Many people dream of becoming entrepreneurs, and often the biggest...
Letting technology do the heavy lifting for certain monotonous tasks...
For small and medium-sized businesses, a competitive compensation...
Financial reporting often appears to be a routine...
June 15, 2023
While there are numerous factors contributing to your startup’s success, the location you choose for your new company plays a major role, especially when it comes to the costs of launching a new business. Your business’s location can affect how much you’ll pay toward rent, utilities and taxes, or your ability to find, hire — and ultimately retain — quality talent.
That’s the idea behind the latest ranking of the least (and most) expensive U.S. states for starting a business from online small business advisory company, Simplify LLC, which compared the country’s 50 states and ranked them based on nine business cost-related factors — basic business costs, labor costs and worker availability, cost of space and utilities, and healthy business environment.
Nevada is the cheapest state in the U.S. to start a business, without any corporate income tax, though it does collect a gross receipts tax of up to 0.3% from businesses with annual revenue exceeding $4,000,000. Plus, it boasts to be the third most commercial space-available state in the country.
Further, Nevada has the fourth-best business survival rate, which is about twice as many new businesses formed than failed in the state.
Colorado and Arkansas came in just behind the Silver State, aka Nevada. Both these states boasted of receiving ample small business loans. Arkansas small businesses received nearly $43 million in loans per 100,000 residents, the sixth-highest of any state. Colorado ranked eighth with $41.2 million in small business loans per 100,000 residents.
In addition, these two states have some of the lowest corporate tax rates — with Arkansas imposing a rate of 3.3% and Colorado at 4.4%. Additionally, these states have the lowest LLC filing fees — Arkansas state fee for starting an LLC being just $45 and Colorado’s $50, the ranking notes.
Read the complete 2023 Most and Least Expensive States to Start a Business Report from SimplifyLLC.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
For small and medium-sized businesses, a competitive compensation strategy is key to attracting and retaining the talent needed to grow...
Financial reporting often appears to be a routine exercise, but for small businesses, it can be the difference between reactive...
Financial operations encompass the systems and processes that govern every monetary aspect of a business—from managing payables and receivables to...
For many small business owners, running payroll is a time-intensive chore that requires meticulous calculation, familiarity with tax codes, and...
Managing your business’s finances can often feel like juggling too many tasks at once, especially when you’re trying to keep...
Small business owners often grapple with tax obligations that can swallow a large portion of their profits if not managed...
Human Resources (HR) might feel like an afterthought for many small business owners juggling day-to-day demands, yet it has a...
Artificial intelligence (AI) isn’t just for tech giants anymore—it’s increasingly accessible to small and mid-sized businesses seeking a competitive edge...
Setting up a payroll system is an essential step that helps small business owners pay their employees accurately and on...