Best States for Small Business

One of the important considerations while starting a small business is the location and as a small business enthusiast you need to find out the best states for small business.

The Small Business Survival Index released every year by the Small Business & Entrepreneurship Council lists down the best states for small businesses based on factors like income tax rates, regulatory costs, labor costs and availability, government support and spending etc.

Top 10 Best States for Small Business

1. South Dakota – With zero personal and corporate income and capital gains tax rates, lowest crime rate in the United States, South Dakota tops the list as the best state for starting a small business.

2. Nevada – Offers everything to small business enthusiasts that South Dakota offers.  The downside is the high crime rate and high energy costs.  If you are planning to start a business that requires lots of gas, diesel or electricity, Nevada is not the place for you.

3. Texas – The second runner up in the list; Texas also has zero individual and corporate income and capital gains tax.  The negative factors for Texas are higher property taxes, state and local excise and sales taxes, crime rate and a good number of health insurance mandates that taken together makes situation more difficult for a small business as compared to the top two.

The remaining 7 best states for small business are:

4. Wyoming

5. Washington

6. Florida

7. South Carolina

8. Colorado

9. Alabama

10. Virginia

While these rankings are a good indicator of overall environment for small businesses; individual businesses may find it somewhat different.  Feel free to share your opinion about the best states for small business according to your personal experience.

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Posted by Vikrant on Feb 5 2010. Filed under Featured, Small Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry