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City of McAllen Best City in U.S. to Start a Home-Based Business

Justbusiness.com ranked 15 cities, with McAllen taking the top spot


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Anthony Acosta – CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=74162763
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Texas Border Business

For many, the dream of owning their own business is easier to make a reality in this new normal of e-commerce, work from home or even flex hours.  Whether the business started as a “side hustle,” or was simply a complete all-in start-up, entrepreneurship has surged, with a 40% rise in new business applications from this time last year.   And according to a study done by the folks at Justbusiness.com, McAllen was the best city in the United States for starting a home-based business.

Mayor Jim Darling

“Small business is the backbone of any city’s economy and nowhere is that truer than here in McAllen,” said Mayor Jim Darling.  “While traditional small business required a storefront and a sign letting customers know you were open, in today’s electronic commerce and remote work options, that isn’t necessary and that helps create more opportunities for entrepreneurs to open a home-based business.” 

Highlights for McAllen earning this ranking include its low home prices – median home price is $124,000 – and a very low effective media income tax rate: 14.82%, based on a median household income in the U.S. of $68,703.  In addition, Texas’ low cost of doing business in the state was a reason, including McAllen’s limited liability corporation filing fees of about $300 contributed to that number one ranking.  Texas’ higher internet download speeds Texas, compared to other top-ranking states on the list, was also a factor that helped McAllen. And finally, the average price of electricity in the state was used in the methodology for the ranking that led to McAllen earning that number one ranking for starting a home-based business. 

Here’s a link to the report: https://www.justbusiness.com/starting-a-small-business/best-cities-for-home-businesses

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