Setting up a business is not a walk in the park, and the hardest part is maintaining it afterward. A lot of businesses start off well but crumble within the first few months. Just because you reside in a certain state does not mean that it is the best place to start a business. If you are going to step foot in the entrepreneurship world, then you ought to understand that different factors will affect the success of your business in certain states.
Rules, regulations, and tax rates vary from one state to another, so it is important to understand how the system works before starting your business. The recent economic growth should also impact your decision of starting a business in a certain state. Also, while statistics might show a lot of thriving businesses in a certain state, it might not have the strongest small business landscape. So you have to look into all the dynamics of a market and how your business will thrive in it.
That said, the following are some of the best states you could consider moving to if you are an entrepreneur or working towards becoming one.
New York is hands down one of the best states for entrepreneurs to move to in 2021. For starters, the state has different favorable laws for business, creating the perfect conditions for both growth and success. It is no wonder that it has been nicknamed “the city that never sleeps” and “the melting point”.
What’s more, it has a population of about 20 million people and this creates more than enough audience for your business, it all boils down to how you structure the business for your target audience. New York has endless opportunities you could take advantage of for entrepreneurial adventure.
One of the biggest advantages of investing in California is that the state offers a lot of diversity. In that, different regions are suitable for different business types, which opens multiple opportunities for business-oriented people. Entrepreneurs have very few limitations, and it is simple to identify an area as well as the spheres it thrives in the most.
For instance, Southern California would be a great place for someone looking to invest in marketing or entertainment. On the other hand, Northern California is the place you should be moving to if you wish to start a tech business. Considering that Silicon Valley and San Fransisco are located here, you have an easier way of connecting with other like-minded individuals.
The tourism industry has had outstanding success in Florida. Millions of tourists flock to the state every year to experience the great sunshine and sandy beaches. This explains the $2.6 billion in revenue from the industry and shows how profitable it would be to set up a business that benefits from tourism in Florida. In addition, Sarasota has been featured in the top ten list of the most tax-friendly locations in the US.
Unlike most of the states where some industries don’t do well, you are almost assured of the success of your business in Pennsylvania. The best part is that the state has cities cutting across both ends of the urban and the super-rural lifestyle. With this kind of balance, you can easily start a business and slowly grow it, as long as you have a superb business idea and how to execute it.
Delaware is yet another great state for entrepreneurs for so many reasons. For example, about 60% of Fortune 500 companies are incorporated here, and this has contributed to Delaware’s popularity and it being a top choice for businesses that need to set up in the US.
Also, because of its Chancery Court, it is a host to many attorneys as this special court is known for many different entity cases. This is one thing that attracts a lot of entrepreneurs investing in Delaware. This is because businesses are able to avoid litigation and save thousands, if not millions, in the event of tested case law.
One of the biggest challenges for most businesses is the state income tax. In Tennessee, this is something you shouldn’t worry about as a business person because it does not exist. However, there exists pay Hall Tax which is imposed on interest and dividends. One of the industries with notable triumph in this state is healthcare.
And while it has gained recognition as the “music city”, there are a lot of driven graduates qualified to fill different job opportunities created here. So in addition to having a conducive environment for nurturing a small business to success, there is a strong presence of an eligible workforce. Also, you might want to move to Nashville if finances are one of your biggest concerns.
Texas is located next to the Mexican border, and that means you could benefit not only from within the US but also outside the border. It is a perfect location if you want to draw on a bilingual workforce. And one of the ideal places to set up would be El Paso where 80% of the population is Hispanic. So you could have a pool of staff force speaking both Spanish and English.
Most importantly, office rents and energy bills in Texas are cheap when compared to other US locations. This makes it a good spot for a fledgling business to grow.
The Bottom Line
The above are great options for entrepreneurs to consider in 2021, whether you are a fully established business entity looking to expand or a startup looking for a promising location to build your business. If you are thinking of moving and setting up your business in one of the above states don’t just focus on taxes and talent pools only, it goes far beyond that.
Factors like where you want to trade, accessibility to infrastructure, and even the type of investments you wish to attract play a huge role. So when you choose a state for setting up, ensure to do your research and factor in all the vital dynamics of starting and running a business.