The 6 Best States to Start a Business

The first question you’ll be asked when you mention you’re looking to start a business is usually the following:

“Wow, interesting! What is your business going to do? What are you going to sell?”

“We have a group of silverback gorillas who try to replicate famous paintings. It’s going to be great!”

Business plan

In the list of W’s and one H, “what” is always asked first. Then you may get a “when is your business going to open” or “why are you choosing this business”. You will rarely get a “where is your business going to open and operate”.

That’s usually because people assume you’re going to start your business where you are right now, and it makes sense. Moving across the country to start a business may be tough but it’s worth looking into.

There are definitely some states better suited for entrepreneurs and we run through that list below.

Missouri

Why not start your business where Lewis and Clark started their great expedition? Missouri is a fantastic state to start a business because of its high growth and business survivability rate.

It also has a low cost of living, ranked fourth in the country by the World Population Review. The state also boasts a low unemployment rate of just 3%, meaning you’ll be able to find the right talent for any people you need to hire.

The Show Me State is already home to a large number of small business owners and entrepreneurs so you’ll be able to find an ideal network and support system while opening up your business.

Alaska

Let’s head up to the country’s most northern state and check out Alaska. Home to Denali State Park, Mount McKinley, and the Iditarod Dog Race, Alaska is already an outdoor lover’s dream.

It’s a dream for business owners too who are willing to brave the distance and climate. Alaska has an incredibly high annual level of income for sole proprietors with a surprisingly solid labor market and business survivability rate.

Plus, the Alaska Permanent Fund gives about $1,600 to each resident of the state through their oil royalties.

Florida

Going back to the opposite end of the country (literally) the Sunshine State is a great place for you to start a business along with visiting Mickey Mouse and his friends.

Florida is blessed with the third highest number of small businesses in the country and the state hands out billions in small business loan each year. Put that together with no income tax, and you’ve got yourself a prime spot for your new business. The state has a number of major airports, making business travel convenient and easy.

Though you might think of Florida having a high cost of living, outside the big cities like Miami and Tampa you’ll find living to be pretty inexpensive.

Texas

The state that could very well be its own country, the Lonestar State tops many lists for best state to start a business. With constant growth, proven ability to weather economic downturns, low unemployment rate, low cost of living, no corporate tax, no income tax, the nation’s highest business survivability rate, and incredible startup financing, you should head to Texas.

Texas makes it easy to start a business, but there are still plenty of steps that need to be taken in order to get things rolling. Fear not though, as there are a large number of business experts and an infinite supply of networking opportunities to help get you started. 

Colorado

Another outdoor lover’s paradise, Colorado is good for much more than skiing and snowboarding. The state boasts low startup costs and a great labor market, with the majority of workers holding a bachelor’s degree.

The state is also filled with young talent and minds, having been a top destination among the millennial generation. There are plenty of networking opportunities as well and the state provides many different events to promote small business growth.

North Dakota

Traveling to North Dakota may have never crossed your mind, but you should look into starting a business there. If you can bear to be far away from people you know and likely living in the middle of nowhere, the state has plenty of other business benefits to offer.

The Peace Garden State has the highest 10-year survival rate in the country and an almost nonexistent unemployment rate, hovering under 3%. With an incredibly low cost of living, it could be your next great destination. 

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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