The 7 Best States to Start a Business

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frank of CA 8:11PM July 28, 2009

NYC alone is enough to get NY there, but being upstate is fine. It was also NY that lead the charge to not tax online businesses in 1997, so anyone and everyone not paying taxes for their online business should be thanking them.

Colin of NY 6:21PM July 23, 2009

new jersey should be on there somewhere

wtf of NJ 12:13PM April 30, 2009

Taiwan is a new choice for start-up.

noah 12:36AM March 05, 2009

where are all 50 states ranking, I see top 7 and bottom 7?
Is it an average of the 2 studies? what is the methodology for the ranking?

chad of CA 6:51PM March 01, 2009

I would like to knowe What kinds of business in Texas which will match for Texas State. Because in Texas has lowe cost of labors.

Mali Thanudape of TX 9:11AM January 15, 2009

Sheesh, Lewis! No state is perfect. It is probably safe to say that the purpose of these surveys and metrics were not to identify non-existent utopic states, but to rank the states for attractiveness to entrepreneurs, benefits and detriments included.
Based on the opinions of the professionals at the Kauffman Foundation, the Information Technology and Innovation Foundation, the Small Business and Entrepreneurship Council, and U.S. News & World Report, Washington's business pros outweigh its cons and the state currently outperforms the other 50 on these metrics.
Although each state has room for improvement, including Washington, it is clearly a testament to the business leaders, political leaders, and various citizens of the state that Washington is recognized as a welcoming place for new business when compared to other regions of the country. . . the rain notwithstanding.

Jamal of WA 9:50PM January 09, 2009

While we in WA are proud to be listed as #1, the business climate here is far from rosy. Yes, it is true that we do not have a personal or corporate income tax or capital gains taxes so it is great for entrepreneurs and investors when they want to cash out or for high wage workers. But we have a very high sales tax (9% in Seattle, slightly less in other cities) and unemployment taxes are quite high.
It also depends on the industry. Any manufacturer or industrial business has a massive amount of regulation, particularly environmental regs to comply with. For software/internet and non-manufacturing high-tech, it is an excellent place to be.
Our primary business tax is a tax on gross receipts called the "Business and Occupation" tax and it is very confusing. We are also the only state that taxes construction labor costs in addition to materials so it increases the cost of building. There are a wide range of exemptions and credits available depending on the type of business you are in.
K-12 schools are weak but improving slowly. Colleges and universities are quite good overall.
The state has made numerous efforts to make starting a business and knowing what taxes and regs are applicable more accessible and understandable, which has helped.
However, WA is a very strong union state and they are very politically powerful and very anti-business. They push for legislation that makes hiring and firing more difficult and are supporting new payroll taxes for health care and paid family leave.
Having said all that, though, it is a great state to live in despite the rain.

Lewis of WA 9:03PM January 08, 2009