Best States To Start A Business 2025

Total Score

Business Environment

Cost of Doing Business

Funding & Resource Availability

Business Friendliness Index Score

1.	Texas	70.2
2.	Florida	65.7
3.	New Mexico	64.0
4.	Oregon	63.9
5.	North Carolina	63.3
6.	Wyoming	63.0
7.	Georgia	62.8
8.	Ohio	61.7
9.	Colorado	61.3
10.	Indiana	61.0
11.	Nevada	60.6
12.	Virginia	60.5
13.	Arizona	60.5
14.	Idaho	60.5
15.	Mississippi	60.5
16.	Washington	60.1
17.	South Dakota	59.9
18.	Oklahoma	59.8
19.	South Carolina	59.8
20.	Michigan	59.4
21.	Utah	59.1
22.	Missouri	59.1
23.	Kentucky	58.8
24.	Tennessee	58.4
25.	California	57.8
26.	Iowa	57.4
27.	Minnesota	56.9
28.	Nebraska	56.9
29.	Louisiana	56.9
30.	Alabama	55.5
31.	Delaware	55.5
32.	North Dakota	55.3
33.	Massachusetts	55.1
34.	Montana	55.1
35.	Kansas	54.4
36.	Pennsylvania	54.2
37.	Wisconsin	54.0
38.	Arkansas	53.9
39.	West Virginia	53.1
40.	Illinois	52.6
41.	New York	51.4
42.	New Jersey	51.0
43.	Alaska	50.2
44.	Maryland	49.5
45.	Maine	49.5
46.	Vermont	48.8
47.	New Hampshire	48.7
48.	Connecticut	48.3
49.	Hawaii	46.5
50.	Rhode Island	43.3

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Interactive Map
Introduction
By Region
Table

Introduction

As the United States emerges from the shadows of the COVID-19 pandemic, entrepreneurship is back in the spotlight. With a burgeoning economy and the advent of new opportunities, many are contemplating taking the plunge into the world of business ownership. However, the success of a startup hinges significantly on its geographical location. The question innately arises - which states provide the optimal environment for nurturing a new business? The 'Business Friendliness Index Score' is a comprehensive score determined by comparing the 50 US states across three key dimensions: 1) Business Environment, 2) Access to Resources, and 3) Business Costs, using 25 relevant metrics.

Texas takes the crown as the most accommodating state in which to launch a business, boasting the highest 'Business Friendliness Index Score' of 70.2, thanks to its robust economy, low taxes, and friendly regulatory environment.
Generally, states in the Southern and Western regions tend to rank higher in terms of business friendliness, with states like Texas, Florida, New Mexico, and Oregon scoring above 63.0 points.
Surprisingly, traditional economic powerhouses like New York and California lag behind in this ranking, with scores of 51.4 and 57.8 respectively, due to higher business operating costs and relatively stricter regulatory systems.
The data reveals the Northeastern states like Vermont, New Hampshire, and Connecticut, and the Island state of Hawaii, display less favorable conditions for startups due to factors such as high costs of living, complex regulation, and comparatively smaller markets.
Available resources and business costs hold particular importance in determining a state's favorability towards startups. Wyoming, with a score of 63.0, stands out in these sectors with its abundant natural resources and competitive business costs, making it a lucrative choice for entrepreneurs.

