[ad_1]
business consulting company Make your venture smarter analyzed eight indicators that can affect the cost of establishing and operating a business in each state. This includes each state’s corporate tax rate, average LLC filing fee, average commercial rent, and minimum hourly wage.
These metrics were collected for all 50 states, each scored on a 100-point scale, to reveal which states are the most expensive and least expensive for entrepreneurs.
Washington is the second most expensive state for entrepreneurs, followed by Massachusetts in third place.
The research revealed that new york The state is America’s most expensive state to start a business, with a total score of 79.07 out of 100. This state also has the highest annual commercial rent per square foot at $38.92 and the highest average weekly wage at $2,015. It costs an average of $200 to file an LLC in New York, which is tied with Alabama as the fourth most expensive in the nation.
The state has the fourth-highest average sales tax rate at 4.5% and the fourth-highest minimum wage at $14.20 per hour. The Empire State’s average corporate tax rate is 7.1% (14th highest) and average annual LLC fee is $25 (tied for 17th highest). New York’s workforce also makes up 49.7% of the population.
Washington The Evergreen State ranks as the second most expensive state to start a business with a score of 76.54 out of 100. The Evergreen State has the highest minimum hourly wage in the country at $15.74, and the fifth-highest LLC filing fee at $190. Washington’s sales tax rate is tied with Arizona for her eighth highest, at 2.8%.
Massachusetts With a score of 71.29 out of 100, it ranks as the third most expensive state to start a business. The state has the highest annual renewal LLC filing fee at $500, the third-highest minimum wage at $15 an hour, and the ninth-highest corporate tax rate at 8%.
California With a score of 69.79 out of 100, it ranks 4th on the list of most expensive states to own and operate a business. The Silicon Valley home has the second-highest minimum wage at $15.50 per hour, the second-highest average commercial rent per square foot ($32.99), and the fifth-highest corporate tax rate at 8.8%. However, her LLC filing fees in the state are the seventh lowest on average at just $70.
It received 66.83 points out of 100 and was ranked 5th. Illinois. The state has the third-highest average corporate tax rate at 9.5%, the ninth-highest LLC filing fee at $150, and the tenth-highest annual LLC fee at $75.
new jersey The state has the fourth-highest corporate tax rate at 9% and the seventh-highest average commercial rent at $22.96 per square foot.
connecticut Ranked 7th with a score of 64.35 out of 100. The state has a 9% tax rate, tied with New Jersey, for the fourth-highest tax rate, and a minimum wage of $14 an hour, the sixth-highest. minnesota With a score of 60.08 out of 100, it is the 8th most expensive state for entrepreneurs. The state has the second-highest corporate tax rate at 9.8% and the 10th-highest average LLC filing cost at $135.
texas With a score of 59.74 out of 100, it is the 9th most expensive state for entrepreneurs. The state is tied with Tennessee for having the highest initial LLC filing fee of $300. Unlike many other states, Texas does not require business owners to pay annual LLC filing fees to maintain their business incorporation.
maryland The state has the eighth-highest corporate tax rate at 8.3% and the ninth-highest average weekly wage at $1,541.
mississippi With a score of 11.87 out of 100, it is the least expensive state in America for entrepreneurs. The state has the fourth-lowest corporate tax rate at 4.0% and is one of 20 states with a minimum wage of $7.25 an hour, the lowest in the nation. It costs an average of $50 to file for your LLC in Mississippi, but the state does not require business owners to pay annual renewal filing fees.
spokesperson for Make your venture smarter He commented on the survey results as follows:
“Each state has its own complex regulatory and economic environment, which leads to differences in the cost of doing business. New York’s status as the most expensive state for entrepreneurs is due to its high cost of living and competitive Partly due to the business environment.
“According to the U.S. Census Bureau, in fact, more than 27,000 business applications were filed here in November 2023 alone, reflecting an 11.4% increase over the previous year.
“Meanwhile, Mississippi has the highest poverty rate of any state, so we want to stimulate entrepreneurship, create more jobs, and direct more money into the local economy.” It could be a deliberate move.
