiative reflects Texas’s commitment to reducing regulatory friction and ensuring that businesses can focus on innovation, growth, and job creation—not red tape.

Texas now offers one of the most comprehensive legal and economic frameworks for business success in the nation. With specialized business courts, modernized corporate law, expanded tax incentives, and a commitment to regulatory efficiency, the state continues to attract companies seeking a stable, predictable, and pro-growth environment.

Whether your company is considering a headquarters relocation, subsidiary formation, or cross-border expansion, recent updates to Texas law make the state a compelling choice for long-term investment and operational growth.

At Vanguard Legal PLLC, we serve as your corporate counsel for expanding businesses into Texas. Our attorneys advise U.S. and international clients on:

• Corporate formation and domicile planning

• Mergers and acquisitions (M&A)

• Tax incentives and compliance strategy

• Litigation risk management and Business Court strategy

Vanguard Legal PLLC helps companies leverage Texas’s evolving legal and tax framework to build, relocate, and thrive in one of the most business-friendly jurisdictions in the country.