These are the 10 cheapest states that found a new company in the USA – NBC Connecticut

It is difficult to start a company, no matter where you try. Nevertheless, it can help to set up a shop in a place where the costs – from rental and labor costs to corporate taxes – are lower. If you are currently living on one of the US coasts, this could mean that you go to the country in land, as from a recently carried out ranking of the online consultant Small Business Simplifyllc.

The cheapest US state US state for the establishment of a new company in 2025 is Utah, according to Simplifyllc, which has classified every state on the basis of affordability for companies. The factors he took into account included basic business costs such as the income tax rates for the corporation and business registration fees as well as the costs and availability of employees, the average costs for commercial rent and supply companies as well as the general health of the business environment of each state.

The “bee state” has some of the lowest corporate taxes in the USA with a highest price of 4.65%as well as low supply costs and one of the lowest average annual wages of almost 64,000 USD, said Simplifyllc in the past month, referring to data from the US Bureau of Labor Statistics.

These statistics helped Utah to achieve a good result in the ranking of CNBC 2024 CNBC 2024 in which the state took 13th place.

Each of the next nine states in the ranking is either the west or middle west. There is no one on a coast.

Here are the 10 cheapest countries for the establishment of a company according to Simplifyllc:

1. Utah
2. South Dakota
3. Colorado
4. Wyoming
5. Montana
6. Idaho
7. Nebraska
8. Kansas
9. Nevada
10. North Dakota

In many cases, entrepreneurs need a loan to start with a new company. The inhabitants of Utah received $ 15.4 million from the Small Business Administration, the nation's second highest number of nation. Colorado led this category with $ 15.7 million loans per 100,000 inhabitants.

North Dakota took the second chapest in the list of Simplifyllc. Its status was strengthened by the fact that it has one of the lowest corporate tax rates of 1.4%and 4.3%and one of the highest working participation rates of 68.8%.

Simplifyllc calculated its ranking based on data from Census Bureau, the Bureau of Labor Statistics, the Federal Reserve, the National Association of Realors, SBA and Tax Foundation to rate the 50 countries in the country in eight categories:

• Corporation tax rates
• Business registration fees
• Average annual income
• Employment participation
• Percentage of adults with at least one bachelor's degree
• Average monthly commercial electrical invoices
• Average rent from the number of square meters for commercial real estate
• Quantity of small business loans per capita

A lack of money is usually the greatest obstacle for most potential entrepreneurs who think about the introduction of a new company. It is also the most common reason why companies fail in the end. For this reason, it is so important for entrepreneurs to take their finances into account thoroughly – both how much money they spend and how far their means they can get – before they decide when and where a company should found, experts say.

“For entrepreneurs who have the opportunity to choose where they want to found their business, it is clear that certain states can save money in various business -related areas, which could help to drive their company to the next level,” said Simplifyllc.

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