Businesses are popping up left & right, & there’s never been a better time to be an entrepreneur or start your own business. However, this means that you will have to decide where to set up shop-and that’s not always easy!
To help you make your decision, here are some of the best states in the USA to start your business. Once you decide the state, you can get it registered through various LLC services in an affordable way.
Best States for Starting A Business In USA
North Dakota
For those wanting to form an LLC, North Dakota is also an attractive option. The state’s formation fee for LLCs is just $135, one of the lowest fees in the nation. This makes forming an LLC in North Dakota one of the least expensive options.
And with its impressive business survival rate, you can feel secure knowing that your LLC will likely be around for the long haul. Whether you’re just starting out or are looking for a new place to set up shop, North Dakota is an excellent choice for business owners.
Colorado
With a strong economy and a low cost of living, it’s a great place to get started. The business survival rate in Colorado is excellent, with 84% of small businesses surviving the first five years, compared to the national average of 79%.
It’s also ranked among the top states for business formation, with more than 59,000 new businesses created in 2018 alone. The state is also home to numerous incubators and accelerators, as well as world-class universities & research centers. As such, there is an abundance of talent in the area that can help you grow your business.
Indiana
When it comes to business survival rate, Indiana ranks 4th in the nation. According to a study by the Ewing Marion Kauffman Foundation, Indiana had a four-year business survival rate of 73.8% in 2017. This is higher than the national average of 70.2%. In terms of tax rates, Indiana is quite friendly to businesses. It offers a flat corporate income tax rate of 8.5%, which is lower than the national average & it offers a lower sales tax rate than the national average.
When it comes to LLC formation fees, the cost in Indiana is quite low. To form an LLC in Indiana, the fee is only $90, which is far lower than the national average of $200. This makes it easier and more affordable for entrepreneurs to form their businesses. Its business-friendly environment and low costs make it an ideal choice for entrepreneurs who want to launch their companies without breaking the bank.
Pennsylvania
When it comes to business survival rate, Pennsylvania ranks highly. According to the U.S. Small Business Administration, Pennsylvania has a five-year survival rate of 78%, putting it above the national average of 67%. This high rate of success means that businesses in Pennsylvania have a good chance of making it through their first few years.
In terms of taxes, Pennsylvania is an appealing choice. The state’s corporate income tax rate is flat at 9.99%. Additionally, the personal income tax rate ranges from 3.07% to 4.92%. Both of these are relatively low compared to other states, making them attractive to entrepreneurs looking to save money & save taxes.
Finally, Pennsylvania has favorable LLC formation fees. The cost of forming an LLC in Pennsylvania is only $125, which is much lower than the national average. This makes the state an appealing option for business owners who are looking to start a company without breaking the bank.
South Dakota
This state has an incredibly high business survival rate of 96%, meaning that 96% of businesses that are started here stay open for at least two years. When it comes to taxes, South Dakota is also quite advantageous for businesses. The corporate tax rate for corporations is only 0.5%. The individual income tax rate is 4.5% and the sales tax rate is just 4%. This makes it much easier to keep more of your profits and invest them back into your business.
LLC formation fees are also very affordable in South Dakota. To form an LLC, the filing fee is only $150. This makes it easy to create an LLC without spending a large amount of money upfront.
Montana
With one of the lowest LLC formation fees in the country at only $70, Montana provides entrepreneurs with a great opportunity to start their businesses. In addition, Montana boasts a high rate of business survival.
According to the U.S. Census Bureau, 87.9% of businesses in Montana survived between 2012 and 2017 – one of the highest survival rates in the nation. This means that when you choose to start your business in Montana, you can rest assured knowing that you have a good chance of success.
North Carolina
North Carolina has a high rate of business survival. In fact, it has one of the highest rates in the nation, with nearly three-quarters of businesses surviving at least five years. This means that you can be confident that your new venture will have a strong chance of success.
Taxes are also quite low in North Carolina. There are no corporate taxes, so you can focus on growing your business without having to worry about paying too much to the state & additionally, LLC formation fees are among the lowest in the nation, making it easy to form a limited liability company.
Ohio
Ohio has a very low cost of living & a wide variety of industries; it also has one of the highest business survival rates in the nation. In fact, according to a 2020 report by the Small Business Administration, Ohio had the fourth-highest percentage of businesses surviving more than five years. If you’re looking to start your own business, Ohio should definitely be at the top of your list!
Delaware
The state has long been known for its favorable laws & regulations regarding businesses, making it an attractive choice for entrepreneurs looking to get their ventures off the ground. In addition to having a high rate of business success, Delaware also boasts one of the most competitive tax rates in the nation. Businesses can benefit from low corporate taxes, no personal income tax, and no inventory taxes. These low taxes can help businesses remain profitable & reinvest in their operations.
Finally, Delaware is home to the Delaware Limited Liability Company (LLC) formation fee, which is among the lowest in the nation. This fee makes it easy for entrepreneurs to set up their LLCs & begin doing business quickly.
Illinois
The state’s tax rates are also relatively friendly to small business owners. Illinois’ corporate income tax rate is currently set at 7.99%, and there are several exemptions available to entrepreneurs, including sales tax exemptions on products used in manufacturing & research, and development. Additionally, small businesses in Illinois may qualify for the Angel Investment Tax Credit Program, which provides investors with a 25% tax credit when they invest in qualifying small businesses.
In terms of forming an LLC, the fees are quite reasonable in Illinois. To form an LLC in Illinois, you’ll need to file Articles of Organization & pay a $150 filing fee. If you’re looking for a great place to start your business, consider setting up a shop in Illinois.
Conclusion
Start your journey today by researching each of these states and learning more about their unique advantages and offerings. With dedication & hard work, you’ll be well on your way to becoming a successful business owner!
