Some states make it much easier to start a new business than others. Four of the easiest states are PIA Western Alliance states. They are Nevada, Montana, Idaho and Arizona. They rank — in order — 1, 4, 8 and 9.
Most businesses start small. The U.S. Small Business Administration (SBA) said it costs about $3,000 to start a microbusiness. Running something from home is $2,000 to $5,000.
The bad news is that it’s tricky to start one. The U.S. Bureau of Labor Statistics (BLS) said in the last 20 years, 20% of new businesses failed in the first two years. The good news is that 22% were still in operation 20 years after they began.
According to the small business accountants and attorneys at Simplify, there are a number of reasons businesses succeed and fail. Location is important. So is the corporate income tax structure of a state, how much labor costs, the availability of workers and many other reasons.
The most expensive states to start a new business are Minnesota, New York, Louisiana, Alabama and the PIA Western Alliance state of Alaska is 47th.
Here are the least expensive.
1. Nevada
Total points: 12,408
Average corporate income tax rate: 0
LLC filing fee: $75
Commercial spaces available per 100,000 people: 170.93
Average annual wage: $51,885
Labor force participation rate: 74.7%
Average monthly commercial electric bill: $463.41
Small business lending per 100,000 people: $27,770,436
Net rate of business births in 2021: 2.05
2. Colorado
3. Arkansas
4. Montana
Total points: 11,064
Average corporate income tax rate: 6.75%
LLC filing fees: $70
Commercial space available per 100,000 people: 39.94
Average annual wage: $47,834
Labor force participation rate: 75.6%
Average monthly commercial electric bill: $382.07
Small business lending per 100,000 people: $58,174,126
Net rate of business births in 2021: 1.8
5. North Carolina
6. South Dakota
7. Wyoming
8. Idaho
Total points: 10,741
Average corporate income tax rate: 5.8%
LLC filing fees: $100
Commercial spaces available per 100,000 people: 69.92
Average annual wage: $48,422
Labor force participation rate: 75.6%
Average monthly commercial electric bill: $369.97
Small business lending per 100,000 people: $38,128,846
Net rate of business births in 2021: 2.48
9. Arizona
Total points: 10,704
Average corporate income tax rate: 4.9%
LLC filing fees: $50
Commercial spaces available per 100,000 people: 119.28
Average annual wage: $55,176
Labor force participation rate: 73.7%
Average monthly commercial electric bill: $769.97
Small business lending per 100,000 people: $27,486,437
Net rate of business births in 2021: 1.61
10. Kentucky
The other PIA Western Alliance states:
22. Washington
Total points: 9,830
Average corporate income tax rate: 0
LLC filing fees: $200
Commercial spaces available per 100,000 people: 66.73
Average annual wage: $68,312
Labor force participation rate: 75.6%
Average monthly commercial electric bill: $553.80
Small business lending per 100,000 people: $29,720,785
Net rate of business births in 2021: 1.41
25. California
Total points: 9,485
Average corporate income tax rate: 8.84%
LLC filing fees: $70
Commercial spaces available per 100,000 people: 150.35
Average annual wage: $67,167
Labor force participation rate: 73.7%
Average monthly commercial electric bill: $992.86
Small business lending per 100,000 people: $37,718,696
Net rate of business births in 2021: 1.3
29. New Mexico
Total points: 9,313
Average corporate income tax rate: 5.40%
LLC filing fees: $50
Commercial spaces available per 100,000 people: 26.51
Average annual wage: $47,244
Labor force participation rate: 69.2%
Average monthly commercial electric bill: $532.54
Small business lending per 100,000 people: $20,473,790
Net rate of business births in 2021: 0.74
30. Oregon
Total points: 9,485
Average corporate income tax rate: 7.10%
LLC filing fees: $100
Commercial spaces available per 100,000 people: 163.54
Average annual wage: $57,238
Labor force participation rate: 74.8%
Average monthly commercial electric bill: $517.10
Small business lending per 100,000 people: $32,971,006
Net rate of business births in 2021: 0.55
47. Alaska
Total points: 8,054
Average corporate income tax rate: 5.30%
LLC filing fees: $250
Commercial spaces available per 100,000 people: 29.48
Average annual wage: $61,352
Labor force participation rate: 75.3%
Average monthly commercial electric bill: $746.45
Small business lending per 100,000 people: $43,935,016
Net rate of business births in 2021: 1.4
Source link: Simplify — https://bit.ly/3MSpP3n