By Region

Alabama

See Less

Metric

Value

Rank

Total Score

55.5

#30

Business Environment Score

26.0

#39

Cost of Doing Business Score

19.7

#23

Funding & Resource Availability Score

9.8

#22

Alaska

Metric

Value

Rank

Total Score

50.2

#43

Business Environment Score

25.1

#44

Cost of Doing Business Score

17.6

#36

Funding & Resource Availability Score

7.6

#43

Arizona

Metric

Value

Rank

Total Score

60.5

#13

Business Environment Score

29.0

#23

Cost of Doing Business Score

21.2

#13

Funding & Resource Availability Score

10.4

#18

Arkansas

Metric

Value

Rank

Total Score

53.9

#38

Business Environment Score

24.8

#45

Cost of Doing Business Score

19.9

#22

Funding & Resource Availability Score

9.1

#29

California

Metric

Value

Rank

Total Score

57.8

#25

Business Environment Score

35.6

Cost of Doing Business Score

10.9

#49

Funding & Resource Availability Score

11.3

#10

Colorado

Metric

Value

Rank

Total Score

61.3

Business Environment Score

32.2

Cost of Doing Business Score

17.6

#35

Funding & Resource Availability Score

11.5

Connecticut

Metric

Value

Rank

Total Score

48.3

#48

Business Environment Score

27.2

#33

Cost of Doing Business Score

13.5

#47

Funding & Resource Availability Score

7.6

#44

Delaware

Metric

Value

Rank

Total Score

55.5

#31

Business Environment Score

28.0

#30

Cost of Doing Business Score

16.0

#40

Funding & Resource Availability Score

11.5

Florida

Metric

Value

Rank

Total Score

65.7

Business Environment Score

33.9

Cost of Doing Business Score

18.1

#31

Funding & Resource Availability Score

13.7

Georgia

Metric

Value

Rank

Total Score

62.8

Business Environment Score

29.6

#16

Cost of Doing Business Score

20.3

#19

Funding & Resource Availability Score

13.0

Hawaii

Metric

Value

Rank

Total Score

46.5

#49

Business Environment Score

26.1

#38

Cost of Doing Business Score

14.0

#44

Funding & Resource Availability Score

6.4

#49

Idaho

Metric

Value

Rank

Total Score

60.5

#14

Business Environment Score

30.8

#10

Cost of Doing Business Score

20.3

#20

Funding & Resource Availability Score

9.5

#24

Illinois

Metric

Value

Rank

Total Score

52.6

#40

Business Environment Score

30.0

#11

Cost of Doing Business Score

14.1

#43

Funding & Resource Availability Score

8.5

#36

Indiana

Metric

Value

Rank

Total Score

61.0

#10

Business Environment Score

28.3

#27

Cost of Doing Business Score

21.0

#14

Funding & Resource Availability Score

11.7

Iowa

Metric

Value

Rank

Total Score

57.4

#26

Business Environment Score

26.5

#37

Cost of Doing Business Score

22.3

Funding & Resource Availability Score

8.5

#35

Kansas

Metric

Value

Rank

Total Score

54.4

#35

Business Environment Score

24.5

#48

Cost of Doing Business Score

18.6

#29

Funding & Resource Availability Score

11.2

#12

Kentucky

Metric

Value

Rank

Total Score

58.8

#23

Business Environment Score

28.4

#25

Cost of Doing Business Score

21.9

#10

Funding & Resource Availability Score

8.5

#34

Louisiana

Metric

Value

Rank

Total Score

56.9

#29

Business Environment Score

28.4

#26

Cost of Doing Business Score

20.4

#18

Funding & Resource Availability Score

8.0

#40

Maine

Metric

Value

Rank

Total Score

49.5

#45

Business Environment Score

24.1

#49

Cost of Doing Business Score

18.5

#30

Funding & Resource Availability Score

7.0

#47

Maryland

Metric

Value

Rank

Total Score

49.5

#44

Business Environment Score

25.7

#41

Cost of Doing Business Score

15.0

#42

Funding & Resource Availability Score

8.8

#33

Massachusetts

