New research has revealed the best states for business growth and Vermont came in fourth nationwide.
Business consulting firm Venture Smarter analyzed data from the U.S Bureau of Labor Statistics to discover the business growth rate in each state based on the number of establishments in December 2021 compared to December 2022.
Top of the list is Georgia, with a business growth rate of 13.50%. In December 2022, there were 397,515 business establishments compared to 350,189 in December 2021. Corporate income tax is set at a reasonable rate of 5.75% in Georgia, with the state also offering job tax credit to reduce corporate tax liability for eligible businesses.
In second place is Virginia, with a growth rate of 10.50%. The state offers many small business incentive programs, including the Virginia Enterprise Zone, which includes a tax exemption for rehabilitated structures and tax credits for creating employment.
Arizona is in third place with a business growth rate of 10.40%. The state has the 14th lowest corporate income tax rate in America at 4.9%.
Montana and Vermont are in joint fourth place, with both states seeing a business growth rate of 10.20%; Starting an LLC in Montana requires an initial filing fee of just $35, which is significantly lower than in other states, such as California, with a cost of $500. As well as this, Vermont citizens can take advantage of several business incentives, such as flexible profit distribution, which allows companies registered as LLCs to choose various ways to distribute profits.
Georgia—13.50%
Virginia —10.50%
Arizona —10.40%
Montana & Vermont —10.20%
Michigan —9.80%
South Carolina —9.60%
North Carolina —9.20%
Colorado & Hawaii —9.10%
Idaho —8.90%
Utah —8.40%
On the opposite end of the scale, Washington has the worst business growth rate of -16.80%. The state had 284,440 establishments in December 2022, which decreased by 47,644 in December 2022; Washington was the only state to witness a decrease of establishments.
A spokesperson from Venture Smarter has commented: “With the key benefits of starting a business in the states mentioned, it will be fascinating to witness the business growth rate over time and see how many more entrepreneurs thrive with the available support.”
“However, regardless of your state, it’s vital to research the fees you will be expected to pay as they can vary significantly across states – not to mention, there are many incentives to take advantage of if you are eligible that can make the process of starting a business smoother and cheaper.”
This information was provided by Venture Smarter, a team of expert consultants with years of experience who can offer advice and help accelerate your business growth.
For more information, visit:
venturesmarter.com.
