Starting a new business is a daunting task. From putting together a business plan, finding a suitable location, considering finances, and finding customers, small business owners face a lot of hurdles. While it may seem like states with large populations like California and New York would be good places to start a small business due to the number of potential customers, it is often smaller states with better tax rates and higher minimum wage which help small businesses last longer.
Which states offer the best opportunity for small businesses to flourish? The researchers at Finfare.com set out to find just that. The team looked at a number of factors including corporate tax rate, average commercial electric bill, fee of creating an LLC, minimum wage, and business survival rates within 1/5 years to determine which states are the best for new small business owners.
The following are the 10 states that came out on top of the list:
- Ohio
- Nevada
- Indiana
- Arkansas
- North Carolina
- California
- Oklahoma
- Kentucky
- Pennsylvania
- Mississippi
Ohio ranks highly as the state has a 0% corporate tax rate, high business survival rate (78.5% after 1 year, 53.1% after 5 years), and a reasonable monthly commercial electric bill. These factors can be a contributing factor in how businesses in the area survive.
The 10 states/districts on the bottom of the list are:
- Washington D.C.
- Alaska
- New Jersey
- Rhode Island
- Connecticut
- Minnesota
- Maine
- Vermont
- Tennessee
- Oregon
Washington D.C. Has a high corporate tax rate (8.3%) as well as the lowest 1-year business survival rate in the United States (72%).
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