Over the past two years, businesses in the USA have faced countless challenges. Despite this, a staggering number of Americans opened a new business during the course of 2020 according to data released by the U.S. Census Bureau. While new business applications continue to stream in nationwide, there are definitely some states that are naturally more conducive to new business ownership than others. Let’s have a closer look at three of these top states to start a new business venture in.
Texas has Experienced Exceptional Growth
It should come as no surprise that Texas is on the list of top states to start a new business in. The Lone Star State has experienced tremendous growth over the past ten years. It currently has the second-highest growth rate of all states in terms of GDP, but it also boasts a surprisingly low tax burden. In addition to this, Texas also sports a reasonable cost of living, high-level venture capital, and a very skilled overall workforce. If you are looking to service the construction industry, Texas should definitely be on your list of places to consider as it has the most construction workers in the country after California. Other flourishing industries include IT, banking, oil & gas, and tourism.
Florida is Very Tax-Friendly
There are many reasons why Florida is considered one of the best places to start a new business in. Like Texas, it is considered to be extremely tax-friendly due to its zero income tax for individuals. Even corporate entities only pay 5.5% income tax currently. In Florida, workers comp insurance is almost always compulsory, making it increasingly easy for new business owners to safeguard their bottom line by protecting their employees. Other reasons to start a new business in the Sunshine State include the fact that many successful businesses in the state were started with no more than $5,000 capital. The tourism industry is particularly strong in Florida although other sectors like financial services, life sciences, and agriculture also growing rapidly.
Utah has a Pile of Venture Capital
While Utah may not be the first state that comes to mind when considering a location for a new business, it definitely should make your short list. The state has experienced mammoth growth in recent times and has a vast amount of venture capital available for start-ups. During the course of 2019 alone, 101 businesses received funding valued at approximately $11.5 million. Additionally, Utah’s tax system is very beneficial to small businesses and in particular, corporations. Add to this the fact that Utah is one of the top spots for real estate, and you are left with an entire list of reasons why the Beehive State is the best place to start your new business venture.
Starting a new business can be a life-changing endeavor. By knowing where the best places are to start a new business, you can help provide your venture with the best possible chance of long-term success.