State Your Business: The 5 Best States to Start a New Company In

When you’re doing your best to get your new startup company up and running, you need to make sure that the deck is stacked in your favor. That means, among other things, making sure that you find the right economic climate in which to found your fledgling financial empire. After all, when it comes to locations that are especially conducive to fostering and supporting the entrepreneurial spirit, not all states are created equal. A 2013 study conducted by Thumbtack and Kauffman Foundation surveyed 7,766 small-business owners from across the country, and asked them to grade their states on a number of factors which might have an impact on the overall success of a new business, and you might be surprised to see who the winners are. So, which areas are the best places in which to found a startup? Read on to find out.

5. Texas

One of the things that many owners tend to overlook is the support of the local community. Those who have started businesses in Texas report that a tendency for residents to favor local small businesses over bigger faceless corporations has made Texas a great place to found a company. It also helps when programs and seminars designed to aid new business owners are being provided for free. Overall, Texas makes sure to make business owners feel at home.

4. Idaho

Despite the fact that the state managed to receive A’s in every category, Idaho is an underdog that most business-moguls might overlook. However, it’s quickly becoming apparent that there is more to Idaho than potatoes. With low overall living expenses, low energy costs (thanks to an abundance of hydropower), and regulations that make it easy to get a new company off of the ground, Idaho is becoming a shining Utopia for startups.

3. New Hampshire

You know what they say: location, location, location. New Hampshire finds itself on the other side of the country from the other top five contenders, and it may well be its proximity to some less-than business-friendly states that gave it a boost on the survey. With fewer and less strict regulations than some of its neighbors, and a tax-code that favors business, New Hampshire manages to snatch up the number three spot on this list.

2. Alabama

With A grades across the board, Alabama comes in second place overall. Those surveyed made note of Alabama’s pro-business legislation that is designed specifically to encourage economic growth. Add to that the low energy costs, taxes, and other operating expenses, and you have a state in which any new entrepreneur would be happy to lay a foundation. It seems as though the Heart of Dixie may one day become the undisputed heart of enterprise.

1. Utah

When compared to juggernaut corporation states such as New York and California, Utah may seem like a whole lot of nothing in regards to business, but don’t be so quick to right it off. The survey discovered that—on the whole—Utah is more friendly towards small businesses than any other state in the Union. This is due in part to the state’s reasonable and fair business regulations, ease of acquiring licensing, lower than average taxes, and several other factors as well. Just look at a few of the successful startups that began in the Beehive State: The company that would eventually become Vivint began with a few friends selling pest control door-to-door. After listening to Vivint reviews and customer needs, the company is now a home automation giant worth over $2 billion that has expanded into home automation, energy management, and solar power. Domo is a software company being run out of a small town south of Salt Lake, but was named one of Forbes top 100 most promising companies in America. They are only expected to grow more this year. And, with Utah’s business-friendly mindset, you can expect more and more startups to make it big up in the mountains.