A new study by Simplify LLC finds that Florida is again in the top 10 for the best place to start a business.
Simplify LLC analyzed all 50 states from the most recent data from the Census Bureau, Bureau of Economic Analysis, and Federation of Tax Administrators.
The Small Business Administration said in 2023, a record 5.5 million new businesses were formed in the U.S., marking the third consecutive year of historic entrepreneurism in America.
Seven factors were analyzed in all 50 states and D.C. Here is how Florida ranked in each category:
- Net Migration of Educated Workers: 144,915 (No. 1)
- Job Creation: 12.7% increase (No. 6)
- Consumer Spending: 3.4% increase (No. 15)
- Corporate Tax Rate: 5.5% (No. 20)
- New Business Formation: 7.9% increase (Ranks No. 28)
- Business Success: 12.7% say their business is “performing excellently” (No. 34)
- Inflation since 2021: 19% increase (No. 35)
- The top 10 states to start a business this year were Wyoming, Texas, South Dakota, Florida, Missouri, Tennessee, Delaware, Kansas, North Carolina, and Nevada.
The Worst States
Illinois is the worst state to start a business, driven by a high maximum corporate tax rate (9.5%), poor business performance (8.1% say they’re doing excellent), and weak mobility for educated workers. While about 105,000 educated adults moved into the state in 2022, another 159,000 moved out, meaning the state’s net migration for educated workforce was nearly -54,000. Next up, California ranked No. 50. Although it has a high job creation rate (12.3) and has seen less inflation since 2021 than most other states (16.9%), California is experiencing an exodus of educated workers, with nearly 149,000 more leaving the state than moving there in 2022. It also has a high maximum corporate tax rate (8.84%) and just 9.8% of businesses say their recent performance is excellent, one of the worst rates in the U.S.
