On prominent sites such as Forbes, The Huffington Post, and Money.com you'll frequently find top ten or top twenty lists that reference those states that are more ‘small business friendly' than others. And it is true—some states are just more accommodating, more flexible in certain areas and more welcoming of the small business mentality; whereas others, not quite as much. We were curious as to what factors made a state small business-friendly. Below are a few of the things we discovered when it comes to some of the best regions in the US for owning and operating a small company.
Taxes. Certainly, taxes are a huge consideration when thinking about where to start a business. Some states have tax rates that are through the roof; there are others however that have either very low or even no personal income tax—which for a sole proprietor can make a huge difference. Florida and Washington, for instance, fall into this category. Also, some states have very low corporate tax rates to encourage incoming businesses.
Accessibility. While Alaska has no personal income tax, accessibility could be something of an issue here. There are shipping and transporting concerns that might make things relatively expensive for a business owner. States located in proximity to major hubs of commerce and industry, ports and shipping centers can thus seem more attractive.
Universities. With unemployment on the decline, companies are competing more and more for top talent. Being near some of the country's best universities is a good thing from a recruitment standpoint.
Startup Grants. Several communities do offer incentives for startups. Whether grants, low-interest funding or incubator programs, certain states do make the effort to foster growing small businesses.
Whatever state your business is located in, First Union can always help you from a financial standpoint. If you need money for expansion, buying out another company, purchasing new equipment, we have the resources to get you the funds you need and generally within just a couple of days. Call now to see what we can offer you!