And the 7th least expensive state for starting a new business: Nebraska (The Good Life State)
Starting a business is hard no matter where you try it. Still, it can help to set up shop someplace where costs — from rent and labor costs to corporate taxes — are lower. If you currently live on either of the U.S. coasts, that might mean going farther inland, according to a?recent ranking?from online small business advisor SimplifyLLC. The cheapest U.S. state for starting a new business in 2025 is Utah, according to SimplifyLLC, which ranked every state based on affordability for businesses. The range of factors it considered included basic business costs, like corporate income tax rates and business filing fees, along with the cost and availability of workers, average costs of commercial rent and utilities, and the overall health of?each state’s business environment.? The “Beehive State” boasts some of the lowest corporate taxes in the U.S., with a top rate of 4.65%, as well as low utility costs and one of the lowest average annual wages at just under $64,000, SimplifyLLC said last month, citing data from the U.S. Bureau of Labor Statistics.?