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Top 5 States to Start a Small Business

Updated: Jun 1, 2022

What states do you think of when you think of starting up a new business? As an entrepreneur location is a key element you have to consider when mapping out your small business plan. It is easier to be successful if you pick an area that caters to the small business world. There are studies that have been taken over the years have combined factors and ratings that map out the best areas to start a small business.

Here are the states that make the top 5:

  1. Texas – The state of Texas has the 15th largest economy in the world. This state is home of 64 fortune 500 companies and this that is more than any other state. Texas has catered to industries in the small business world. Also Texas has a huge number in export sales per a worker making them the highest of any other state in the US.

  2. Washington – Washington has taken leaps to energy efficiency and using more alternative energy sources than any other state. The economy growing in Washington is very technology based. A desirable incentive Washington has is the cost of growing a business is low. Unlike other states, Washington does’t have income or capital-gains taxes.

  3. Virginia – Virginia is the home of the Department of Business Assistance and Small Business Financing Authority Division. They have a great corporate income tax and sales tax that is appealing to any small business. The largest port in the country is in Virginia, giving a strong import and export climate. Virginia leads in the technology revolution and has the most IT jobs.

  4. Colorado – Colorado is growing at rapid speeds and is growing to be a strong place to start a business. This state is developing to have the third most educated workforce in the country. Colorado has a great level of property taxes, consumption, and income.

  5. North Carolina – North Carolina is home of some big financial institutions like Bank of America and BB&T. There is a lot of high tech businesses in this state; providing lots of expertise in the technology world. Additionally, North Carolina has a low cost of living compared to all the other tech-hubs in the country.

Now you have to think…what about New York and California? The main reason these two states did not make the top 5 radar is because they are very expensive to live and start a business.

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