Despite having no income tax and consistently being ranked the top state to do business in, Texas is less business-friendly than thought to be, according to a writer for the Texas Scorecard.

Josh Hammer said that because Texas is litigation-friendly and plaintiff-friendly, that threat makes it tougher to do business in the state. He said the state was ranked 38th in the country by the U.S. Chamber of Commerce Institute for Legal Reform due to its litigation climate.

"One particularly glaring problem is the U.S. District Court for the Eastern District of Texas, which is so notoriously plaintiff-friendly that it hosts nearly half of all new patent infringement lawsuits in the country," Hammer wrote.

Hammer said Texas could be friendller to business owners if it reined in frivolous litigation.