McALLEN — The city is the best place in the country to start a home-based business, according to a site that aims to help new business owners make informed decisions.
Justbussiness.com compared home prices, the effective median income tax rate and the cost of doing business in cities across the country and ranked the top 15, with McAllen leading the pack.
“Working from home, or starting a business out of your home, is not a new concept,” the report stated. “But the coronavirus pandemic has caused an immense shift in the way we think about work. It has accelerated the rise of ecommerce, remote work, and flexible hours.”
As such, the publication expects home-based entrepreneurship to become a societal norm.
“We also expect to see demographic and geographic shifts as people become untethered from living in certain cities or regions, and can look to new cities where homes are cheaper, startup costs are lower, living is more affordable, and internet speeds are still robust enough to conduct business,” the report continued.
McAllen’s low home prices also topped the list with a median home price of $124,000. That, coupled with a low effective median income tax rate of 14.82% — based on the median household income in the U.S. of $68,703 — propelled McAllen to the top of the list.
“McAllen has created an environment that encourages small-business and entrepreneurs to open their doors, whether that business is along the famed 10th Street, popular shopping centers, or just down the hall from their bedroom,” said Steve Alhenius, McAllen Chamber of Commerce president. “And we are proud that they are all opening up in our community, and we at the McAllen Chamber of Commerce are here to help them all.”
The report also noted the city has a low filing fee of about $300 for limited liability corporations. And Texas’ “low cost of doing business” and higher internet speeds were also factored into the research.
“Small business is the backbone of any city’s economy and nowhere is that truer than here in McAllen,” Mayor Jim Darling said.
The new ranking comes as the city celebrates another accolade: being named the third best place to live for quality of life by the U.S. News and World Report.