The 50 Best States To Start a Business in 2025

While starting your own business can be expensive and a hit to your personal finances (if not successful), the number of businesses in the U.S. has grown in recent years. In 2023, 5.5 million businesses were started — a record-breaking amount following the COVID-19 pandemic and rising inflation.

Despite this increase, a report from Zapier said that nearly 63% of aspiring entrepreneurs said the biggest thing stopping them from starting a business is funding. However, perhaps knowing which states are the best for starting a business can help aspiring business owners with their financial concerns.

A recent study from Wix ranked all 50 states and found which one was the best to start your business in. The study analyzed several factors, including the cost of LLC registration, average annual wage, average hourly wage, corporate income tax and personal income tax to determine the score for each state.

Key Findings:

• Wix experts found that Mississippi is the best state to start a business in 2024

• Massachusetts is the worst state to start a business in 2024

• And Idaho businesses pay the lowest annual corporate electricity bill, on average

Listed below is the complete list of data from Wix’s recent study on the most affordable states to start your business in 2024.

Also here are 10 tips to starting a business with little funding.

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Mississippi

• LLC registration fee: $50

• LLC recurring fee: $0

• Annual corporate electricity bill: $562.84

• Average annual wage: $45,180

• Average hourly wage: $21.72

• Corporate income tax: 5%

• Personal tax: 4.7%

• Score: 8.9

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Kentucky

• LLC registration fee: $40

• LLC recurring fee: $15

• Annual corporate electricity bill: $606.42

• Average annual wage: $51,490

• Average hourly wage: $24.76

• Corporate income tax: 5%

• Personal tax: 4%

• Score: 8.35

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South Dakota

• LLC registration fee: $150

• LLC recurring fee: $50

• Annual corporate electricity bill: $551.31

• Average annual wage: $49,980

• Average hourly wage: $23.99

• Corporate income tax: 0%

• Personal tax: 0%

• Score: 8.31

South Carolina

• LLC registration fee: $110

• LLC recurring fee: $0

• Annual corporate electricity bill: $540.38

• Average annual wage: $50,650

• Average hourly wage: $24.35

• Corporate income tax: 5%

• Personal tax: 4.5%

• Score: 8.29

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Missouri

• LLC registration fee: $50

• LLC recurring fee: $0

• Annual corporate electricity bill: $594.65

• Average annual wage: $54,520

• Average hourly wage: $26.21

• Corporate income tax: 4%

• Personal tax: 4.8%

• Score: 8.25

Wyoming

• LLC registration fee: $100

• LLC recurring fee: $60

• Annual corporate electricity bill: $491.91

• Average annual wage: $54,440

• Average hourly wage: $26.17

• Corporate income tax: 0%

• Personal tax: 0%

• Score: 8.22

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Idaho

• LLC registration fee: $100

• LLC recurring fee: $0

• Annual corporate electricity bill: $393.60

• Average annual wage: $51,530

• Average hourly wage: $24.69

• Corporate income tax: 6.5%

• Personal tax: 5.8%

• Score: 8.12

West Virginia

• LLC registration fee: $100

• LLC recurring fee: $25

• Annual corporate electricity bill: $422.02

• Average annual wage: $49,170

• Average hourly wage: $23.64

• Corporate income tax: 6.5%

• Personal tax: 5.12%

• Score: 8.12

Indiana

• LLC registration fee: $95

• LLC recurring fee: $16

• Annual corporate electricity bill: $679.48

• Average annual wage: $53,500

• Average hourly wage: $20.24

• Corporate income tax: 4.9%

• Personal tax: 3.05%

• Score: 8.10

Arkansas

• LLC registration fee: $45

• LLC recurring fee: $150

• Annual corporate electricity bill: $495.24

• Average annual wage: $48,570

• Average hourly wage: $23.35

• Corporate income tax: 5.9%

• Personal tax: 4.8%

• Score: 8.04

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Ohio

• LLC registration fee: $99

• LLC recurring fee: $0

• Annual corporate electricity bill: $631.89

• Average annual wage: $56,530

• Average hourly wage: $27.18

• Corporate income tax: 0%

• Personal tax: 3.5%

• Score: 7.94

Montana

• LLC registration fee: $35

• LLC recurring fee: $20

• Annual corporate electricity bill: $389.56

• Average annual wage: $52,200

• Average hourly wage: $25.11

• Corporate income tax: 6.75%

• Personal tax: 5.9%

• Score: 7.94

New Mexico

• LLC registration fee: $50

• LLC recurring fee: $0

• Annual corporate electricity bill: $569.77

• Average annual wage: $54,400

• Average hourly wage: $26.15

• Corporate income tax: 5.9%

• Personal tax: 5.9%

