Top 5 States for Small Business: Florida Takes the Crown!

Hey there! Have you ever wondered which U.S. states are the best and worst for starting a small business? Well, Capital on Tap, a business credit card company, conducted a study to answer that very question.

They analyzed eight factors including new firm survival rates, corporate tax rates, and the number of entrepreneurs per state to determine which states are the most viable for small businesses.

So, who came out on top? Florida! With a corporate tax rate of just 5.5%, businesses can keep more money in their pockets. Plus, they had the third-largest amount of small business loans secured per total number of employees at $4,913. On top of all that, Florida provides the most jobs created by startups per 1,000 residents living in the state.

Not far behind was Texas, which has a small-business friendly tax framework. In fact, it's one of only five U.S. states that don't levy any business tax or personal income tax. That's a big win for small business owners! Plus, small businesses in Texas secured the fifth-highest average loan per employee at $4,811.

Other states that made the top five were Idaho, Nevada, and North Carolina. The study took into account several factors, including the percentage of adults becoming entrepreneurs per month, jobs created by startups per 1,000 people, percentage of new firms surviving one year after founding, and number of new employer business per 1,000 people.

Starting a small business comes with significant risks, but by choosing the right state, entrepreneurs can increase their chances of success. The study by Capital on Tap provides valuable insights that can help you make an informed decision about where to start your small business. So take advantage of the small-business-friendly tax frameworks and resources in these top-ranked states and create a favorable environment for your business!