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Indiana
100
Colorado
98
North Dakota
96
Pennsylvania
94
South Dakota
92
North Carolina
90
Montana
88
Illinois
86
Ohio
84
Delaware
82
Connecticut
80
California
78
Massachusetts
76
New Hampshire
74
Missouri
71
Mississippi
69
Hawaii
67
Virginia
65
South Carolina
63
Wisconsin
61
Utah
59
Idaho
57
Rhode Island
55
West Virginia
53
Washington
51
Alabama
49
New Jersey
47
Arizona
45
Arkansas
43
Georgia
41
Alaska
39
Nebraska
37
Minnesota
35
Texas
33
Iowa
31
Wyoming
29
Louisiana
27
Maine
25
Maryland
22
Tennessee
20
Kansas
18
Oklahoma
16
Kentucky
14
Nevada
12
Florida
10
Oregon
8
Michigan
6
Vermont
4
New Mexico
2

Best State to Own a Business 2024

Best State to Own a Business 2024

Starting a business can be both exciting and stressful. One of the first decisions that needs to be made is the location of the business. Some states are much easier than others to start a business. Factors that influence this include the average survival rate of business in the state, the tax rates imposed on business owners, the costs of running a business, and the state's economy, among others.

With these factors in mind, these are the top five states for starting a business.

Indiana

Compared to all states, Indiana has a relatively large business workforce and a good business economy. The unemployment rate in the state is below the national average, showing that citizens generally want to and are able to work. This provides a new business with a strong workforce and the comfort that more employees will be available if needed. In addition, the cost of living is much lower in the state than in many others.

With an 83.6% survival rate, new business owners in Indiana can be fairly secure in the idea that their business will not go under quickly. The state has a flat income tax rate of 3.23% which makes it very attractive to new entrepreneurs.

Colorado

Colorado has one of the largest workforces in the country. New businesses have access to many more workers in Colorado than in its neighboring states. The state ranks fifth for financial access for new business owners. Securing funding is usually one of the more difficult aspects of starting a business and is often what deters new business owners. Having the ability to easily secure this funding makes Colorado a great option for a business location.

Once started, businesses are obviously successful in the state, which has an 81.9% business survival rate. Along with a very low LLC formation fee of $50, Colorado has an income tax rate of 4.55% and a corporate tax rate of 24%. While the tax rates are slightly high, the costs to operate a business in Colorado are low compared to the rest of the nation. These financial incentives are the reason so many startups build their home bases in Colorado.

North Dakota

When people think of centers of business, they may not think of North Dakota, but the state is quite business-friendly. The state has one of the lowest personal income tax rates of 2.9%. If low taxes are a main priority for a business, the state is a strong contender. An additional financial benefit is the funding opportunities. Businesses in North Dakota receive an average of $34,894 in startup funds. This is almost 50% higher than the national average.

Pennsylvania

Pennsylvania has a relatively large workforce, a strong business economy, and fairly low business costs. Funding opportunities are plentiful, and the business survival rate is about 83.3% Some businesses may shy away from Pennsylvania because of its relatively high cost of living compared to the other states in the top five, but its income tax rate of 3.07% and large potential workforce may outweigh this negative.

South Dakota

South Dakota is one of the states without a personal income tax. As a result, this may be a location to check out when looking to start a business. The state also has a fairly low cost of living. It also has many opportunities for funding. Businesses in South Dakota receive an average of $31,000 in financial assistance. This contributes to the state’s strong business economy and business survival rate of 81%.

Best State to Own a Business 2024

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State
Score (out of 100)
Total Rank
Business Costs
Business Climate
Financial Accessibility
Economy
Workforce
Total Weighted Score
Indiana10019794332
Colorado9828765531
North Dakota96373105530
Pennsylvania9446794330
South Dakota92566104429
North Carolina9067863429
Montana8878674429
Illinois8684885429
Ohio8498674329
Delaware82108685128
Connecticut801146105428
California78125774427
Massachusetts76133685527
New Hampshire74148445627
Missouri71156475526
Mississippi691610633325
Hawaii67178293225
Virginia65186454525
South Carolina63199733325
Wisconsin61205754424
Utah592110713424
Idaho57228662224
Rhode Island55235393524
West Virginia53248563324
Washington51253575424
Alabama49267283324
New Jersey47273495323
Arizona45288733223
Arkansas43295483323
Georgia41308524423
Alaska39315465323
Nebraska37326245422
Minnesota35334524622
Texas33345735322
Iowa3135864422
Wyoming29369315422
Louisiana27378353322
Maine25384843422
Maryland22396454321
Tennessee20405544321
Kansas18415335521
Oklahoma16427524321
Kentucky144310423321
Nevada12449623121
Florida10457614321
Oregon8464453319
Michigan647934219
Vermont4484313517
New Mexico2497213216
showing: 49 rows

Best State to Own a Business 2024

Sources