• Score: 7.9

Oklahoma

• LLC registration fee: $100

• LLC recurring fee: $65

• Annual corporate electricity bill: $637.12

• Average annual wage: $50,940

• Average hourly wage: $24.49

• Corporate income tax: 4%

• Personal tax: 3.5%

• Score: 7.84

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Iowa

• LLC registration fee: $50

• LLC recurring fee: $15

• Annual corporate electricity bill: $446.87

• Average annual wage: $53,520

• Average hourly wage: $25.73

• Corporate income tax: 9.8%

• Personal tax: 5.7%

• Score: 7.51

Nevada

• LLC registration fee: $75

• LLC recurring fee: $350

• Annual corporate electricity bill: $604.64

• Average annual wage: $55,490

• Average hourly wage: $26.68

• Corporate income tax: 0%

• Personal tax: 2.5%

• Score: 7.49

Arizona

• LLC registration fee: $50

• LLC recurring fee: $0

• Annual corporate electricity bill: $834.14

• Average annual wage: $58,620

• Average hourly wage: $28.18

• Corporate income tax: 4.9%

• Personal tax: 2.5%

• Score: 7.45

Nebraska

• LLC registration fee: $100

• LLC recurring fee: $12.50

• Annual corporate electricity bill: $445.87

• Average annual wage: $55,070

• Average hourly wage: $26.48

• Corporate income tax: 7.5%

• Personal tax: 5.84%

• Score: 7.29

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Colorado

• LLC registration fee: $50

• LLC recurring fee: $10

• Annual corporate electricity bill: $520.15

• Average annual wage: $67,870

• Average hourly wage: $32.63

• Corporate income tax: 4.55%

• Personal tax: 4.4%

• Score: 7.27

Texas

• LLC registration fee: $300

• LLC recurring fee: $0

• Annual corporate electricity bill: $769.25

• Average annual wage: $57,300

• Average hourly wage: $27.55

• Corporate income tax: 0%

• Personal tax: 0%

• Score: 7.22

Louisiana

• LLC registration fee: $100

• LLC recurring fee: $30

• Annual corporate electricity bill: $781.82

• Average annual wage: $50,940

• Average hourly wage: $24.49

• Corporate income tax: 7.5%

• Personal tax: 4.25%

• Score: 7.18

Utah

• LLC registration fee: $54

• LLC recurring fee: $18

• Annual corporate electricity bill: $633.63

• Average annual wage: $57,360

• Average hourly wage: $27.58

• Corporate income tax: 4.95%

• Personal tax: 4.65%

• Score: 7.16

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Michigan

• LLC registration fee: $50

• LLC recurring fee: $25

• Annual corporate electricity bill: $699.98

• Average annual wage: $58,000

• Average hourly wage: $27.88

• Corporate income tax: 6%

• Personal tax: 4.25%

• Score: 7.02

North Carolina

• LLC registration fee: $125

• LLC recurring fee: $200

• Annual corporate electricity bill: $485.41

• Average annual wage: $56,220

• Average hourly wage: $27.03

• Corporate income tax: 2.5%

• Personal tax: 4.5%

• Score: 6.9

North Dakota

• LLC registration fee: $135

• LLC recurring fee: $50

• Annual corporate electricity bill: $769.84

• Average annual wage: $55,800

• Average hourly wage: $26.83

• Corporate income tax: 4.31%

• Personal tax: 2.5%

• Score: 6.9

Florida

• LLC registration fee: $125

• LLC recurring fee: $138.75

• Annual corporate electricity bill: $704.69

• Average annual wage: $55,980

• Average hourly wage: $26.91

• Corporate income tax: 5.5%

• Personal tax: 0%

• Score: 6.63

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Pennsylvania

• LLC registration fee: $125

• LLC recurring fee: $7

• Annual corporate electricity bill: $455.78

• Average annual wage: $58,470

• Average hourly wage: $28.11

• Corporate income tax: 9.99%

• Personal tax: 3.07%

• Score: 6.63

Tennessee

• LLC registration fee: $300

• LLC recurring fee: $300

• Annual corporate electricity bill: $677.21

• Average annual wage: $52,820

• Average hourly wage: $25.39

• Corporate income tax: 6.5%

• Personal tax: 0%

• Score: 6.59

Kansas

• LLC registration fee: $160

• LLC recurring fee: $50

• Annual corporate electricity bill: $616.46

• Average annual wage: $52,850

• Average hourly wage: $25.41

• Corporate income tax: 7%

• Personal tax: 5.7%

• Score: 6.55

Hawaii

• LLC registration fee: $50

• LLC recurring fee: $15

• Annual corporate electricity bill: $1,580.05

• Average annual wage: $61,420

• Average hourly wage: $23.35

• Corporate income tax: 6.4%

• Personal tax: 11%

• Score: 6.53

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Alabama

• LLC registration fee: $225

• LLC recurring fee: $110

• Annual corporate electricity bill: $645.68

• Average annual wage: $50,620

• Average hourly wage: $24.32

• Corporate income tax: 6.5%

• Personal tax: 5%

• Score: 6.53

Georgia

• LLC registration fee: $100

• LLC recurring fee: $50

• Annual corporate electricity bill: $822.28

• Average annual wage: $58,000

• Average hourly wage: $27.88

• Corporate income tax: 5.75%

• Personal tax: 5.49%

