In this article, we will take a look at the 5 most business friendly states in the US. If you want to read our detailed analysis, you can go directly to 20 Most Business Friendly States in the US.
5. Nevada
Number of Business Applications (2023): 65,609
GDP per capita (2023): $104,816.19
Corporate Income Tax Rate (2024): N/A
Insider Monkey Score: 7.5
Nevada ranks fifth on our list of the most business friendly states in the US, with an Insider Monkey score of 7.5. Only business entities grossing over $4 million in revenue per annum are required to file a Commerce Tax Return in Nevada. The tax rate is decided based on the gross receipts of a business. There is no state-level corporate income tax in Nevada.
4. Washington
Number of Business Applications (2023): 97,311
GDP per capita (2023): $90,702.50
Corporate Income Tax Rate (2024): N/A
Insider Monkey Score: 6.5
Washington ranks fourth on our list of the most business friendly states in the US. The state of Washington does not have a personal or corporate income tax, however, business owners must pay a public utility tax. The public utility tax rate is determined using the gross receipts of a business. For example, a retail business may have to submit retail sales tax. Washington logged over $90,000 in GDP per capita in 2023.
3. Georgia
Number of Business Applications (2023): 277,588
GDP per capita (2023): $94,046.02
Corporate Income Tax Rate (2024): 5.75%
Insider Monkey Score: 5.75
Georgia is one of the best states in the US to start a business in, with an Insider Monkey score of 5.75. Georgia has a corporate income tax rate of 5.75% for all levels of income. Georgia has a GDP per capita of $94,000 and logged more than 275,000 new business applications in 2023.
2. Florida
Number of Business Applications (2023): 664,567
GDP per capita (2023): $91,814.08
Corporate Income Tax Rate (2024): 5.5%
Insider Monkey Score: 4.75
With an Insider Monkey score of 4.75, Florida ranks second on our list of the most business friendly states in the US. Over 660,000 new business applications were filed in 2023, the highest among all states. The corporate income tax in Florida is 5.5%, as of January 1, for income earned above $50,000.
1. Colorado
Number of Business Applications (2023): 138,867
GDP per capita (2023): $257,442.13
Corporate Income Tax Rate (2024): 4.4%
Insider Monkey Score: 4.5
Colorado ranks first on our list of the most business friendly states in the United States. Colorado has a corporate income tax rate of 4.4% for all income levels. The state logged nearly 140,000 new business applications in 2023.
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