“This study aims to provide valuable insight into the business environment of various states and provide new entrepreneurs with the information they need to make informed decisions in their entrepreneurial journey. By understanding each state’s unique characteristics and challenges, aspiring business owners can navigate the complexities of different markets and maximize their chances of success.”
| rank | state | Average corporate tax rate | Average consumption tax rate | minimum wage ($) | Average weekly salary ($) | Average LLC filing cost ($) | LLC Annual Cost ($) | Average annual commercial rental cost per square foot ($) | Labor force as a percentage of population | Score/100 |
| 1. | new york | 7.1% | 4.5% | 14.20 | 2,015 | 200 | twenty five | 38.92 | 49.7% | 79.07 |
| 2. | Washington | 0.0% | 2.8% | 15.74 | 1,721 | 190 | 60 | 21.13 | 52.2% | 76.54 |
| 3. | Massachusetts | 8.0% | 0.0% | 15.00 | 1,917 | 275 | 500 | 25.43 | 53.2% | 71.29 |
| Four. | California | 8.8% | 1.6% | 15.50 | 1,735 | 70 | Ten | 32.99 | 49.7% | 69.79 |
| Five. | illinois | 9.5% | 2.6% | 13.00 | 1,567 | 150 | 75 | 20.02 | 51.2% | 66.83 |
| 6. | new jersey | 9.0% | 0.0% | 14.13 | 1,699 | 125 | 78 | 22.96 | 52.6% | 64.36 |
| 7. | connecticut | 9.0% | 0.0% | 14.00 | 1,817 | 120 | 80 | 21.41 | 52.3% | 64.35 |
| 8. | minnesota | 9.8% | 0.6% | 10.59 | 1,461 | 135 | 0 | 18.34 | 54.5% | 60.08 |
| 9. | texas | 0.0% | 2.0% | 7.25 | 1,480 | 300 | 0 | 21.51 | 50.4% | 59.74 |
| Ten. | maryland | 8.3% | 0.0% | 13.25 | 1,541 | 100 | 300 | 20.54 | 51.9% | 58.38 |
| 11. | arizona | 7.0% | 2.8% | 13.85 | 1,330 | 50 | 0 | 20.23 | 50.4% | 58.30 |
| 12. | colorado | 4.6% | 4.9% | 13.65 | 1,559 | 50 | Ten | 21.49 | 55.7% | 57.11 |
| 13. | nevada | 0.0% | 1.4% | 10.50 | 1,246 | 75 | 150 | 21.74 | 50.4% | 55.98 |
| 14. | missouri | 6.3% | 4.1% | 12.00 | 1,224 | 105 | 0 | 15.43 | 50.7% | 52.98 |
| 15. | south dakota | 0.0% | 1.9% | 10.80 | 1,084 | 158 | 50 | 14.79 | 53.2% | 52.63 |
| 16. | Delaware | 8.7% | 0.0% | 11.75 | 1,431 | 90 | 0 | September 16th | 49.9% | 51.53 |
| 17. | Ohio | 0.0% | 1.5% | 10.10 | 1,265 | 99 | 0 | 13.55 | 49.5% | 51.28 |
| 18. | pennsylvania | 10.0% | 0.3% | 7.25 | 1,408 | 125 | 0 | 18.41 | 50.1% | 50.27 |
| 19. | Oregon | 7.1% | 0.0% | 13.50 | 1,339 | 100 | 100 | 18.77 | 50.6% | 49.40 |
| 20. | florida | 5.5% | 1.0% | 11.00 | 1,330 | 125 | 139 | 29.55 | 50.1% | 48.48 |
| twenty one. | Virginia | 6.0% | 0.5% | 12.00 | 1,477 | 100 | 50 | 20.70 | 53.1% | 48.35 |
| twenty two. | rhode island | 7.0% | 0.0% | 13.00 | 1,334 | 150 | 50 | 17.21 | 52.3% | 48.33 |
| twenty three. | new hampshire | 8.5% | 0.0% | 7.25 | 1,462 | 100 | 100 | 18.54 | 54.3% | 47.02 |
| twenty four. | north carolina | 6.9% | 2.2% | 7.25 | 1,348 | 125 | 200 | 20.92 | 49.2% | 46.19 |
| twenty five. | vermont state | 7.3% | 0.2% | 13.18 | 1,188 | 125 | 35 | 14.57 | 53.9% | 46.05 |
