Study claims Illinois one of most expensive places to start a business. Here’s why

The research team at Zibtek ranked Illinois the fifth-most expensive state behind California, New Jersey, Massachusetts and New York. Illinois has the nation’s second-highest corporate tax rate at 9.5%, along with the second-highest property tax rate in the U.S. The study found that Illinois’ income tax rate and electricity costs are more moderate, ranking 27th and 25th most expensive in the country.

Illinois business: Here’s where Illinois ranks when it comes to small business taxes, according to study

Why is Illinois one of the worst states to start a business?

Zibtek looked at nine key factors to determine the most and least expensive states for a startup; these include income tax, corporate tax, property tax, average monthly electric bill, sales tax, LLC business filing fees, gross domestic product (GDP) per capita, personal consumption expenditures (PCE) per capita, and internet crime losses. Zibtek assigned each factor a numerical value to identify the most expensive states to start a business.