Left my $130K corporate PM job 18 months ago to start a business in DFW. Here's the reality nobody posts about on LinkedIn.
What I started: Marketing consultancy focused on DFW small businesses.
The numbers (Year 1):
- Revenue: $87K
- Expenses: $34K (software, coworking space, insurance, LLC fees)
- Net profit: $53K
- That's a $77K pay cut from corporate. Ouch.
Year 2 (projected):
- Revenue: $140K (based on current pipeline)
- Expenses: $42K
- Net profit: $98K
- Getting closer to corporate salary. But no benefits, no 401K match.
What nobody tells you:
- Self-employment tax: 15.3%. On $53K profit that's $8,100. Gone.
- Health insurance: $480/month for a marketplace plan. $5,760/year.
- No paid vacation. If you don't work, you don't earn.
- The loneliness is real. Coworking space helps.
DFW-specific advantages for small business:
- No state income tax (huge for self-employment)
- Low cost of living means your runway lasts longer
- DFW has 7M+ people — massive local market
- Texas franchise tax threshold is $2.47M — most small businesses pay $0
Resources I used:
- SCORE Dallas — free mentoring from retired executives
- SBA DFW office — free workshops on business planning
- Dallas Entrepreneur Center (DEC) — co-working, networking, pitch events
- Texas Secretary of State — LLC formation ($300)
Sources:
- IRS — self-employment tax guide
- Healthcare.gov — marketplace plan pricing for Texas
- Texas Comptroller — franchise tax information
- SBA — small business resources for DFW
- SCORE — free mentorship program