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The 50 Best States To Start a Business in 2025

October 11, 2024

9 min Read

Written by Justice Petersen

Edited by Rebekah Evans

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While starting your own business can be expensive and a hit to your personal finances (if not successful), the number of businesses in the U.S. has grown in recent years. In 2023, 5.5 million businesses were started — a record-breaking amount following the COVID-19 pandemic and rising inflation.

Despite this increase, a report from Zapier said that nearly 63% of aspiring entrepreneurs said the biggest thing stopping them from starting a business is funding. However, perhaps knowing which states are the best for starting a business can help aspiring business owners with their financial concerns.

A recent study from Wix ranked all 50 states and found which one was the best to start your business in. The study analyzed several factors, including the cost of LLC registration, average annual wage, average hourly wage, corporate income tax and personal income tax to determine the score for each state.

Key Findings:

Wix experts found that Mississippi is the best state to start a business in 2024
Massachusetts is the worst state to start a business in 2024
And Idaho businesses pay the lowest annual corporate electricity bill, on average

Listed below is the complete list of data from Wix’s recent study on the most affordable states to start your business in 2024.

Also here are 10 tips to starting a business with little funding.

Mississippi

LLC registration fee: $50
LLC recurring fee: $0
Annual corporate electricity bill: $562.84
Average annual wage: $45,180
Average hourly wage: $21.72
Corporate income tax: 5%
Personal tax: 4.7%
Score: 8.9

Kentucky

LLC registration fee: $40
LLC recurring fee: $15
Annual corporate electricity bill: $606.42
Average annual wage: $51,490
Average hourly wage: $24.76
Corporate income tax: 5%
Personal tax: 4%
Score: 8.35

South Dakota

LLC registration fee: $150
LLC recurring fee: $50
Annual corporate electricity bill: $551.31
Average annual wage: $49,980
Average hourly wage: $23.99
Corporate income tax: 0%
Personal tax: 0%
Score: 8.31

South Carolina

LLC registration fee: $110
LLC recurring fee: $0
Annual corporate electricity bill: $540.38
Average annual wage: $50,650
Average hourly wage: $24.35
Corporate income tax: 5%
Personal tax: 4.5%
Score: 8.29

Missouri

LLC registration fee: $50
LLC recurring fee: $0
Annual corporate electricity bill: $594.65
Average annual wage: $54,520
Average hourly wage: $26.21
Corporate income tax: 4%
Personal tax: 4.8%
Score: 8.25

Wyoming

LLC registration fee: $100
LLC recurring fee: $60
Annual corporate electricity bill: $491.91
Average annual wage: $54,440
Average hourly wage: $26.17
Corporate income tax: 0%
Personal tax: 0%
Score: 8.22

Idaho

LLC registration fee: $100
LLC recurring fee: $0
Annual corporate electricity bill: $393.60
Average annual wage: $51,530
Average hourly wage: $24.69
Corporate income tax: 6.5%
Personal tax: 5.8%
Score: 8.12

West Virginia

LLC registration fee: $100
LLC recurring fee: $25
Annual corporate electricity bill: $422.02
Average annual wage: $49,170
Average hourly wage: $23.64
Corporate income tax: 6.5%
Personal tax: 5.12%
Score: 8.12

Indiana

LLC registration fee: $95
LLC recurring fee: $16
Annual corporate electricity bill: $679.48
Average annual wage: $53,500
Average hourly wage: $20.24
Corporate income tax: 4.9%
Personal tax: 3.05%
Score: 8.10

Arkansas

LLC registration fee: $45
LLC recurring fee: $150
Annual corporate electricity bill: $495.24
Average annual wage: $48,570
Average hourly wage: $23.35
Corporate income tax: 5.9%
Personal tax: 4.8%
Score: 8.04

Ohio

LLC registration fee: $99
LLC recurring fee: $0
Annual corporate electricity bill: $631.89
Average annual wage: $56,530
Average hourly wage: $27.18
Corporate income tax: 0%
Personal tax: 3.5%
Score: 7.94

Montana

LLC registration fee: $35
LLC recurring fee: $20
Annual corporate electricity bill: $389.56
Average annual wage: $52,200
Average hourly wage: $25.11
Corporate income tax: 6.75%
Personal tax: 5.9%
Score: 7.94

New Mexico

LLC registration fee: $50
LLC recurring fee: $0
Annual corporate electricity bill: $569.77
Average annual wage: $54,400
Average hourly wage: $26.15
Corporate income tax: 5.9%
Personal tax: 5.9%
Score: 7.9

Oklahoma

LLC registration fee: $100
LLC recurring fee: $65
Annual corporate electricity bill: $637.12
Average annual wage: $50,940
Average hourly wage: $24.49
Corporate income tax: 4%
Personal tax: 3.5%
Score: 7.84

