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The Easiest versus Most Challenging States to Start a Business

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What are the best and worst US state to start a business? According to U.S. Bureau of Labor Statistics data, about a fifth of all startup businesses don’t survive past year one of operation, and nearly half never make it to their fifth anniversary. There are a number of reasons why a business might fail, including: bad management, bad location, access to resources, and cost of doing business. A state that provides great conditions for business creation — access to cash, skilled workers, affordable office space, etc — can help new business ventures become more successful faster.

Key Indicators to Start a Business

Key indicators were reviewed to help determine which were the best and worst states to operate a business. Some of these indicators are: Business Environment Length of Work Week Share of Committed Workers Growth in Number of Small Businesses Business Startups per Capita Growth of Business Revenues Five-Year Business Survival Rate Entrepreneurship Index Job Growth Access to Resources Financing Accessibility Venture Investment Amount per Capita Human-Capital Availability Share of College-Educated Population Working-Age Population Growth Business Costs Office-Space Affordability Labor Costs Cost of Employer-Based Health Insurance Taxes Cost of Living

Best and Worst Business Environment by State

1 Texas 2 California 3 Utah 4 North Dakota 5 Florida 6 Colorado 7 Georgia 8 Montana 9 Nevada 10 Arizona … 41 Kansas 42 Connecticut 43 New Mexico 44 Mississippi 45 New Hampshire 46 Vermont 47 Pennsylvania 48 Alabama 49 Rhode Island 50 West Virginia

Best and Worst Access to Resources by State

1 Utah 2 Washington 3 New York 4 Connecticut 5 Massachusetts 6 California 7 Illinois 8 Maryland 9 New Jersey 10 Minnesota … 41 Alabama 42 Kentucky 43 Ohio 44 Wisconsin 45 Tennessee 46 Idaho 47 Indiana 48 New Hampshire 49 Vermont 50 Hawaii

Best and Worst Business Costs by State

1 Oklahoma 2 Mississippi 3 Michigan 4 West Virginia 5 Kentucky 6 South Dakota 7 Idaho 8 Montana 9 Alabama 10 Nebraska … 41 Washington 42 Delaware 43 Hawaii 44 Massachusetts 45 Maryland 46 Connecticut 47 California 48 Alaska 49 New York 50 New Jersey Business is not a one-size fits all approach. The needs to operate a fast food chain are different than those for an advertising agency. Also, certain technologies have somewhat equalized things a bit, such as Internet, social media, global shipping, telecommuting, and free Wi-Fi. These rankings are just guidelines to help you make business decisions related to location. 1040TaxBiz can help you find the best location for your business and assist you with completing returns. Complete a contact form here for a sales associate to speak with you about how our resources can help you build a tax business.

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