Are you planning to take the path of being an entrepreneur? Or have you not considered the idea of starting a business yet? Well, it is perhaps the time for you to think about it. Starting a business can help you find personal fulfillment in life, where you have a stable source of income, satisfaction, experiences, and opportunities which can allow you to be as dynamic as the world. Entrepreneurs have the qualities of being innovative, flexible, open to opportunities, creative, and dedicated to making a positive difference in life.
If you are planning to start a business, you must connect it with your passion and interest in order for you to enjoy your journey as an entrepreneur. If you are about to start the first phase of your business startup, here are some best states that you could consider which can help you find your principal location for your small business.
Also, one of the important decisions you will need to make is to choose the legal structure of your business. As advised by LLCGuys – the most common one is a Limited Liability Company (LLC). But you can also choose a corporation, s corp, sole proprietor and so on.
However, before we proceed to look at the best states for your small business, here are the basic things to consider when looking for one.
- Tax Climate
When looking for the best state for your small business, it is essential to check if the state is tax-friendly by evaluating the status of how the state structures or manages its tax system. This element will help you have a clear grasp and insight into which state provides a favorable tax for small businesses.
- Consumer Personal Spending in the State
Looking at consumer spending in the state reveals the business owner’s market potential, which states or estimates whether the business will successfully take off in accordance with the likelihood of the consumers’ voluntary consumption of the goods or services your business will offer
- Check the rate of new entrepreneurs
This criterion indicates if the environment will be beneficial for new entrepreneurs.
- Refer to the business survival rate over 5 years
It is also important to look at the state’s business survival rate for business owners to estimate if their business is capable of surviving in their chosen state.
- Evaluate the labor costs
As business owners, we are required to hire employees to boost the business’s flow. Therefore, we must check the labor costs in the state in order for us to be aware of the amount we, the business owners, need to pay for labor.
Here Are The 5 States
If you are looking for the best states for your business startup, here are the top 5 states following the order of their ranking, including the number of new businesses and new entrepreneurs per 100k population, the value of new business loans per business, and the business survival rate.
Also, if you’re not sure how to start your own LLC – no need to worry, there are literally dozens of companies that specialize in this field. For example, Northwest Registered Agent is an experienced and top-rated company that can help with any of your LLC needs. In case you want to know more, you can always read more about Northwest Registered Agent here.
And now without further ado, let’s jump to those 5 best states:
- Idaho
New Businesses per 100k population: 172
New Entrepreneurs per 100k population: 371
Value of New Business Loans per business: $9,091
Business Survival Rate: 58%
Idaho has been ranked number one among the best states for entrepreneurs. It is considered one of the best states for starting a business because, in terms of the economy, Idaho is exhibited as one of the strongest and is regarded as a growth or development-oriented state because of its low taxes and balanced state budget, and common-sense regulatory environment.
Here are the advantages you can get when planning to start a business in Idaho.
- Gives prominent benefits for Corporation or LLC structured businesses
- Gives the benefits of business tax credits.
- Montana
New Businesses per 100k population: 172
New Entrepreneurs per 100k population: 370
Value of New Business Loans per business: $9,730
Business Survival Rate: 60%
Montana is in second place among the best states for starting a small business. If you are planning to form your LLC in Montana, you are in a good place. They offer the following services for businesses:
- Business owners are not required to pay or collect sales tax
- The state gives a light regulatory burden
- Offers affordable and friendly priced property for businesses
- California
New Businesses per 100k population: 136
New Entrepreneurs per 100k population: 436
Value of New Business Loans per business: $7,857
Business Survival Rate: 58%
California is an ideal place to start a business. It has a huge population and is known for its peaceful and steady weather. Their economy is also in an excellent state, which benefits their population very well. Therefore, if you start a business there, you will have the advantage of having excellent market potential. Furthermore, they also have diverse industries and favorable weather, which can help your business’s productivity.
- North Dakota
New Businesses per 100k population: 136
New Entrepreneurs per 100k population: 362
Value of New Business Loans per business: $12,267
Business Survival Rate: 56%
North Dakota is considered one of the best business environments because of a variety of incentives and benefits those businesses can enjoy. To be specific, here are some of the benefits you may expect if you start a business in North Dakota.
- Excellent Economic Growth
- Provides a Tax-friendly environment for businesses
- Gives high quality of life
- Offers opportunities in terms of education, economic, health, and community; and lastly
- Provides a good environment for business startups
- Maine
New Businesses per 100k population: 130
New Entrepreneurs per 100k population: 351
Value of New Business Loans per business: $8,667
Business Survival Rate: 57%
Maine is also an ideal location for establishing a small business, as it provides a favorable environment for any kind of business, especially local or small businesses. The state of Maine would regard their local or small businesses as not just a part of the economy but also a part of their culture. Furthermore, the specific advantages you can get if you choose to process your small business startup in Maine are noted below:
- Small businesses face favorable and reasonable regulations.
- Receiving fair access to working capital and
- Small businesses experience support from the community.
Last Word
So whichever state you choose from these 5 – we can almost guarantee that you won’t be disappointed.
Remember, the hardest step is the first one – to actually start your LLC. And nowadays, when there are many quality LLC formation companies – starting is easy.
