Which states are best to start a business? In 2021, WalletHub ranked Texas, Georgia, California, Florida, and Idaho as the top five states for starting a small business.
Do some of these states look familiar? You might have seen them in our 2021 roundup of emerging states to incorporate a business. That is to say, entrepreneurs are starting businesses. They are heading to locations besides long-standing incorporation favorites like Delaware and Nevada. More states are positioning themselves as the new “corporate darlings.” Let’s look at what makes these states the best states to start a business in 2022.
Five key factors position Texas as one of the best states to start a business.
- Favorable business climate. Texas does not have corporate or personal income tax at the state level. This allows small businesses to run their companies with low tax burdens.
- Target industry clusters. Advanced industries make up the diverse geography of Texas. For example, there is advanced manufacturing at companies like Toyota and Tesla. Texas is also a leader in energy production.
- Talent. Small businesses can hire talent from an educated workforce. Texas is home to more than 14 million diverse, highly skilled Texans.
- Infrastructure. Whether your business operates via air, land, or sea, the central location of Texas and its state-of-the-art transportation network can get you anywhere in the world you need to be.
- Quality of Life. Texas prides itself for its mix of city and country lifestyles. Residents enjoy a low cost of living and may engage in plenty of memorable activities to maintain their work-life balance.
Companies in Georgia don’t just grow. They change the landscape. The state of Georgia, and the Georgia Department of Economic Development, is full of resources. These resources are for entrepreneurs starting, growing, or financing their small businesses in Georgia.
One reason why Georgia is one of the best states to start a business is that the state offers opportunities to entrepreneurs across all walks of life.
- Women. Georgia ranks number 5 in the United States for the greatest number of female-owned firms. As a result, resources are available for women entrepreneurs.
- Minorities. The state of Georgia will direct minority entrepreneurs to the right partners. As a result, they may certify as a Minority Business Enterprise.
- Veterans. Georgia’s veterans play a key role in the state’s business ecosystem. Therefore, there are resources available for veterans in their communities.
- Youth. Young entrepreneurs welcome! Georgia has resources available to teen entrepreneurs to start and grow their business.
In addition, Georgia has a business tax environment built to benefit small businesses. Learn more about the Job Tax Credit to offset your corporate tax liability. Find even more tax credits available to entrepreneurs, too.
Every startup in the state of California deserves the opportunity to start, manage, and grow. Planning to start a business in California? You’ll find all the resources you need at the California Office of the Small Business Advocate (CalOSBA).
CalOSBA serves as the voice of small business. This means the office represents its views and interests across the state. Likewise, CalOSBA advocates for small businesses. The office helps startups get the access they need. This access is to capital, market, and networks.
Subsequently, business resources are only a click away. Some of these resources include the California Tax Service Center for assistance with income and payroll tax and CalGOLD (California Government Online to Desktops) to issue proper business licenses and permits.
The state of Florida is a small business hot spot! One of the biggest reasons why Florida is one of the best states to start a business is its corporate tax rate. The taxable rate is steadily declining from 4.458% in 2020 to 3.535% as of December 31, 2021. In addition, there is no personal income tax in Florida which lowers tax burdens for entrepreneurs.
Moreover, Florida’s warm climate paired with its small business friendliness means plenty of startups are ready to make waves. Within any given month, 0.42% of non-business owner adults are starting a business in Florida. As a result, this increases the state’s rate of new entrepreneurs.
Idaho Commerce has the tagline “Undiscovered. Find Your Opportunity.” Above all, this emphasizes the benefits of incorporating in Idaho.
The state of Idaho is an emerging state among the best states to start a business. In the same vein, the state has an educated workforce, low taxes, reliable infrastructure, limited regulations, and a business-friendly climate.
Idaho is the nation’s second fastest growing state. Moreover, Idaho is unique is in its range of incentives and grants. These are available to small business owners. As a result, qualifying businesses may receive specific tax credits and refunds.
Grants are available to fund research. Grants may also assist with market access. In addition, Idaho offers external financing options. For example, Idaho businesses may receive loans from the SBA. Industrial revenue bonds are also available for Idaho businesses.
Ready to Incorporate?
Did you decide to incorporate in one of these five states? In short, we are ready to get you on track! Give us a call at 877-692-6772 or contact us at mycorporation.com. Let’s start incorporating or forming an LLC for your small business.