Money Makers: Most and Least Expensive States to Start a Business

 A new study found Minnesota is the No. 1 most expensive state to start a business.

Inflation and rising interest rates have many business owners closely watching their expenses and cutting costs. Despite the economic uncertainty, the Census Bureau reported an unprecedented number of businesses have formed in recent years -- including 429,800 in February 2023. To be one of the few entrepreneurs that survive long term – and until the economy rebounds -- it is critical they factor in the cost of doing in each state before deciding where to operate their business. 

Simplify LLC today released a study on the Most and Least Expensive States to Start a Business using the most recent data from Bureau of Labor Statistics, Small Business Administration, and Census Bureau.

Myriad metrics were analyzed including the cost of labor, corporate tax rates, available commercial real estate, commercial electric bills, and the health of the business environment in all 50 states and D.C.

Key Findings:

·         Nevada No. 1 Least Expensive: Business owners pay workers $51,885 on average annually, pay 0% corporate tax rate, and the average monthly commercial electric bill of $463.41.

 

·         Minnesota No. 1 Most Expensive: Business owners pay workers $60,958 on average annually, pay 9.8% corporate tax rate, and pay an average monthly commercial electric bill of $673.61.

 

·         Nationally: The West is the best region for savings, the Northeast is the most expensive region.

 

·         5 Most Expensive States: Minnesota, New York, Louisiana, Alabama, and Alaska.

 

·         5 Least Expensive States: Nevada, Colorado, Arkansas, Montana, and North Carolina.