5 States that are Very Friendly to Small Businesses
We're a mobile society. Entrepreneurial nomads really can choose to pick up and work elsewhere, whenever they choose. So for entrepreneurs looking to save money, moving to a state that offers a better small business climate can be worth the big change.
When it comes to measuring a state's business climate, there are several factors to consider: the level of economic growth, the amount of regulations, and the education level of the workforce. Look at all those factors, and you've got a sense of whether or not you're dealing with at a business-friendly state.
Here are five of the states who are known for being most friendly to businesses:
1. Texas. Texas if you didn't know it, is a great place to start a global enterprise. The Lone Star State has the most internationally focused manufacturing sector in the country. In fact, the state has the highest export sales per worker than any of the 50 states. The cost of labor in Texas is another enticing charmer: it has the lowest workers' compensation costs of any state. No income or capital gains tax for individuals, either.
2. Colorado. The Centennial State is known as one of the fastest-growing states -- its population grew roughly 13 percent over seven years. The state ranks positively in capital gains, consumption, and property taxes. Also, a good number of highly educated people live and work in Colorado, which equals high-income levels.
3. Virginia. This state for lovers is also known for attracting highly educated people, thanks to the fact that it leads nationally in information technology. Virginia has a significant number of IT jobs in non-IT industries. And low taxes help too: the state has the lowest in the nation for consumption taxes.
4. Washington. The Evergreen State has a strong economy and good overall value. Small businesses here seem to enjoy a considerably high level of success and longevity. The state uses a plethora of alternative energy sources and is actively developing more energy-efficient methods. Washington's manufacturing sector, focused mainly on tech, boasts high productivity. Of course additionally enticing is the fact that Washington has very low taxes: no personal or corporate income or capital gains taxes.
5. Utah. Many of us don’t think of Utah as a destination for entrepreneurial risk-taking, but it indeed has some rapidly growing endeavors. Utah is a breeding ground for start-ups – both successful and unsuccessful. But who cares? It’s ripe for the ambitious and visionary.