Florida ranked best state to start a small business

Florida ranked best state to start a small business (Courtesy of the Jacksonville Business Journal) — Capital on Tap, a business credit card expert, has conducted a new research study to determine the best and worst US states for starting a small business, with Florida landing at the top of the list.

The study analyzed eight factors including new firm survival rates, corporate tax rates, and the number of entrepreneurs per state to determine the viability of starting a small business in each state.

Florida emerged as the best state to start a small business with a 5.5% corporate tax rate — allowing more money to flow back into the business — and the third-largest amount of small business loans secured per total number of employees at $4,913. When compared with all other states, Florida came out on top as providing the most jobs created by start-ups per 1,000 residents living in the state. This factor not only shows that businesses in Florida are viable enough to employ staff, but that these businesses are improving the local economy, the report noted.

“Entrepreneurship is driven by the desire for independence. This includes the freedom to pursue your passion, choose your workplace and working hours, and foster personal growth,” Capital on Tap COO Damian Brychcy said. “While starting a business entails significant risks, including financial, reputational and scalability risks, this research provides valuable insights when it comes to the business climate in different states to help new entrepreneurs in making informed decisions, and creating a favorable environment for their business.”

Texas ranked just behind the sunshine state due to its small-business-friendly tax framework.It is one of the only five US states that do not levy any business tax or personal income tax. In Texas, all businesses with total revenues of less than $1.08 million, or total tax liabilities of less than $1,000, owe no franchise tax. Additionally, small businesses in Texas secured the fifth-highest average loan per employee at $4,811, according to the report.

Idaho, Nevada and North Carolina rounded out the top five states.

The study was based on data from the Bureau of Labor Statistics and factored in percentage of adults becoming entrepreneurs per month, jobs created by start-ups per 1,000 people, percentage of new firms surviving one year after founding and number of new employer business per 1,000 people, among other factors.

Photo courtesy of WorldAtlas.com