ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

10 Best States in the US To Start a Business in 2024

Location is pivotal for setting up a business as it determines accessibility of the resources, cost of setting up, transportation costs, etc.
PUBLISHED FEB 27, 2024
Cover Image Source: US city (reprensentative image) | Kelly | Pexels
Cover Image Source: US city (reprensentative image) | Kelly | Pexels

Best states in the US to start a business in 2024 

Manhattan | Getty Images | Gary Hershorn
Manhattan | Getty Images | Gary Hershorn

Entrepreneurs are increasingly understanding the importance of location when it comes to launching a business. Location is pivotal in many ways as it determines accessibility of the resources, cost of setting up, transportation costs, etc. Needless to say, the state's tax policies also matter a lot when setting up a business. Besides having strong economies, states should also be able to offer more when it comes to setting up a business. Here are the top 10 states in the US that are ideal for setting up a new business, according to WalletHub's annual report. These states offer low tax rates, low filing costs, and more.

1. Utah

 Salt Lake City, Utah | Getty Images |  Tom Smart
Salt Lake City, Utah | Getty Images | Tom Smart

According to WalletHub, Utah is a great place to start a new business. The reason why Utah has clinched the top position is because the state has great tax policies. Utah has a flat 4.85% individual income tax rate and a flat 4.85% corporate income tax, which are the lowest in the country. Additionally, Utah also has low filing fees, which is around $70 for the form to file the entity, and $15 per year for the annual reports. Utah was recognized as one of the best states on the “Digital States Survey” from the Center for Digital Government.

2. Georgia

Representational Purposes | Phil | Pexels
Georgia is known for having "strong clusters" of businesses (Representative photo) | Phil | Pexels

Georgia is known for its stable economy that ensures economic development and a free market-oriented economic policy with low tax rates. Georgia is also known for being extremely diverse, so it's safe to say that there's something for everybody in the state of Georgia when it comes to starting their venture. The state has one of the highest entrepreneurship rates and there's a lot of potential for growth in the state. Georgia is also known for having "strong clusters" of businesses that specialize in the same field. So, the best way to break into the market is to fit into these clusters.

3.  Florida

Representational  Purposes | 
Mikhail Nilov | Pexels
People are attracted to high GDP growth rates (representative image) | Mikhail Nilov | Pexels

Florida is known for having one of the highest real GDP growth rates in the country at over 4%. While Florida has a lot of old population, the labor force is doing great. Florida's working-age population, between ages 16 and 64, is growing faster than in other states. Therefore, finding employees for your business in Florida will not be a problem. Of course, the state also boasts low tax rates and no personal income tax as well as no corporate income tax on subchapter S-corporations and Limited Partnerships.

4. Idaho

Lewiston hills, IDAHO | Getty Images | Francis Dean
Lewiston Hills, Idaho| Getty Images | Francis Dean

Idaho is a business-friendly state which also has low tax rates and a strong economy. The state also has growth potential and boasts great infrastructure. There are seasonal regulations when it comes to launching a business and the state GDP has also grown at an annual rate of 1.8% each year. There's a lot of scope for opening a business as the state has a great network of entrepreneurs who are ready to support each other. The cost of registering for a business in Idaho is $100 to file the Certificate of Organization online and $120 to file by mail.

5. Nevada

 The Sphere, Las Vegas, Nevada | Getty Images | George Rose
The Sphere, Las Vegas, Nevada | Getty Images | George Rose

Nevada is known for having one of the most favorable tax laws in the country. The state has no personal income tax and also no corporate tax. According to Dealroom.co data, in 2023, Las Vegas alone hosted 625 startups. Nevada also has really limited regulations and annual fees. It is also an extremely business-friendly legal state. On top of everything, the state also has great infrastructure and is known for protecting the privacy of business owners. Nevada's lack of state income tax is because tourists pay most of the state's taxes. Therefore, it's no doubt a great place to launch a business. 