Iowa

LLC registration fee: $50
LLC recurring fee: $15
Annual corporate electricity bill: $446.87
Average annual wage: $53,520
Average hourly wage: $25.73
Corporate income tax: 9.8%
Personal tax: 5.7%
Score: 7.51

Nevada

LLC registration fee: $75
LLC recurring fee: $350
Annual corporate electricity bill: $604.64
Average annual wage: $55,490
Average hourly wage: $26.68
Corporate income tax: 0%
Personal tax: 2.5%
Score: 7.49

Arizona

LLC registration fee: $50
LLC recurring fee: $0
Annual corporate electricity bill: $834.14
Average annual wage: $58,620
Average hourly wage: $28.18
Corporate income tax: 4.9%
Personal tax: 2.5%
Score: 7.45

Nebraska

LLC registration fee: $100
LLC recurring fee: $12.50
Annual corporate electricity bill: $445.87
Average annual wage: $55,070
Average hourly wage: $26.48
Corporate income tax: 7.5%
Personal tax: 5.84%
Score: 7.29

Colorado

LLC registration fee: $50
LLC recurring fee: $10
Annual corporate electricity bill: $520.15
Average annual wage: $67,870
Average hourly wage: $32.63
Corporate income tax: 4.55%
Personal tax: 4.4%
Score: 7.27

Texas

LLC registration fee: $300
LLC recurring fee: $0
Annual corporate electricity bill: $769.25
Average annual wage: $57,300
Average hourly wage: $27.55
Corporate income tax: 0%
Personal tax: 0%
Score: 7.22

Louisiana

LLC registration fee: $100
LLC recurring fee: $30
Annual corporate electricity bill: $781.82
Average annual wage: $50,940
Average hourly wage: $24.49
Corporate income tax: 7.5%
Personal tax: 4.25%
Score: 7.18

Utah

LLC registration fee: $54
LLC recurring fee: $18
Annual corporate electricity bill: $633.63
Average annual wage: $57,360
Average hourly wage: $27.58
Corporate income tax: 4.95%
Personal tax: 4.65%
Score: 7.16

Michigan

LLC registration fee: $50
LLC recurring fee: $25
Annual corporate electricity bill: $699.98
Average annual wage: $58,000
Average hourly wage: $27.88
Corporate income tax: 6%
Personal tax: 4.25%
Score: 7.02

North Carolina

LLC registration fee: $125
LLC recurring fee: $200
Annual corporate electricity bill: $485.41
Average annual wage: $56,220
Average hourly wage: $27.03
Corporate income tax: 2.5%
Personal tax: 4.5%
Score: 6.9

North Dakota

LLC registration fee: $135
LLC recurring fee: $50
Annual corporate electricity bill: $769.84
Average annual wage: $55,800
Average hourly wage: $26.83
Corporate income tax: 4.31%
Personal tax: 2.5%
Score: 6.9

Florida

LLC registration fee: $125
LLC recurring fee: $138.75
Annual corporate electricity bill: $704.69
Average annual wage: $55,980
Average hourly wage: $26.91
Corporate income tax: 5.5%
Personal tax: 0%
Score: 6.63

Pennsylvania

LLC registration fee: $125
LLC recurring fee: $7
Annual corporate electricity bill: $455.78
Average annual wage: $58,470
Average hourly wage: $28.11
Corporate income tax: 9.99%
Personal tax: 3.07%
Score: 6.63

Tennessee

LLC registration fee: $300
LLC recurring fee: $300
Annual corporate electricity bill: $677.21
Average annual wage: $52,820
Average hourly wage: $25.39
Corporate income tax: 6.5%
Personal tax: 0%
Score: 6.59

Kansas

LLC registration fee: $160
LLC recurring fee: $50
Annual corporate electricity bill: $616.46
Average annual wage: $52,850
Average hourly wage: $25.41
Corporate income tax: 7%
Personal tax: 5.7%
Score: 6.55

Hawaii

LLC registration fee: $50
LLC recurring fee: $15
Annual corporate electricity bill: $1,580.05
Average annual wage: $61,420
Average hourly wage: $23.35
Corporate income tax: 6.4%
Personal tax: 11%
Score: 6.53

Alabama

LLC registration fee: $225
LLC recurring fee: $110
Annual corporate electricity bill: $645.68
Average annual wage: $50,620
Average hourly wage: $24.32
Corporate income tax: 6.5%
Personal tax: 5%
Score: 6.53

Georgia

LLC registration fee: $100
LLC recurring fee: $50
Annual corporate electricity bill: $822.28
Average annual wage: $58,000
Average hourly wage: $27.88
Corporate income tax: 5.75%
Personal tax: 5.49%
Score: 6.27