• Score: 6.27

New Hampshire

• LLC registration fee: $100

• LLC recurring fee: $100

• Annual corporate electricity bill: $573.59

• Average annual wage: $62,550

• Average hourly wage: $30.07

• Corporate income tax: 7.6%

• Personal tax: 3%

• Score: 6.25

Vermont

• LLC registration fee: $125

• LLC recurring fee: $35

• Annual corporate electricity bill: $448.28

• Average annual wage: $59,190

• Average hourly wage: $28.46

• Corporate income tax: $8.5%

• Personal tax: 8.75%

• Score: 5.82

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Wisconsin

• LLC registration fee: $170

• LLC recurring fee: $25

• Annual corporate electricity bill: $636.18

• Average annual wage: $56,120

• Average hourly wage: $26.98

• Corporate income tax: 7.9%

• Personal tax: 7.65%

• Score: 5.74

Maine

• LLC registration fee: $175

• LLC recurring fee: $85

• Annual corporate electricity bill: $499.07

• Average annual wage: $55,960

• Average hourly wage: $26.90

• Corporate income tax: 8.93%

• Personal tax: 7.15%

• Score: 5.63

Oregon

• LLC registration fee: $100

• LLC recurring fee: $100

• Annual corporate electricity bill: $530.76

• Average annual wage: $62,680

• Average hourly wage: $30.14

• Corporate income tax: 7.6%

• Personal tax: 9.9%

• Score: 5.57

Virginia

• LLC registration fee: $100

• LLC recurring fee: $50

• Annual corporate electricity bill: $1,261.39

• Average annual wage: $65,590

• Average hourly wage: $31.54

• Corporate income tax: 6%

• Personal tax: 5.75%

• Score: 5.55

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Washington

• LLC registration fee: $200

• LLC recurring fee: $70

• Annual corporate electricity bill: $591.58

• Average annual wage: $72,350

• Average hourly wage: $34.79

• Corporate income tax: 0%

• Personal tax: 7%

• Score: 5.43

Alaska

• LLC registration fee: $250

• LLC recurring fee: $50

• Annual corporate electricity bill: $763.79

• Average annual wage: $66,130

• Average hourly wage: $31.79

• Corporate income tax: 9.4%

• Personal tax: 0%

• Score: 5.31

Minnesota

• LLC registration fee: $135

• LLC recurring fee: $0

• Annual corporate electricity bill: $749.70

• Average annual wage: $63,640

• Average hourly wage: $30.60

• Corporate income tax: 9.8%

• Personal tax: 9.85%

• Score: 5.25

Delaware

• LLC registration fee: $110

• LLC recurring fee: $300

• Annual corporate electricity bill: $665.02

• Average annual wage: $62,260

• Average hourly wage: $29.93

• Corporate income tax: 8.7%

• Personal tax: 6.6%

• Score: 5.02

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Illinois

• LLC registration fee: $150

• LLC recurring fee: $75

• Annual corporate electricity bill: $698.64

• Average annual wage: $69,390

• Average hourly wage: $30.73

• Corporate income tax: 9.5%

• Personal tax: 4.95%

• Score: 4.88

Connecticut

• LLC registration fee: $120

• LLC recurring fee: $80

• Annual corporate electricity bill: $811.44

• Average annual wage: $69,310

• Average hourly wage: $33.32

• Corporate income tax: 7.4%

• Personal tax: 6.99%

• Score: 4.71

Maryland

• LLC registration fee: $100

• LLC recurring fee: $300

• Annual corporate electricity bill: $1,116.72

• Average annual wage: $69,750

• Average hourly wage: $33.53

• Corporate income tax: 8.25%

• Personal tax: 5.75%

• Score: 4.65

Rhode Island

• LLC registration fee: $150

• LLC recurring fee: $450

• Annual corporate electricity bill: $842.46

• Average annual wage: $64,530

• Average hourly wage: $31.03

• Corporate income tax: 7%

• Personal tax: 5.99%

• Score: 4.51

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New York

• LLC registration fee: $200

• LLC recurring fee: $29.50

• Annual corporate electricity bill: $937.82

• Average annual wage: $74,870

• Average hourly wage: $36

• Corporate income tax: 7.25%

• Personal tax: 10.9%

• Score: 4.22

New Jersey

• LLC registration fee: $125

• LLC recurring fee: $75

• Annual corporate electricity bill: $803.60

• Average annual wage: $70,890

• Average hourly wage: $34.08

• Corporate income tax: 11.5%

• Personal tax: 10.75%

• Score: 4.14

California

• LLC registration fee: $90

• LLC recurring fee: $810

• Annual corporate electricity bill: $1,173.66

• Average annual wage: $73,220

• Average hourly wage: $35.20

• Corporate income tax: 8.84%

• Personal tax: 13.3%

• Score: 4

Massachusetts

• LLC registration fee: $500

• LLC recurring fee: $500

• Annual corporate electricity bill: $872.99

• Average annual wage: $76,600

• Average hourly wage: $36.83

• Corporate income tax: 8%

• Personal tax: 9%

• Score: 3.47

Data is sourced from Wix and is accurate as of July 2024.

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This article originally appeared on GOBankingRates.com: The 50 Best States To Start a Business in 2025