6. Arizona

PHOENIX, ARIZONA | Getty Images | Brandon Bell
Phoenix, Arizona | Getty Images | Brandon Bell

Arizona is known for being one of the top states to start a business mostly because of the low rates. The individual income tax rate in the state is 2.5%. The state is also known for not charging on Social Security benefits. Arizona boasts a really low cost of living and has limited and reasonable regulations. The workforce in Arizona is highly educated, so you will easily find a balanced team to work on the goal of your business. 

7. Colorado

 Denver, Colorado | Getty Images | Raymond Boyd
Denver, Colorado | Getty Images | Raymond Boyd

Colorado is known for having favorable tax laws and one of the lowest income tax rates in the country, which is 4.40%. The government is also welcoming new industries and new businesses. The state is also now one of the most educated states in the country which is always a piece of good news when looking to start a business in the state. Colorado offers a great quality of life with a diverse environment. Colorado is also known for having many venture capital firms. 

8. Texas

Texas City, Texas | Getty Images |  Brandon Bell
Texas City, Texas | Getty Images | Brandon Bell

Low tax burden is one of the leading reasons why Texas is considered a good place to start a business. The state is also known for its business-friendly climate. Access to capital is another reason why people look at Texas when planning to start a new business in the US. Texas also offers unique and diverse business options. The state boasts an educated workforce. Apart from this, Texas is known for giving easy access to global markets. 

9. North Carolina

Charlotte, North Carolina | Getty Images | Isaiah Vazquez
Charlotte, North Carolina | Getty Images | Isaiah Vazquez

The state has a really low corporate income tax rate and is known for having fewer regulations. The corporate tax rate is around 2.5% which is on the lower side. The cost of setting up a business in North Carolina is also pretty low and reasonable. The talent pool in the state is also diverse which means finding a good workforce won't be a task. North Carolina is also known for having great infrastructure which is always great for new business owners. 

10. Tennessee

Nashville, Tennessee | Getty Images | Jason Kempin
Nashville, Tennessee | Getty Images | Jason Kempin

Tennessee is also ranked as one of the best states in the country to open a business in the year 2024. The state is known for its easy and pro-business climate with low regulations and great infrastructure. Tennessee is known for having low corporate tax rates and does not have any individual income tax. The state is well known for its transportation network—one of the best in the country. The state has seen an influx of people from other places because of the great business climate.

MORE ON MARKET REALIST
Back in 2022, the actress was seen buying coffee for people in the queue behind her.
3 hours ago
A British Columbia member of the warehouse club literally sparked a food fight when they posted a photo of the item.
6 hours ago
Her great-grandfather had first gifted it to her grandmother over 70 years ago.
7 hours ago
Roth sold the iconic photo at an auction for 180 Ether to 3F Music, a music studio.
10 hours ago
Janet Valenti wanted to get the money as anybody would but the unfortunate fate of the ticket barred her from claiming the money for thirty-one years. 
21 hours ago
The customer in a video explained how Walmart is pressuring customers into "downloading the app and getting the membership".
1 day ago
Sadler said while the anchor's job was a dream come true for her, the pay gap was too hard for her to swallow.
2 days ago
The notes with printing errors tend to be worth way more than the face value.
2 days ago
Her low-profile approach also stands in contrast to Bezos’s high-visibility commitments.
4 days ago
In 2022, a Kentucky woman claimed that picking up a dollar bill from the ground nearly killed her.
4 days ago
She shared a video that demonstrated how she got fed up with the slow-moving line at Walmart and decided to take action.
4 days ago
Choe shared the story of his multimillion windfall in an episode of CNBC’s The Filthy Rich Guide.
5 days ago
The H-E-B grocery store helped hundreds of customers amid a severe snow storm in 2021.
5 days ago
The dedicated teacher wanted to see his students through the final exams.
6 days ago
The man told the server that she was free to share the amount, thus the tip was split nine ways
6 days ago
The Home Depot staffer requests the individual's tax-exempt number, which the individual declines.
6 days ago
The story resonated with thousands of fans who made sure to set things right for the hardworking man .
7 days ago
She was only offered $6,600 as a “goodwill gesture” for being the winner. 
7 days ago
Perry's comments about splitting bills and the women being the breadwinner did not go down well with many.
7 days ago