Agents? Company people, know someone thinking of starting one? If they live in the PIA Western Alliance states of Washington or California, getting things off the ground is going to be tough.
The business consulting company, Venture Smarter did some research and found Washington is the second most difficult state in which to start and maintain a small business.
California is ranked fourth.
This is the criteria that Venture Smarter used to make the rankings:
- Average LLC filing cost
- Annual LLC filing renewal fees
- Average corporate tax rate
- Average sales tax rate
- Minimum wage
- Average weekly wage
- Average annual commercial rent per square foot
- Labor force as a percentage of the population
New York is the most expensive with a score of 79.07 out of 100.
Washington’s score is 76.54 out of 100. The $15.74 minimum wage gives the Evergreen State the highest hourly minimum wage in the study. It costs $190 to set up an LLC, the fifth highest in the country.
Averaging 2.8% — and tied with Arizona — Washington has the 8th highest sales tax.
Fourth ranked California scored 69.79 out of 100. The Golden State has the second highest average minimum wage at $15.50. Commercial rent costs per square foot rank second. That price is $32.99 per square foot.
California also has the 5th highest corporate tax rate in the nation at 8.8%. The good news is that getting an LLC is much cheaper than other states and only costs $70.
Number one New York has per foot rent costs that are higher than all other states at $38.92 per square foot. New York also had the highest average weekly wage at $2,015.
Filing an LLC in New York is $200. It ranks fourth and is tied with Alabama. New York has the fourth highest average sales tax rate. It is 4.5%. The average hourly minimum wage is $14.20.
The most affordable state to set up and maintain a small business — should you want to move there — is Mississippi.
Source link: Insurance Journal — https://bit.ly/48UQSUh