Capital on Tap, a business credit card expert, has conducted a new research study to determine the best and worst US states for starting a small business. The study analyzed eight factors including new firm survival rates, corporate tax rates, and the number of entrepreneurs per state to determine the viability of starting a small business in each state.
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Florida
Florida emerged as the best state to start a small business with a 5.5% corporate tax rate, allowing more money to flow back into the business, and the third-largest amount of small business loans secured per total number of employees at $4,913.
When compared with all other states, Florida came out on top as providing the most jobs created by start-ups per 1,000 residents living in the state. This factor not only shows that businesses in Florida are viable enough to employ staff, but that these businesses are improving the local economy.
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Texas
Texas is the second-best state to start a business due to its small-business-friendly tax framework.It is one of the only five US states that do not levy any business tax or personal income tax. In Texas, all businesses with total revenues of less than $1.08 million, or total tax liabilities of less than $1,000, owe no franchise tax. Additionally, small businesses in Texas secured the fifth-highest average loan per employee at $4,811.
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Idaho
Idaho has the eighth lowest labor cost when compared with all 50 states; a positive for a small business that may not have generated much cash flow to start. This state also has a 13.84% rate of new employer business actualisation, meaning that for every 100 business applications, nearly 14 become employers within the first two years. Idaho’s start-ups are also responsible for creating 6.1 jobs per 1,000 residents.
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Nevada
Nevada ranks as the fourth best US state to start a small business. The state performs well in areas such as start-up early survival rate, with new firms having an…
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