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Here are the 10 best — and 10 worst — US states to start a new business, according to a new report

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United StatesThe financial site WalletHub recently released a study on the best and worst states to launch a business.

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  • A new report from financial website WalletHub looked at which states were the best for starting a business. 
  • The study analyzed states according to metrics like access to resources and potential business costs.
  • Here are the top 10 best and worst states to start a business.
The 10 bestUnited StatesThe financial website WalletHub recently ranked the 50 states according to which ones were the best and worst for starting a business.

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Where you start a business can make a big impact on how well it fares. 

A new WalletHub study evaluated states across three metrics: “Business Environment” looked at 14 factors ranging from five-year business survival rate to the average length of the work week. “Access to Resources” considered 6 factors, like the amount of venture capital investment per capita and the college-educated share of the population. While “Business Costs” examined seven types of costs including office-space affordability, labor costs, and state and local tax rates. 

For those who are entertaining thoughts of launching a new business, Insider did the homework for you. Here are 10 best states to launch a business, according to WalletHub. 

 

1. UtahDowntown Salt Lake CityUtah has a wealth of natural resources and a corporate tax rate of 4.85%, according to Tax Foundation.

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Utah earned the highest overall score for starting a new business according to WalletHub.

Business Environment: 7 out of 50

Access to Resources: 1 out of 50

Business Costs: 32 out of 50

2. FloridaFloridaFlorida has one of the fastest-growing GDPs in the country, according to data from the Bureau of Economic Analysis compiled by Forbes.

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Florida earned the second-highest overall score for starting a new business, according to WalletHub.

Business Environment: 1 out of 50

Access to Resources: 14 out of 50

Business Costs: 24 out of 50

3. TexasTexasTexas is considered one of the best states to launch a business for its friendly regulatory environment.

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Texas earned the third highest overall score for starting a new business.

Business Environment: 3 out of 50

Access to Resources: 12 out of 50

Business Costs: 31 out of 50

4. ColoradoColoradoColorado ranks high for its overall business environment and has a corporate tax rate of 4.55%, according to Tax Foundation.

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Colorado earned the fourth highest overall score for starting a new business.

Business Environment: 4 out of 50

Access to Resources: 7 out of 50

Business Costs: 35 out of 50

5. IdahoBoise IdahoIdaho has relatively low corporate taxes and limited business regulation.

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Idaho earned the fifth highest overall score for starting a new business.

Business Environment: 9 out of 50

Access to Resources: 21 out of 50

Business Costs: 10 out of 50

6. GeorgiaAtlantaGeorgia has a relatively low corporate tax rate of 5.75%, according to Tax Foundation.

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Georgia earned the sixth highest overall score for starting a new business.

Business Environment: 5 out of 50

Access to Resources: 26 out of 50

Business Costs: 19 out of 50

7. ArizonaAn aerial view of downtown Phoenix, Arizona at dusk with a yellow, red, and purple skyArizona ranks high on the list for a relatively low cost of living.

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Arizona earned the seventh highest overall score for starting a new business.

Business Environment: 6 out of 50

Access to Resources: 22 out of 50

Business Costs: 30 out of 50

8. NevadaDowntown Reno, Nevada.Nevada is often considered a business-friendly state for its low-regulation environment. While the state doesn’t have a corporate income tax, but does levy a gross receipts tax.

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Nevada earned the eight highest overall score for starting a new business.

Business Environment: 12 out of 50

Access to Resources: 11 out of 50

Business Costs: 26 out of 50

9. OklahomaHay barrels in Oklahoma City, Oklahoma, near Yukon.Oklahoma ranked first out of 50 for business costs according to WalletHub’s study.

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Oklahoma earned the ninth highest overall score for starting a new business.

Business Environment: 28 out of 50

Access to Resources: 19 out of 50

Business Costs: 1 out of 50

10. CaliforniaSouthern CaliforniaWhile California earned top stops for its overall business environment and access to resources, the state has one of the highest business costs in the country.

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California earned the tenth highest overall score for starting a new business.

Business Environment: 2 out of 50

Access to Resources: 2 out of 50

Business Costs: 49 out of 50

The 10 worstUnited States

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…and here are the 10 worst states to set up shop, according to WalletHub. 

1. AlaskaAlaskaBusiness costs are high in Alaska. Though the state has no personal income tax and relatively low property tax, it has a high corporate tax rate of 9.4%, according to Tax Foundation.

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Alaska had the lowest overall score for starting a new business.

Business Environment: 30 out of 50

Access to Resources: 33 out of 50

Business Costs: 45 out of 50

2. ConnecticutDowntown Hartford, Connecticut.Between 1955 and 1980 more than 50 corporations left Connecticut including IBM, Gulf Oil, Texaco, and Xerox according to Slate.

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Connecticut had the second lowest overall score for starting a new business.

Business Environment: 49 out of 50

Access to Resources: 8 out of 50

Business Costs: 46 out of 50

3. West VirginiaWest VirginiaWhile West Virginia scored at the bottom for overall business environment and access to resources, business costs are among the lowest in the country.

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West Virginia had the third lowest overall score for starting a new business.

Business Environment: 50 out of 50

Access to Resources: 50 out of 50

Business Costs: 3 out of 50

4. New JerseyRows of multi-storied homes across the river from the Manhattan skyline at sunsetNew Jersey scored the lowest overall in business costs, even compared to its neighbor New York, which came in at 47th, according to WalletHub’s study.

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New Jersey had the fourth lowest overall score for starting a new business.

Business Environment: 22 out of 50

Access to Resources: 13 out of 50

Business Costs: 50 out of 50

5. Rhode IslandNewport, Rhode IslandWhile Rhode Island ranked relatively high in terms of its access to resources the state has a tough business environment according to WalletHub.

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Rhode Island had the fifth lowest overall score for starting a new business.

Business Environment: 47 out of 50

Access to Resources: 16 out of 50

Business Costs: 36 out of 50

6. WyomingWyomingWyoming has the most startups per 100,000 residents, 214.67, which is three times more than in West Virginia, the state with the fewest at 72.2, according to WalletHub.

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Wyoming had the sixth lowest overall score for starting a new business.

Business Environment: 41 out of 50

Access to Resources: 48 out of 50

Business Costs: 28 out of 50

7. PennsylvaniaPittsburgh, Pennsylvania at dusk.The corporate net income tax in Pennsylvania is among the highest rates in the country at 8.99%, according to the Pennsylvania Department of Revenue.

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Pennsylvania had the seventh lowest overall score for starting a new business.

Business Environment: 42 out of 50

Access to Resources: 20 out of 50

Business Costs: 34 out of 50

8. North DakotaFargo, North Dakota SkylineNorth Dakota has a relatively low corporate income tax rate between 1.41% to 4.31% according to Tax Foundation.

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North Dakota had the eighth lowest overall score for starting a new business.

Business Environment: 37 out of 50

Access to Resources: 45 out of 50

Business Costs: 27 out of 50

9. VirginiaVirginiaVirginia ranks low on WalletHub’s list particularly for business costs.

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Virginia had the ninth lowest overall score for starting a new business.

Business Environment: 26 out of 50

Access to Resources: 29 out of 50

Business Costs: 38 out of 50

10. MarylandBaltimore, Maryland.While Maryland ranks high in terms of access to resources the high business costs ultimately brought down its ranking on WalletHub’s list.

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Maryland had the tenth lowest overall score for starting a new business.

Business Environment: 20 out of 50

Access to Resources: 10 out of 50

Business Costs: 48 out of 50

Read the original article on Business Insider
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