Statistics show that roughly 20% of new businesses will fail within a year from their launch. Obviously, this is bad news for most entrepreneurs who have just decided to start their first business.
Most of them think that they shouldn’t make any mistakes, or else their investment will be in vain. However, what some of them don’t consider is the state where they chose to start their business. Naturally, if you want to round up the highest profit possible, then you must carefully pick your state.
Therefore, today we’ll be talking about the ten best and worst states of the US to start a business in. If you already know them and need a bit of legal advice, then feel free to reach out to a reliable law firm and have your questions answered today.
Location is Everything
You already know that, besides research, marketing strategies, advertising, and whatnot, location plays a role in your business as well. As they say, location is everything – no matter whether you want to start a business or find a proper job.
In this respect, there have been studies made that analyzed a location’s access to resources, overall business environment, as well as business costs. The result is a 100-point scale that shows us exactly which areas you should start a business in and which ones you should avoid.
The 10 Best States
The ten best states for you to start your business in are, as follows:
1. Texas
2. Utah
3. Georgia
4. North Dakota
5. Oklahoma
6. Florida
7. Arizona
8. California
9. Montana
10. Colorado
Texas, home to the American Airlines and AT&T (News - Alert), is on the first place – with an economy valued at $1.8 trillion back in 2018, which is also the country’s second-largest economy.
Moreover, Texas has also seen the fourth highest average growth when it comes to the number of small businesses among all of the US states in 2018.
Right after Texas, we have Utah, which is among the top states in terms of making financing accessible to those that own a business.
The 10 Worst States
The ten worst states for you to start your business in are, as follows:
1. Rhode Island
2. New Jersey
3. New Hampshire
4. Hawaii
5. Connecticut
6. Pennsylvania
7. Delaware
8. Vermont
9. New York
At the very bottom of the list, we have Rhode Island, a state that comes with the highest corporate tax rates in the US, 9%. Reportedly, it ranked dead when it comes to the business environment, and last for business costs.
The Bottom Line
We should also mention that Maryland, for example, comes with the highest labor costs for business, while Mississippi comes with the lowest. On the other hand, Minnesota is home to the cheapest office spaces in the US – unlike New York, Alaska, and California, which have the most expensive ones.
One thing is clear – if you have a bright idea for a business, Texas is the place you want to go. At the same time, you should also look into the other states, as you may find a location that’s more appealing to you – either in costs, profits, or scenery.
