Buckley Authors Texas Lawyer Article on Veteran Entrepreneurship in the Lone Star State

Adams & Reese Corporate Services Partner Sean Buckley, a U.S. Navy Veteran, authored an article in the Texas Lawyer, “Texas: A Business-Friendly State for Veteran Entrepreneurs.”

The article coincided with the celebration of Veterans Day – honoring veterans for their service. Buckley discussed how Texas – home to more than 1.5 million veterans, more than any other state – is a business-friendly environment for veteran entrepreneurs.

Buckley, along with Adams & Reese attorney John Woods, is a co-founder of the firm’s Vets to Ventures blog – a legal and business resource for veterans seeking entrepreneurship and/or returning to the workforce.

At Adams & Reese, Buckley advises clients on the purchase and sale of equity and assets, business contracts and disputes, and on a diverse array of corporate services matters, including real estate transactions, entity selection and formation, corporate governance, and franchise opportunities.

Below is Buckley’s article published in Texas Lawyer with permission from the publication.

Texas: A Business-Friendly State for Veteran Entrepreneurs

By Sean Buckley, Adams & Reese

Texas is recognized for its predictable, efficient, and business-friendly regulatory environment, providing significant advantages for veterans making the leap into entrepreneurship. This makes the state an ideal launchpad for those looking to leverage their military experience in the private sector.

With a population of over 1.5 million veterans—more than any other state—Texas is renowned for its hospitality toward military members, offering a welcoming home for their lives after service. The Lone Star State also stands as a beacon for veterans seeking to transition from military service to entrepreneurship and become successful business owners.

Texas is recognized for its predictable, efficient, and business-friendly regulatory environment, providing significant advantages for veterans making the leap into entrepreneurship. This makes the state an ideal launchpad for those looking to leverage their military experience in the private sector. Once a veteran decides to take on the challenge, the veteran can open a “start-up” or proceed through franchising or an M&A transaction.

As an attorney focusing on corporate services, M&A, and business formation, I assist my clients through the daily complexities of launching and scaling their ventures. Today, there is arguably no better state in the nation offering that opportunity for veterans than Texas.

Veterans Make Exceptional Entrepreneurs

Veterans bring a unique approach to business.

First, veterans are trained to navigate uncharted waters. In uniform, veterans routinely make consequential decisions with incomplete information; that bias to act, tempered by disciplined risk management, is the essence of entrepreneurial judgment. Veterans know how to create order out of chaos through mission analysis, a clear understanding of the commander’s intent, and the use of detailed execution matrices. These are skills that translate to the business world and inform the development of a business plan, establishment of operational cadence, and effective translation of high-level strategy into actionable daily tasks.

Second, veterans are adept at building and leading teams. Veterans have learned how to recruit, train, and mentor under pressure; how to develop their team; and how to align incentives and hold standards. Those instincts create cultures of accountability and trust, which are pivotal in small businesses. Veterans already run effective after-action reviews to inform ongoing development. Bringing a “no-fault learning” habit into a startup—identifying what worked, what didn’t, and what to change—accelerates continuous improvement.

Third, veterans are systems thinkers. Many veterans naturally design standard operating procedures (SOPs), checklists, and dashboards. In a young company, that discipline improves customer experience, ensures compliance, and enables scale. A veteran’s structured decision processes and moral courage are durable advantages in entrepreneurship.

The Texas Advantage: A Pro-Business Climate

Texas consistently ranks as a top business-friendly state and has a pro-business environment that ensures veteran-owned businesses are well-positioned for growth and competition. Our state has created a business-friendly environment where veteran-owned companies can thrive.

Here are some advantages, incentives, and resources for veteran entrepreneurs in Texas:

• Formation Fee Waiver and Franchise Tax Exemption: The new veteran-owned business statute, reinstated by Senate Bill 938 (87th Legislature, Regular Session) in 2022, was scheduled to expire on Jan. 1, 2026, but it was made permanent by HB 346 (signed June 2025). The statute provides a waiver for formation fees and an exemption from franchise tax for the initial five-year period of operation.
  
  
  • This incentivizes veterans to start businesses by waiving formation fees, which range from $300 (LLC or corporation) to $750 (professional associations or limited partnerships).
  • To qualify, a new business must be 100% owned by one or more honorably discharged U.S. Armed Forces veterans. An eligible entity must provide a Veteran Verification Letter from the Texas Veterans Commission for each veteran owner.
    
    
• No State Personal Income Tax, Straightforward Business Formation & Clear Regulatory Framework: Our clear, predictable regulatory framework, absence of a state personal income tax, and straightforward business formation process through the Texas secretary of state, provide significant advantages to veteran entrepreneurs. Combined with a large, skilled workforce and an economy diversified across key sectors like energy, technology, and healthcare, businesses can retain more profits for critical reinvestment, fostering growth and stability in their crucial early years.
  
