The 10 best states for starting a small business

Published June 9, 2023 1:02 PM EDT 2 Min Read

Small businesses — Polina Tankilevitc from Pexels

There are a number of reasons a small business could fail, but instead of trying to solve for why, frustrated enterprise owners may need to be solving for where.

In an effort to help guide hopeful business leaders, financial insights website Capital on Tap conducted a new research study to determine the best and worst states for starting a small business. The study analyzed eight factors including new firm survival rates, corporate tax rates, and the number of entrepreneurs per state to determine the viability of launching a new operation.

When compared with all other states, Florida provides the most jobs created by startups per 1,000 residents living in the state.

Texas is the second-best state to start a business due to its small-business-friendly tax framework — all businesses with revenue less than $1.08 million, or total tax liabilities of less than $1,000, owe no franchise tax. Additionally, small businesses in Texas secured the fifth-highest average loan per employee at $4,811.

Paola Peralta

Associate Editor

Paola Peralta is an Associate Editor at Employee Benefit News and has been with the team for five years. She is a proud UCF journalism graduate who got her start through a Dow Jones News Fund … Read full bio

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