Metric

Value

Rank

Total Score

55.1

#33

Business Environment Score

31.9

Cost of Doing Business Score

10.4

#50

Funding & Resource Availability Score

12.8

Michigan

Metric

Value

Rank

Total Score

59.4

#20

Business Environment Score

29.4

#18

Cost of Doing Business Score

20.6

#17

Funding & Resource Availability Score

9.4

#26

Minnesota

Metric

Value

Rank

Total Score

56.9

#27

Business Environment Score

29.9

#12

Cost of Doing Business Score

17.8

#33

Funding & Resource Availability Score

9.2

#28

Mississippi

Metric

Value

Rank

Total Score

60.5

#15

Business Environment Score

28.3

#28

Cost of Doing Business Score

22.3

Funding & Resource Availability Score

9.9

#21

Missouri

Metric

Value

Rank

Total Score

59.1

#22

Business Environment Score

25.1

#42

Cost of Doing Business Score

23.1

Funding & Resource Availability Score

10.8

#16

Montana

Metric

Value

Rank

Total Score

55.1

#34

Business Environment Score

29.9

#13

Cost of Doing Business Score

17.3

#37

Funding & Resource Availability Score

7.9

#42

Nebraska

Metric

Value

Rank

Total Score

56.9

#28

Business Environment Score

25.7

#40

Cost of Doing Business Score

20.9

#16

Funding & Resource Availability Score

10.3

#19

Nevada

Metric

Value

Rank

Total Score

60.6

#11

Business Environment Score

29.2

#20

Cost of Doing Business Score

23.2

Funding & Resource Availability Score

8.2

#39

New Hampshire

Metric

Value

Rank

Total Score

48.7

#47

Business Environment Score

26.7

#36

Cost of Doing Business Score

13.6

#45

Funding & Resource Availability Score

8.4

#38

New Jersey

Metric

Value

Rank

Total Score

51.0

#42

Business Environment Score

29.0

#24

Cost of Doing Business Score

13.5

#46

Funding & Resource Availability Score

8.5

#37

New Mexico

Metric

Value

Rank

Total Score

64.0

Business Environment Score

33.7

Cost of Doing Business Score

23.1

Funding & Resource Availability Score

7.2

#45

New York

Metric

Value

Rank

Total Score

51.4

#41

Business Environment Score

28.2

#29

Cost of Doing Business Score

12.5

#48

Funding & Resource Availability Score

10.7

#17

North Carolina

Metric

Value

Rank

Total Score

63.3

Business Environment Score

30.9

Cost of Doing Business Score

22.7

Funding & Resource Availability Score

9.7

#23

North Dakota

Metric

Value

Rank

Total Score

55.3

#32

Business Environment Score

24.7

#47

Cost of Doing Business Score

19.6

#24

Funding & Resource Availability Score

11.1

#14

Ohio

Metric

Value

Rank

Total Score

61.7

Business Environment Score

27.6

#31

Cost of Doing Business Score

24.0

Funding & Resource Availability Score

10.2

#20

Oklahoma

Metric

Value

Rank

Total Score

59.8

#18

Business Environment Score

29.6

#17

Cost of Doing Business Score

21.0

#15

Funding & Resource Availability Score

9.3

#27

Oregon

Metric

Value

Rank

Total Score

63.9

Business Environment Score

38.0

Cost of Doing Business Score

18.8

#28

Funding & Resource Availability Score

7.1

#46

Pennsylvania

Metric

Value

Rank

Total Score

54.2

#36

Business Environment Score

29.3

#19

Cost of Doing Business Score

16.0

#41

Funding & Resource Availability Score

8.8

#32

Rhode Island

Metric

Value

Rank

Total Score

43.3

#50

Business Environment Score

20.3

#50

Cost of Doing Business Score

16.3

#38

Funding & Resource Availability Score

6.6

#48

South Carolina

Metric

Value

Rank

Total Score

59.8

#19

Business Environment Score

27.0

#34

Cost of Doing Business Score

21.8

#11

Funding & Resource Availability Score

11.0

#15

South Dakota

