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:

^{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.}