  
• State and Local Procurement Preferences: Texas law provides procurement preferences for veteran-owned businesses in state contracting. For example, the Historically Underutilized Business (HUB) Program, administered by the Texas comptroller, certifies veteran-owned businesses as HUBs, making them eligible for increased visibility and opportunities in state procurement. This can open doors to contracts with state agencies, universities, and other public entities.
  
  
• Texas Resources for Aspiring Veteran Business Owners: Additionally, the state’s extensive network of veteran-focused resources, such as the Texas Veterans Commission, SBA, and local business incubators, provides veterans with guidance, mentorship, and capital they need to succeed.

Texas has minimized bureaucratic red tape, making it easier and faster to start and operate a business. For veterans, who are accustomed to operating within structured yet mission-driven environments, this regulatory clarity is a major asset. It allows them to focus on executing their business plans rather than navigating complex administrative hurdles. The streamlined process for business formation, licensing, and compliance means that veterans can move quickly from concept to operation, capitalizing on opportunities without delays.

Veterans and Entrepreneurship: Franchising or Entrepreneurship Through Acquisition (ETA)

Franchising

For veterans interested in franchise ownership, Texas offers a robust franchise sector. Franchising can be an excellent option for veterans. It combines entrepreneurial autonomy with established playbooks or SOPs, allowing you to leverage an existing brand, supply chains, training, marketing systems, and ongoing support. This enables you to focus your energy on execution, sales, and team leadership—an operational alignment that mirrors how many veterans prefer to operate: mission-focused within a structured framework.

Franchisors actively recruit veterans, often tailoring their messaging to resonate with veterans’ entrepreneurial orientation, many offering discounts or special financing to attract veteran franchisees for their execution of SOPs, ability to maintain standards, and leadership. For veterans, franchising provides a strategic advantage in risk management, as it mitigates many ‘unknown unknowns’ related to product-market fit and operational training, though it does not eliminate all risks.

Veterans evaluating franchise options should conduct due diligence and approach it with structured discipline. Scrutinize the franchise disclosure document, focus on economics, training and support, and engage with existing franchisees regarding ramp-up times, hiring realities, and franchisor responsiveness. It is crucial to be clear-eyed about working capital; franchises are not truly ‘turnkey.’ Success still demands a 24/7 mindset, strong front-line leadership, and relentless local marketing—qualities many veterans already possess.

Entrepreneurship Through Acquisition (ETA)

Veterans can also find a natural fit with entrepreneurship through acquisition commonly referred to as ETA. ETA involves a veteran entrepreneur purchasing an existing, profitable small business through an M&A transaction and applying their leadership to drive its future growth. The rationale is compelling: ETA allows veterans to leverage leadership, strategic planning, and operational execution—skills honed through service—while inheriting an established revenue stream, an existing customer base, and a seasoned staff. ETA provides a solid foundation for expansion and continued success. This approach minimizes startup risk while maximizing the impact of the veteran’s unique abilities.

To execute an M&A transaction, veterans should lean on their military training. Reconnaissance equals diligence—study financial statements, tax returns, customer concentration, supplier dependencies, regulatory licenses, and quality of earnings. Assess culture as you would a military unit—who are the informal leaders, what norms drive results, and where are the friction points? Then plan the “transition of authority” with the same fidelity you would for a change of command—communicate early, honor what already works, and introduce changes via “commander’s intent” and clear metrics.

Conclusion: A Call to Action for Veteran Entrepreneurs & Peer Attorneys

Veterans bring a unique and invaluable skill set to entrepreneurship—leadership, adaptability, resilience, and a result-oriented mindset. Texas’ pro-business climate aligns well with these attributes, as the state’s emphasis on economic freedom and opportunity provides fertile ground for a veteran’s business success. Veterans are trained to assess situations, make decisive judgments under pressure, and execute plans efficiently—qualities highly rewarded in Texas’ dynamic, opportunity-rich market.

With the largest veteran population in the nation, Texas provides an inherent network of peers, mentors, and customers who understand and respect military service. This strong sense of community, coupled with the state’s welcoming environment for business owners, fosters an ecosystem where veterans are supported and celebrated as vital contributors to Texas’ economic vitality.

Having an understanding of and taking advantage of the resources available to veteran entrepreneurs in Texas will not only allow you to better advise your veteran clients, but also significantly foster the enduring strength and prosperity of the Lone Star State, one veteran-owned business at a time.

Happy Veterans Day to all those who continue the watch and those who have served!

Sean Buckley is a partner in the Adams & Reese corporate services practice group. Sean advises clients on the purchase and sale of equity and assets, business contracts and disputes, and on a diverse array of corporate services matters, including real estate transactions, entity selection and formation, corporate governance, and franchise opportunities. Sean is a veteran U.S. Navy Officer and co-founder of the Adams & Reese Vets to Ventures Blog.