| 26. | Alabama | 6.5% | 5.2% | 7.25 | 1,164 | 200 | 0 | 15.33 | 45.5% | 45.87 |
| 27. | alaska | 5.2% | 1.8% | 10.85 | 1,301 | 250 | 50 | 23.53 | 48.8% | 45.03 |
| 28. | tennessee | 6.5% | 2.6% | 7.25 | 1,264 | 300 | 300 | 18.95 | 48.0% | 44.86 |
| 29. | georgia | 6.0% | 3.4% | 7.25 | 1,376 | 100 | 50 | 19.94 | 48.9% | 43.50 |
| 30. | maine | 6.2% | 0.0% | 13.80 | 1,188 | 175 | 85 | 16.56 | 49.5% | 43.36 |
| 31. | wyoming | 0.0% | 1.2% | 7.25 | 1,145 | 100 | 50 | 14.17 | 51.4% | 43.02 |
| 32. | new mexico | 6.2% | 2.7% | 12.00 | 1,105 | 50 | 0 | 16.10 | 45.7% | 42.64 |
| 33. | Hawaii | 5.4% | 0.4% | 12.00 | 1,218 | 50 | 15 | 32.93 | 46.9% | 40.94 |
| 34. | nebraska | 6.7% | 1.4% | 10.50 | 1,165 | 100 | 13 | 14.55 | 53.9% | 40.84 |
| 35. | iowa | 9.0% | 0.9% | 7.25 | 1,176 | 50 | 30 | 14.44 | 54.4% | 40.62 |
| 36. | louisiana | 6.0% | 5.1% | 7.25 | 1,150 | 100 | 30 | 16.84 | 45.5% | 39.71 |
| 37. | wisconsin | 7.9% | 0.4% | 7.25 | 1,211 | 131 | twenty five | 15.93 | 53.3% | 39.25 |
| 38. | oklahoma | 6.0% | 4.5% | 7.25 | 1,109 | 100 | twenty five | 14.85 | 48.5% | 37.55 |
| 39. | Kansas | 5.5% | 2.2% | 7.25 | 1,155 | 165 | 55 | 17.42 | 51.8% | 36.64 |
| 40. | Indiana | 8.5% | 0.0% | 7.25 | 1,203 | 90 | 32 | 14.86 | 50.1% | 36.00 |
| 41. | idaho | 7.6% | 0.0% | 7.25 | 1,084 | 60 | 0 | July 17th | 50.0% | 35.70 |
| 42. | montana | 6.8% | 0.0% | 9.95 | 1,079 | 35 | 20 | 18.48 | 51.5% | 34.40 |
| 43. | Utah | 5.0% | 1.1% | 7.25 | 1,245 | 54 | 18 | 21.82 | 53.6% | 33.23 |
| 44. | michigan | 6.0% | 0.0% | 10.10 | 1,308 | 50 | twenty five | 15.42 | 49.7% | 33.16 |
| 45. | south carolina | 5.0% | 1.4% | 7.25 | 1,139 | 135 | 0 | 19.80 | 46.6% | 32.42 |
| 46. | arkansas | 3.8% | 3.0% | 11.00 | 1,127 | 48 | 0 | 18.44 | 45.7% | 32.40 |
| 47. | west virginia | 7.8% | 0.5% | 8.75 | 1,062 | 101 | twenty five | 12.70 | 44.5% | 29.50 |
| 48. | north dakota | 3.5% | 2.0% | 7.25 | 1,216 | 135 | 50 | 15.62 | 53.6% | 25.83 |
| 49. | kentucky | 5.0% | 0.0% | 7.25 | 1,138 | 40 | 15 | 17.24 | 45.3% | 18.89 |
| 50. | mississippi | 4.0% | 0.1% | 7.25 | 944 | 50 | 0 | 15.73 | 42.0% | 11.87 |
source:
methodology:
Data was collected on eight factors that can affect the cost of establishing and operating a business in each U.S. state. Each factor was then ranked using a 10-point scale, where the 10-point scale represented a relative index, ranking each state based on its position relative to the range of variation in other states. Based on this, each state is given a score out of 100, with higher numbers representing more expensive states for entrepreneurs.
Each state contains the following elements:
- Average LLC filing cost
- Annual LLC application renewal fee
- Average corporate tax rate
- Average consumption tax rate
- minimum wage
- average weekly wage
- Average annual commercial rent per square foot
- Labor force as a percentage of population
[ad_2]
Source link
