Minnesota has one of the highest tax rates for businesses, at 9.8 percent. It also has a high labor cost, with the average annual wage exceeding $60,000.
Simplify used data from the Census Bureau, the Bureau of Labor Statistics and the Tax Foundation.
States were ranked based on nine categories, including corporate income tax rates, business filing fees, average annual income, labor force participation rate, percentage of adults over 25 with a bachelor’s degree, average monthly commercial electric bills, available commercial real estate, amount of small-business lending per capita and business survival rates.
Nine most expensive states to start a business:
1. Minnesota
2. New York
3. Louisiana
4. Alabama
5. Alaska
6. Wisconsin
7. West Virginia
8. Nebraska
9. Kansas
