The vast majority of businesses located in the United States are small businesses. According to data from the Small Business Administration, also known as the SBA, over 500,000 new small businesses are opened each year. Many factors play a role in determining if the companies will be successful, and the state the business is started is a crucial factor. This article will go over the top 4 states to start a business within during this current year.
1. Texas
Many small business owners have taken heed to the fact that Texas is a very welcoming state for small business startups. Texas has experienced unprecedented growth over the last ten years, and growth looks strong into the coming year. Texas has experienced a 7.7$ increase from the working-age population in the previous five years. One of the biggest reasons for this influx of startups is the low taxes demanded from the state. No income tax for corporations and individuals continues to draw in new businesses. The cost of living is reasonable, which helps to bring in new skilled workforces.
2. Florida
Florida is well known for its low taxes and lack of taxes. The population comprises close to 50% entrepreneurs, and maybe the 5.5% corporate income tax is a big reason. Low labor compensation per hour and a low capital for a startup are other reasons Florida is such a tempting state to start a business in.
3. Colorado
Colorado has a very reasonable tax rate for the income of small businesses. Because of the under 5% income tax rate on corporations, many companies have begun to call Colorado home. Although Colorado does experience a shortage of human capital, the state has seen growth in this sector over recent years. There are great opportunities for a small business startup in Colorado as the state has seen growth year after year recently.
4. Arizona
Arizona boasts a lower labor cost than most other states in America and also has experienced a growing working-age population experiencing growth over recent years. Arizona has become a retiree destination and has had a 3.8% GDP growth rate over recent years.