When considering whether or not to start a small business, there are several factors to keep in mind while determining where you would start your business. Fit Small Business compiled a 2018 ranking of all 50 states to determine the best states to start a small business, using the following categories:
- Taxes – This includes corporate, sales, property tax, individual income, and unemployment insurance tax rates. The ranking demonstrates how much you can expect that your business would have to pay in taxes in the state ranked.
- Labor Market – This category was assessed by including unemployment rates well as education levels (% of adults ages 25 to 34 who have attained at least a bachelor’s degree). This is meant to measure availability of desirable employees and the overall strength of this market in the state ranked.
- Cost of Living – This includes costs of utilities, grocery, healthcare, housing, and transportation.
- Quality of Life – This category is based on access to education, physical safety, and healthcare.
- Cost to Start a Business – Using per capita income in the state ranked, this is meant to evaluate costs to staff your business as well as the per sq. ft/year cost to rent a commercial building.
- Startup Activity – Meant to illustrate how likely new businesses are to succeed or fail in the state ranked, this represents the # and survivability of new businesses in that state.
- Access to Capital – This assesses the likelihood of your business attaining startup capital by evaluating the size and # of small business loans granted and by measuring access to capital based on the availability and amount of venture capital funds.
Taking into account these factors, the survey ranked Florida 20th out of the 50 states, with each of the categories above ranked accordingly:
- Taxes: 4 out of 50
- Labor Market: 31 out of 50
- Cost of Living: 27 out of 50
- Quality of Life: 25 out of 50
- Cost to Start a business: 33 out of 50
- Startup Activity: 25 out of 50
- Access to Capital: 40 out of 50
Florida is home to some of the most entrepreneurial cities in the country, Miami being one of the best cities for startups and Orlando not far behind. Only C-Corporations are required to pay state income tax, meaning that the vast majority of small businesses in FL pay none. If that’s not enough to entice you, consider that Florida is home to possibly the only Amish beach resort in the world, is the only place in the world where alligators and crocodiles coexist in the wild, is home to the happiest place on earth, and that nowhere in the state are you more than 60 miles from the nearest body of salt water. One of the top states with the highest average growth in the number of small businesses, Florida just may be the right place for you and your new business!