The 7 Best States to Start a Side Business in Retirement

Deciding where to start a side business in retirement involves considering several factors, including the state’s tax environment, regulatory landscape, access to resources, and the overall cost of living. Here are some of the best states for retirees to start a side business:

• Tax Benefits: Florida is known for its favorable tax climate, particularly the absence of a state income tax, which extends to income from businesses.
• Senior Population: With a high percentage of retirees, the market for services tailored to older adults is expansive.
• Start-up Resources: Numerous resources and communities support entrepreneurial activities among retirees.
• Cost to Establish an LLC: $125

• Business-Friendly Environment: Texas offers a low-tax environment and minimal regulations, making it easier to start and maintain a business.
• Diverse Economy: The state’s economy is varied, providing numerous niches for new businesses.
• Growth Opportunities: Rapid population growth offers new market opportunities.
• Cost to Establish an LLC: $300

• Tax Advantages: Like Florida, Nevada has no state income tax, which includes income derived from business operations.
• Strategic Location: Proximity to major markets like California, coupled with a lower cost of living and operation, is beneficial.
• Tourism Sector: The robust tourism sector offers numerous business opportunities in service and retail.
• Cost to Establish an LLC: $425

• No State Income Tax: This can significantly enhance profitability for retirees drawing income from their businesses.
• Innovative Culture: Washington’s reputation as a hub for innovation and tech can provide numerous business opportunities.
• Supportive Business Networks: There are extensive networks available to support start-ups.
• Cost to Establish an LLC: $180

• Economic Health: Colorado’s strong economy and growing population provide a solid base for new businesses.
• Ageing Population: The growing senior demographic could be a target market for various services.
• Lifestyle and Health: The state’s focus on health and lifestyle can open niches in related markets.
• Cost to Establish an LLC: $50

• Tax Climate: The lack of corporate income tax and personal income tax makes it financially attractive.
• Business Support: The state offers various programs to support small businesses and start-ups.
• Quality of Life: High quality of life with a low cost of living can be advantageous for retirees.
• Cost to Establish an LLC: $50

• Favorable Taxation: No personal or corporate income taxes, and low sales tax.
• Entrepreneurial Resources: Resources like the Wyoming Technology Business Center support start-ups.
• Low Regulatory Burden: The state’s regulatory environment is conducive to business.
• Cost to Establish an LLC: $100

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.