Minnesota Is the Most Expensive State to Start a Buisness
If your entrepreneurial spirit takes you to the Land of 10,000 Lakes to launch your new venture, you'd better bring some extra cash.
According to a new study by SimplifyLLC, Minnesota is the most expensive state in America to start a business.
Using figures from the U.S. Bureau of Labor Statistics, the study found one key reason why the costs of getting a company off the ground in Minnesota were so high.
Most specifically corporate taxes, which are the highest in the U.S., at an average of 9.8 percent.
But Minnesota offsets that with the nation's highest percentage of working-age people in the workforce - a whopping 81.6 percent.
MOST EXPENSIVE STATES TO START A BUSINESS
- New York
- West Virginia
South Dakota is on the other end of the spectrum.
The Mount Rushmore State is the sixth least expensive place to start a business.
The state benefits from two key areas: it has the second-best amount of small business loans per 100,000 people ($59,260,000) and the fourth-best percentage of working-age people in the workforce (79.7%).
On the downside, South Dakota has the third worst amount of commercial space available per 100,000 people.
LEAST EXPENSIVE STATES TO START A BUSINESS
- North Carolina
- South Dakota
Iowa lands right toward the middle of the pack.
The Hawkeye State is the 23rd cheapest place to start a business and it's a bit of a mixed bag.
The state has the third-worst business survival rate in America and is in the bottom ten in small business loans per 100,000 people ($27,274,000).
On the plus side, Iowa has the nation's second-lowest start-up fees and the fifth-best average utility rates.