If you’re looking to start a business in America right now, you couldn’t have chosen a better time. Smaller business confidence is higher than it has been in years, with investment levels and profits inching higher and higher in 2020.
However, not all states are created equal. When looking for the best states to open a small business, your choice of location may have a considerable impact on your chances of success.
Some states have booming economies and business-friendly local laws, while others will leaving you wanting. If you want to know the best states to start a business in America right now, read this guide to find out.
When it comes to finding the best state for business ventures in 2020, you won’t find much better than Utah.
Best States to Start a Business:
The Beehive State has a perfect combination of low business costs, a favorable tax climate, a growing population of young, educated workers, and heavy venture capital flows.
With one of the fastest-growing populations in America, you’ll find no shortage of talented human capital here.
In addition, Utah’s low corporate income tax rate of just 4.95% means that any entrepreneur will see more of their profits here than almost anywhere else in the country.
California may have gotten some bad press due to the spiraling cost of living in recent years, but it remains one of the top states to start a business.
California is the economic engine of the United States, accounting for 14.5% of the country’s GDP and 11% of the population.
Tens of thousands of business owners relocate to California every year, taking advantage of the long distance movers that can ensure everything they need is transported to the Golden State with zero hassle.
Despite experiencing a rocky few years in the wake of the Recession, Florida has emerged as the best state to start a business on the East Coast.
It has one of the highest levels of startup activity in the country, fuelled in part by the very low costs of doing business.
Labour is cheaper here than almost anywhere else in the US. In addition, surveys have shown that around 18.8% of new businesses in Florida last year started with less than $5000 in funding.
They say that everything is bigger in Texas, and that is certainly the case when it comes to the economy. With an annual GDP growth rate of 8.2%, only California beats the Longhorn State when it comes to growth.
One area where Texas most definitely beats California is housing and living costs, which are a fraction of that they are on the coast.
In addition, a huge working-age population and low corporate income tax make Texas a stellar choice for entrepreneurs.
5. North Carolina
North Carolina is one of the ideal states to start a business if you’re looking for funding.
$2.68 billion in venture capital funding was handed out to businesses in the state last year, meaning that each new business received an average of $15.1 million apiece.
Combine this with rock bottom corporate taxes and very little red tape, and you’ve got the perfect environment for ambitious entrepreneurs.
Now that you know the best states to start a business, it’s time to get going. Make sure to read our comprehensive guides on how to start a business, written by experts who have all of the insider information you will need.