Starting a business in the United States is an exciting venture, with 448,758 new small business applications submitted in November 2024 alone.
But where should you set up shop? Not all states are created equal when it comes to supporting new businesses. Below, we highlight the best places in America to start your entrepreneurial journey, based on tax policies, economic growth, and access to resources.
1. Utah: "A Hotbed for Innovation"
According to Shopify, Utah leads as one of the most business-friendly states, thanks to its low 4.55% corporate tax rate, affordable $59 filing fee, and skilled workforce. With a fast-growing economy and robust venture capital opportunities, it's no surprise that many startups thrive here. "Utah's support for innovation makes it a magnet for entrepreneurs," one business analyst noted.
2. Florida: "The Sunshine State of Opportunity"
Florida's lack of personal income tax and reasonable 5.5% corporate tax rate make it an attractive destination for small businesses. The state boasts 3.3 million small businesses, supported by grants, tax exemptions, and workforce training. Industries like tourism and healthcare thrive in this vibrant economic environment.
3. Texas: "Everything's Bigger in Business"
With no corporate income tax and a strategic location, Texas offers unmatched opportunities for sectors like energy and tech, National Business Capital said.
However, beware of its gross receipts tax, which can catch unprepared entrepreneurs off guard. Still, Texas remains a top contender with over 3.3 million small businesses.
4. North Carolina: "Fast Growth, Low Costs"
North Carolina's 2.5% corporate tax rate—the lowest in the nation—combined with a booming tech sector and incentives like tax credits, makes it a haven for startups. The state's Research Triangle is particularly renowned for its innovation-friendly climate.
5. Indiana: "Midwest's Hidden Gem"
Indiana offers low taxes and a cost-effective business environment. With a 4.9% corporate tax rate and strategic location for logistics and manufacturing, it's an ideal state for entrepreneurs looking to minimize operational expenses.
These states offer diverse opportunities depending on your business goals. Whether you're seeking low taxes, access to capital, or a supportive community, choosing the right state can significantly influence your success. As one entrepreneur aptly said, "Where you start matters as much as how you start."
