The best and worst states to start a business in 2025


it's starting a business on your agenda in 2025? If you don't want to launch one of the approximately 20% of businesses fail within two years, you must consider all the factors that make or break success.

And exactly where you start your own business it is one of the most essential pieces of the puzzle.

Related: Starting a small business? Here are the states where you're most likely to survive — and the least.

Entrepreneurs who strategically choose the state, city or neighborhood of their business can benefit from the different taxeszoning regulations and licensing requirements, according to US Bureau of Labor Statistics (BLS).

A new study by WalletHub compared all 50 states on 25 key indicators of startup success – factors like labor coststhe availability of human capital and how many hours make up the average work week – to find out where entrepreneurs can earn more.

Related: Want to start a small business? Here are the best states to try (and the ones to avoid).

“It is essential to set up your business in a state that will maximize your chances of it sUccess” says WalletHub analyst Chip Lupo. “The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate.”

Check out WalletHub's full rankings of the best and worst states to start a business in 2025 below:

General ranking

State

Total score

Ranking of the business environment

Access to Resource Ranking

Ordering of business costs

1

Florida

59,66

1

14

28

2

Georgia

58,62

2

27

16

3

Utah

57,84

11

2

29

4

TEXAS

56,28

3

12

34

5

Idaho

56.02

8

16

11

6

Oklahoma

55,17

16

28

2

7

Nevada

54.03

13

11

21

8

Colorado

53.98

5

10

31

9

Arizona

53,46

4

36

30

10

Kentucky

53,36

20

22

4

11

Arkansas

53,29

15

26

6

12

Tennessee

53,23

6

30

27

13

South Carolina

53.15

10

35

10

14

Mississippi

52,59

26

37

1

15

North Carolina

52,32

9

32

20

16

Montana

52.08

12

41

8

17

Alabama

52.07

18

39

5

18

California

51,42

7

1

49

19

Indiana

50.22

30

21

7

20

Louisiana

48.76

25

31

17

21

Illinois

48.17

39

3

35

22

Michigan

48.10

33

18

18

23

Maine

48.04

14

44

25

24

Nebraska

47.70

32

19

24

25

Washington

47,59

22

6

41

26

OHIO

47,47

36

23

15

27

New Mexico

47,36

34

38

9

28

South Dakota

47.13

37

47

3

29

MINNESOTA

46,88

35

9

32

30

Kansas

46.73

41

25

12

31

Wyoming

46.60

21

46

23

32

North Dakota

45.74

23

43

22

33

Massachusetts

45,55

29

4

44

34

Missouri

45,17

46

20

19

35

Wisconsin

45.01

47

15

26

36

Iowa

44.98

45

29

14

37

Delaware

44.78

27

7

43

38

Virginia

43.05

24

34

37

39

Oregon

41,52

31

24

39

40

New York

41.25

40

5

48

41

West Virginia

40.43

48

50

13

42

Vermont

39.91

42

42

33

43

Pennsylvania

39,29

44

33

38

44

Hawaii

39.20

19

49

42

45

New Hampshire

39.02

38

45

36

46

Maryland

38.93

28

17

47

47

Alaska

38.37

17

48

45

48

New Jersey

37.36

43

8

50

49

CONNECTICUT

34,63

49

13

46

50

Rhode Island

33.51

50

40

40

Note: Except for Total Score, all columns in the table above describe the relative ranking of that condition, where a ranking of 1 represents the best conditions for that metric category.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *