A new report from Simplify revealed that Texas is best state in the country for entrepreneurs who are looking to start a new business in 2024.
The study highlighted that "the state has no corporate income taxes and has seen rapid business growth over the past year (23.7%)." It also noted that "it’s seeing an influx of professionals, with net migration of nearly 76,000 college-educated adults annually."
“Made in Texas” is more than just a good slogan – according to our analysis, the Lone Star State is the best in the U.S. to launch a business. Texas was buoyed to the No. 1 slot by its strong influx of educated workers (a net of nearly 76,000 in 2022) and business growth of 23.7% in the year ending November 2023.
The best states to start a business
Florida is the second best state to start a business in 2024. The study highlighted that it has "strong job creation (12.7) and educated worker mobility (net 145,000)." In 2023, The Sunshine State stood out for its low taxes and was also rated as the eighth-best state in the country for job growth.
Wyoming ranked third thanks in part to the fact that it does not impose corporate taxes on business owners. It also posted the strongest business growth in the country (39.2%) last year. However, according to the study, "even so, every state has its drawbacks, and Wyoming has a high degree of inflation relative to 2021 (19.8%) and low consumer spending growth (0.6%)."
The final two states that stand out for their strong business environment are Missouri and Delaware. Missouri (ranked fourth) stood out for its business growth (29.1%), and Delaware (ranked fifth) recorded strong job creation (17.1%) and strong business growth (24.8%).
Louisiana and Washington, D.C., at the bottom
On the other hand, Louisiana rated as the worst state to start a business this year, due in part to "lack of business growth (-0.2%), high regional inflation (18.3%), low consumer spending growth (0.9%), and weak mobility for educated workers. While about 31,000 educated adults moved into the state in 2022, another 47,600 moved out, meaning the state’s net migration for educated workforce was nearly -16,000."
Washington, D.C., came in behind Louisiana with "lackluster scores." The report said, "The capital city has mediocre scores across the board, but a particularly high top corporate tax rate (8.25%) and low consumer spending growth (1.2%)." It also added: "The capital city has lackluster scores across the board, but an especially high maximum corporate tax rate (8.25%) and low consumer spending growth (1.2%).”