New Hampshire

LLC registration fee: $100
LLC recurring fee: $100
Annual corporate electricity bill: $573.59
Average annual wage: $62,550
Average hourly wage: $30.07
Corporate income tax: 7.6%
Personal tax: 3%
Score: 6.25

Vermont

LLC registration fee: $125
LLC recurring fee: $35
Annual corporate electricity bill: $448.28
Average annual wage: $59,190
Average hourly wage: $28.46
Corporate income tax: $8.5%
Personal tax: 8.75%
Score: 5.82

Wisconsin

LLC registration fee: $170
LLC recurring fee: $25
Annual corporate electricity bill: $636.18
Average annual wage: $56,120
Average hourly wage: $26.98
Corporate income tax: 7.9%
Personal tax: 7.65%
Score: 5.74

Maine

LLC registration fee: $175
LLC recurring fee: $85
Annual corporate electricity bill: $499.07
Average annual wage: $55,960
Average hourly wage: $26.90
Corporate income tax: 8.93%
Personal tax: 7.15%
Score: 5.63

Oregon

LLC registration fee: $100
LLC recurring fee: $100
Annual corporate electricity bill: $530.76
Average annual wage: $62,680
Average hourly wage: $30.14
Corporate income tax: 7.6%
Personal tax: 9.9%
Score: 5.57

Virginia

LLC registration fee: $100
LLC recurring fee: $50
Annual corporate electricity bill: $1,261.39
Average annual wage: $65,590
Average hourly wage: $31.54
Corporate income tax: 6%
Personal tax: 5.75%
Score: 5.55

Washington

LLC registration fee: $200
LLC recurring fee: $70
Annual corporate electricity bill: $591.58
Average annual wage: $72,350
Average hourly wage: $34.79
Corporate income tax: 0%
Personal tax: 7%
Score: 5.43

Alaska

LLC registration fee: $250
LLC recurring fee: $50
Annual corporate electricity bill: $763.79
Average annual wage: $66,130
Average hourly wage: $31.79
Corporate income tax: 9.4%
Personal tax: 0%
Score: 5.31

Minnesota

LLC registration fee: $135
LLC recurring fee: $0
Annual corporate electricity bill: $749.70
Average annual wage: $63,640
Average hourly wage: $30.60
Corporate income tax: 9.8%
Personal tax: 9.85%
Score: 5.25

Delaware

LLC registration fee: $110
LLC recurring fee: $300
Annual corporate electricity bill: $665.02
Average annual wage: $62,260
Average hourly wage: $29.93
Corporate income tax: 8.7%
Personal tax: 6.6%
Score: 5.02

Illinois

LLC registration fee: $150
LLC recurring fee: $75
Annual corporate electricity bill: $698.64
Average annual wage: $69,390
Average hourly wage: $30.73
Corporate income tax: 9.5%
Personal tax: 4.95%
Score: 4.88

Connecticut

LLC registration fee: $120
LLC recurring fee: $80
Annual corporate electricity bill: $811.44
Average annual wage: $69,310
Average hourly wage: $33.32
Corporate income tax: 7.4%
Personal tax: 6.99%
Score: 4.71

Maryland

LLC registration fee: $100
LLC recurring fee: $300
Annual corporate electricity bill: $1,116.72
Average annual wage: $69,750
Average hourly wage: $33.53
Corporate income tax: 8.25%
Personal tax: 5.75%
Score: 4.65

Rhode Island

LLC registration fee: $150
LLC recurring fee: $450
Annual corporate electricity bill: $842.46
Average annual wage: $64,530
Average hourly wage: $31.03
Corporate income tax: 7%
Personal tax: 5.99%
Score: 4.51

New York

LLC registration fee: $200
LLC recurring fee: $29.50
Annual corporate electricity bill: $937.82
Average annual wage: $74,870
Average hourly wage: $36
Corporate income tax: 7.25%
Personal tax: 10.9%
Score: 4.22

New Jersey

LLC registration fee: $125
LLC recurring fee: $75
Annual corporate electricity bill: $803.60
Average annual wage: $70,890
Average hourly wage: $34.08
Corporate income tax: 11.5%
Personal tax: 10.75%
Score: 4.14

California

LLC registration fee: $90
LLC recurring fee: $810
Annual corporate electricity bill: $1,173.66
Average annual wage: $73,220
Average hourly wage: $35.20
Corporate income tax: 8.84%
Personal tax: 13.3%
Score: 4

Massachusetts

LLC registration fee: $500
LLC recurring fee: $500
Annual corporate electricity bill: $872.99
Average annual wage: $76,600
Average hourly wage: $36.83
Corporate income tax: 8%
Personal tax: 9%
Score: 3.47

Data is sourced from Wix and is accurate as of July 2024.

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