The 10 Best and Worst States for Small Business

Thinking of starting a small business? Our infographic breaks down the best and worst states for business by real change in GDP, top level state income tax, and number of INC 5000 businesses. Whether you’re starting a web firm or a traditional brick and mortar business, this infographic provides highly-useful information with regard to the incorporation decision process. Local economic climates and state taxes can be a heavy burden on web startups and other small businesses. Making the right decision can save you thousands of dollars in the end; it did for us.

Additionally, certain states my have additional legislation that taxes eCommerce (especially dropshipping) and affiliate marketing businesses substantially more than other states. If you are or are looking to start a web-based firm–in any vertical–this neatly organized data will provide you with a quick breakdown of where you should be looking and what to consider when starting your small business.

Here’s the research, neatly organized for your consumption.

What do you think? Are we right on the money or way off base? Leave your comments below.

This inforgraphic was designed by Ryan Howard, Chief Strategy Architect at Complete Web Resources – SEO for Small Business. CWR helps small businesses get found on the web and provides digitial marketing refinements for large, national firms.

Image Courtesy:   aidanmorgan

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  1. Hi,
    This is an interesting infographic but it doesn’t tell a complete story or create a neat conclusion. For instance, if the states with the highest income tax rates are the “worst” states to start a small business then why are there vastly more fortune 5000 businesses in those very same states? Look at your totals in the pie charts at the bottom…there are almost double the number of Fortune 5000 businesses listed in the “worst” states pie chart. In addition, the change in gdp numbers is not substantially different between the two sets of states. Both have several with close to 2.0 increase in gdp and several much lower… neither list is showing enormous success or failure in either direction. So, it would seem to me that there is more to the story about where to start your small business.
    I started my small business in Vermont so you can see that I made my decision based on broader choices. I do think this is an interesting infographic, just not sure I agree with the categorization of best and worst based on the criteria identified.
    Thanks for sharing!

    • SmallBizViewpoints says:

      Laura – Thanks for your comments. I agree. These are few of the criteria that you could use to make the decision about locating your business. Obviously, there are more factors than these you need to consider before making final decision.


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