Despite the pandemic, many small businesses have been popping up everywhere, mostly as a result of massive layoffs during the first quarter of the year. Indeed, Americans are launching new businesses at incredibly fast rates, with more than 3.2 million new enterprises recorded by the third quarter of this year. While these are incredibly fickle times, new business owners have decided to jump the gun in order to seize available opportunities and stay afloat.
One way to ensure your new business’ longevity and success in the market is by knowing where to launch it. In this post, we’ll take a look at three states where your business has a higher chance of thriving.
Nevada
Nevada has one of the fastest-growing economies in the country, which is due in part to the steady stream of new citizens from more expensive states like California and New York. After the housing crash, Nevada’s economy has rebounded significantly and continues to grow. In fact, many high-profile companies like Apple, Amazon, Tesla, and Google have all expanded operations in the state. Other factors that make the area attractive to businesses are the abatements for property and sales tax. And just like Wyoming, Nevada also doesn’t place state income tax on employee wages. Another benefit of starting a business in Nevada, especially if it’s an LLC, is that shareholders, officers, and members don’t need to be Nevada residents.
Oklahoma
Aside from having the fourth lowest cost of living in the country, Oklahoma is a very friendly place for new entrepreneurs. For one, Oklahoma ranks third when it comes to the best survival rate for startups in the country. According to statistics from the Chamber of Commerce, 81.51% of new businesses are able to weather their first year on average. Secondly, there’s also a recent uptick in small business lending in Oklahoma City, and this is boosted by the relatively low-income tax in the state.
To further ensure the survival and success of your Oklahoma business, be sure to find what kind of business structure works for you. For many businesses, incorporating as an LLC works well because this guarantees a clear divide between your personal and business assets, should any legal problems arise. To set up an LLC in Oklahoma, all you need to do is find a valid name, appoint a registered agent, file articles of organization, and finally apply for an employee identification number (EIN). Fortunately, most of these can be done online pretty easily. While it may seem like there are a lot of steps, it’s worth the effort as it adds a layer of protection to both your personal funds and your Oklahoma business.
Wyoming
Wyoming is one of the best states to start your business because its tax climate outranks most parts of the US. This is mostly because Wyoming doesn’t charge individual and corporate income tax. Additionally, the state also has a favorable tax rate that ranks in the top 25% of states for sales tax. But while the state’s working-age population has been steadily declining these past few years, Wyoming is still very much conducive to new businesses. There continues to be a high activity and survival rate for startups in the area. Furthermore, registering a new business in Wyoming does not require owners to be listed in the state’s public database. This means you’re less likely to be a target of corporate lawsuits.
There are a lot of factors that can affect the success of your new business — from your product and service concept, to your work ethic and employee management. But like we said, the environment where you decide to launch your new venture can also significantly influence how it’ll perform in the market. For more information on how to ensure the success of your business, be sure to check our post entitled ‘9 Ways to Stay Ahead of the Competition’.