Top 5 states to open the business in the U.S. in 2023
Indiana is the best state recommended by Forbes Advisor magazine to open a business in the U.S. in 2023. The rankings were based on indicators such as the business climate, the cost of doing business, the economy, and the workforce. According to the magazine, the worst state was New York because of high unemployment, prices, competition, and a relatively low survival rate of startups (76%).
The reporters of Forbes Advisor pointed out the following key aspects:
- The highest startup survival rate is in Washington, D.C. (89%), while the worst is in Hawaii (75%). The national average is 80.6%.
- Florida, Texas, and North Carolina have the fastest growth in new company startups.
- The most expensive cost of incorporating a company is Massachusetts (from $500); while the lowest one is Kentucky (from $40).
- The most competent workforce can be found in Massachusetts, Colorado, and Connecticut, which have the most employees with degrees.
Opening a business in Indiana is the best option because of such indicators:
- A low flat income tax rate of 3.24%;
- The new business survival rate of 83.6%;
- Opportunity to qualify for a variety of grants and incentives;
- Favorable business climate;
- Qualified workforce;
- Low cost of living, which is 15% below the national average;
- A lowow unemployment rate of 2.8%, indicating high labor activity of the adult population;
- As for the corporate tax, it equalst 25%.
According to Forbes, registering a company in Colorado is also a great option. Among the state's advantages:
- Income tax is 4.55%;
- The startup survival rate is 81.9%;
- A high number of startups, which shows Colorado's attractiveness to new businesses;
- Low state registration fees for LLCs;
- Opportunity to work in different niches.
As for the corporate tax it is quite high at 24%, though it's lower than in Indiana.
Forbes experts put North Dakota in third place. Notably, the state used to rank much lower and has only made significant progress in recent years.
Among the advantages of starting a business in North Dakota are:
- Income tax of 2.9% percent;
- Easy to obtain grants and funding for the projects (50% more than the national average);
- High quality of life;
- Educated population;
- A startup owner can be a foreigner.
The survival rate of startups in North Dakota is lower than the U.S. average of 78.3%, but is quite high anyway. The corporate tax rate is 24%.
Pennsylvania is the fourth on the list of the best states to start a company. It is so even though it is the most expensive in terms of cost of living.
Some of the advantages of registering a company in Pennsylvania include:
- Easy to get a loan for small businesses. The $27.7 million figure is twice the national average;
- The income tax rate is 3.07%;
- The new business survival rate is 83.3%;
- Pennsylvania corporate tax rate is 29%.
Rounding out the top five states for business startups is South Dakota. It has one of the most favorable tax climates in the U.S. For instance, the income tax is 0% and the corporate tax is 21%.
Other advantages of starting a business in South Dakota include:
- A low tax rate allows one to get more profits;
- Affordable loans;
- The cost of living is 5% lower than the national average;
- The startup survival rate is 81%.
How to start a company in the USA
To start a business in the United States in 2023, contact IT-OFFSHORE experts.