Metric

Value

Rank

Total Score

59.9

#17

Business Environment Score

26.7

#35

Cost of Doing Business Score

22.2

Funding & Resource Availability Score

11.1

#13

Tennessee

Metric

Value

Rank

Total Score

58.4

#24

Business Environment Score

29.2

#21

Cost of Doing Business Score

18.1

#32

Funding & Resource Availability Score

11.2

#11

Texas

Metric

Value

Rank

Total Score

70.2

Business Environment Score

33.1

Cost of Doing Business Score

23.0

Funding & Resource Availability Score

14.1

Utah

Metric

Value

Rank

Total Score

59.1

#21

Business Environment Score

29.7

#15

Cost of Doing Business Score

17.7

#34

Funding & Resource Availability Score

11.7

Vermont

Metric

Value

Rank

Total Score

48.8

#46

Business Environment Score

24.8

#46

Cost of Doing Business Score

16.1

#39

Funding & Resource Availability Score

8.0

#41

Virginia

Metric

Value

Rank

Total Score

60.5

#12

Business Environment Score

29.0

#22

Cost of Doing Business Score

19.0

#27

Funding & Resource Availability Score

12.5

Washington

Metric

Value

Rank

Total Score

60.1

#16

Business Environment Score

29.7

#14

Cost of Doing Business Score

21.7

#12

Funding & Resource Availability Score

8.8

#31

West Virginia

Metric

Value

Rank

Total Score

53.1

#39

Business Environment Score

27.3

#32

Cost of Doing Business Score

19.5

#26

Funding & Resource Availability Score

6.3

#50

Wisconsin

Metric

Value

Rank

Total Score

54.0

#37

Business Environment Score

25.1

#43

Cost of Doing Business Score

19.5

#25

Funding & Resource Availability Score

9.5

#25

Wyoming

Metric

Value

Rank

Total Score

63.0

Business Environment Score

34.1

Cost of Doing Business Score

20.0

#21

Funding & Resource Availability Score

8.8

#30

Table

Region ↕	Total Score↕	Business Environment↕	Cost of Doing Business↕	Funding & Resource Availability↕
Alabama	55.5	26.0	19.7	9.8
Alaska	50.2	25.1	17.6	7.6
Arizona	60.5	29.0	21.2	10.4
Arkansas	53.9	24.8	19.9	9.1
California	57.8	35.6	10.9	11.3
Colorado	61.3	32.2	17.6	11.5
Connecticut	48.3	27.2	13.5	7.6
Delaware	55.5	28.0	16.0	11.5
Florida	65.7	33.9	18.1	13.7
Georgia	62.8	29.6	20.3	13.0
Hawaii	46.5	26.1	14.0	6.4
Idaho	60.5	30.8	20.3	9.5
Illinois	52.6	30.0	14.1	8.5
Indiana	61.0	28.3	21.0	11.7
Iowa	57.4	26.5	22.3	8.5
Kansas	54.4	24.5	18.6	11.2
Kentucky	58.8	28.4	21.9	8.5
Louisiana	56.9	28.4	20.4	8.0
Maine	49.5	24.1	18.5	7.0
Maryland	49.5	25.7	15.0	8.8
Massachusetts	55.1	31.9	10.4	12.8
Michigan	59.4	29.4	20.6	9.4
Minnesota	56.9	29.9	17.8	9.2
Mississippi	60.5	28.3	22.3	9.9
Missouri	59.1	25.1	23.1	10.8
Montana	55.1	29.9	17.3	7.9
Nebraska	56.9	25.7	20.9	10.3
Nevada	60.6	29.2	23.2	8.2
New Hampshire	48.7	26.7	13.6	8.4
New Jersey	51.0	29.0	13.5	8.5
New Mexico	64.0	33.7	23.1	7.2
New York	51.4	28.2	12.5	10.7
North Carolina	63.3	30.9	22.7	9.7
North Dakota	55.3	24.7	19.6	11.1
Ohio	61.7	27.6	24.0	10.2
Oklahoma	59.8	29.6	21.0	9.3
Oregon	63.9	38.0	18.8	7.1
Pennsylvania	54.2	29.3	16.0	8.8
Rhode Island	43.3	20.3	16.3	6.6
South Carolina	59.8	27.0	21.8	11.0
South Dakota	59.9	26.7	22.2	11.1
Tennessee	58.4	29.2	18.1	11.2
Texas	70.2	33.1	23.0	14.1
Utah	59.1	29.7	17.7	11.7
Vermont	48.8	24.8	16.1	8.0
Virginia	60.5	29.0	19.0	12.5
Washington	60.1	29.7	21.7	8.8
West Virginia	53.1	27.3	19.5	6.3
Wisconsin	54.0	25.1	19.5	9.5
Wyoming	63.0	34.1	20.0	8.8

Best States To Start A Business

Table of Contents

Introduction

By Region

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Table

Additional Global Rankings

Best States for Couples

Best States for Gen Z

Friendliest States

Happiest States

Worst Airports to Fly Out Of

Worst Drivers By State