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The worst US states to start a business

Massachusetts is the worst state to start a business when considering overheads . Payments are high in almost every element , with an average annual wage of US $ 76,600 and hourly wage of US $ 36.83 .

In this new study , Wix . com analysed average annual wage , average hourly wage , corporate income tax , personal income tax , average corporate electricity bill and the cost of LLC registration to determine which state is the best to open a new business .

The most affordable US states to start a business

Mississippi leads as the most affordable state for entrepreneurs to kickstart a new business , with a score of 8.90 / 10 .

The southeastern state may be more expensive for average electricity bills relative to other states in the top 10 – Idaho ’ s US $ 393.60 bill is 30 % cheaper than Mississippi ’ s US $ 562.84 – but employers will likely be paying less in remunerations . The average annual wage is just US $ 45,180 , and the average hourly wage is US $ 21.72 : only Indiana is less , at US $ 20.24 .

With a business score of 8.35 / 10 , Kentucky is the second best state to create a new company for those looking to save cash . While Kentucky may not lead on any one factor , it does have the lowest personal income tax ( 4 %) after South Dakota and Wyoming ( 0 %). Additionally , those creating a business will benefit from a very affordable registration process . Kentucky is one of ten states that charges US $ 50 or less for LLC registration and is one of nine to not take additional payments every year .

South Dakota takes the bronze medal with an overall score of 8.31 / 10 . Like Wyoming , it takes no tax from personal income or corporate income , but South Dakotan business owners are likely to spend as much on employees . They pay less in average annual wages ( US $ 49,980 compared to US $ 54,440 ) and average hourly pay ( US $ 23.99 compared to US $ 26.17 ).

The largest barrier to entry for new business owners in Massachusetts is the cost of LLC registration . The US $ 500 first-time payment is the most expensive in the country – over four times the national average of US $ 123.96 . Then , businesses pay another US $ 500 every year to stay registered : while Mississippi , South Carolina and Missouri charge their entrepreneurs no additional payment after the initial expense .

California , with a score of 4 / 10 , is the second worst place to start a business . Despite being famous for business hotspots like Silicon Valley , the state has the highest corporate electricity bill at US $ 1,173.66 , whilst New Jersey , ranking in third , has the highest corporate income tax at 11.5 %. �

NOT ALL OBSTACLES ARE EQUAL : IN FACT , THE COST OF BUILDING A BUSINESS CAN DIFFER SIGNIFICANTLY BY TENS OF THOUSANDS OF DOLLARS DEPENDING ON WHICH US STATE IT EXISTS IN .

70 Intelligent SME . tech