Missouri ranks as best state to start a business

Missouri tops the list as the best state to start a business, with just 139.43 establishment deaths per 100,000 people. Missouri has a low corporate income tax rate of just 4%, thus reducing the tax burden for business owners; as well as this, the state offers various tax incentives such as the Rebuilding Communities Program, which provides tax credits to qualifying businesses who locate or relocate within a distressed community.

In second place is Arkansas, with 162.31 establishment deaths for every 100,000th person. Arkansas has one of the lowest LLC filing fees in the country, costing just $45, with an additional fee of $150 every year. Additionally, the state has several tax incentives, including the Equity Investment Incentive Program, which allows eligible businesses to offer an income tax credit to investors who purchase an equity investment in the company.

Pennsylvania is third, with only 169.23 establishment deaths per 100,000 citizens. There are various programs in Pennsylvania that offer financial assistance to start-up companies, such as the Business Opportunities Fund and the High Performance Building Program.

Alaska takes the fourth spot, which witnessed 175.21 establishment deaths per 100,000 people. While most states require business owners to file LLCs annually, Alaska only require these to be filed biennial; this then saves entrepreneurs from lots of paperwork on a yearly basis.

In fifth place is Ohio, which had 176.08 establishment deaths for every 100,000th person. One of the benefits of starting a business in The Buckeye State is that companies with less than 250 employees and a revenue of under $10 million can qualify for the Ohio Capital Access Program, which allows small businesses to access the capital required for growth.

Kentucky is in sixth place, with 180.92 establishment deaths per 100,000 citizens. Kentucky has a range of tax incentives, including a low corporate income tax rate of 5% and a sales tax rate of 6%.

Massachusetts ranks seventh, with 183.80 establishment deaths per 100,000 people. Massachusetts has a range of tax credits, including the Economic Development Incentive Program Credit, which is in place to promote business growth in the state by offering up to $5,000 for each job created.

Alabama places eighth, with 188.56 establishment deaths for every 100,000th citizen. Alabama offers Capital Credit Law, an incentive for businesses that invest in a qualifying new project where they can receive credit for up to 5% of the capital costs.

Following closely behind in ninth place is Michigan, with 190.70 establishment deaths per 100,000 people. In The Great Lakes State, the LLC filing fee is just $50, with an additional cost of only $25 every year.

Rhode Island is last on the list in tenth place, with 201.66 establishment deaths for every 100,000th person. One benefit of starting a business in Rhode Island is that entrepreneurs have more privacy than other states when filing an LLC, as business owners aren’t required to submit personal information about their members. In addition, the state doesn’t have business franchise taxes.

On the other end of the scale, Washington is the worst state to start a business, with a staggering 541.75 establishment deaths per 100,000 people.

Chris Walton, President and CEO of Eton Venture Services, has commented: “It’s fascinating to see which states have landed in the ranking, and whether the number of new businesses in each one will rise in future due to the findings.”

“However, regardless of where your state ranks, it’s crucial to conduct thorough research into the market you wish to operate in to ensure there is a place for you; not to mention, researching the incentives in your state could provide you with financial assistance, so it’s important to see what’s available.”

This information was provided by Eton Venture Services, a team of experts who use the power of personalized service to provide business valuation.

ENDS

Methodology

Bureau of Labor Statistics was used to analyze the number of establishment deaths in each state in June 2022. These figures were weighed against the population to determine the ranking.