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The 10 Best States for Starting a New Business in 2025

Florida is an appealing option.

ByCaLea Johnson|
Not all states have equal opportunities for new businesses. WalletHub’s 2025 rankings show the top 10 states to kickstart your adventure.
Not all states have equal opportunities for new businesses. WalletHub’s 2025 rankings show the top 10 states to kickstart your adventure. | Kelvin Murray/GettyImages

There are plenty of factors to consider before starting your own business. If you’re thinking about taking the risk, location is key. According to WalletHub, there states are best suited for budding entrepreneurs in 2025.

To compile the list below, researchers compared three dimensions—“Business Environment,” “Access to Resources,” and “Business Costs”—across all 50 states. These factors were measured using 25 weighted metrics that fell under the larger umbrellas. For example, the average length of a work week was considered under the Business Environment category, while working-age population growth fell under Access to Resources. WalletHub then calculated each state’s weighted average using the metrics and ranked them.

The strongest states for new business ventures were those that boasted benefits like low corporate tax rates, strong economies, and plenty of reliable workers. Having active, engaged customers helped, too.

WalletHub determined that several Midwestern and Southern states are ideal for starting a business in 2025, with Florida coming out on top. It has the second-most startups per capita and the most adults participating in entrepreneurship. One reason why the Sunshine State ranks No.1 for starting a business is because it has the 11th-highest business revenue growth rate.

Georgia is second on the list. Business owners in the state have the eighth-lowest corporate tax rate and the sixth-highest growth rate for business revenues in the country. Utah comes in third, mainly because it’s easier to get business loans in the state than others. It also has a strong job growth rate and high year-over-year employment growth.

On the other hand, some of the worst states for starting a business include New Jersey, Connecticut, and Rhode Island. Entrepreneurs should be aware that the office space and labor costs in New Jersey are among the highest in the country. Connecticut, meanwhile, has the smallest average growth in the number of small businesses, and in Rhode Island access to financing is limited.

You can find the full top 10 best states for starting a business in 2025 below:

  1. Florida
  2. Georgia
  3. Utah
  4. Texas
  5. Idaho
  6. Oklahoma
  7. Nevada
  8. Colorado
  9. Arizona
  10. Kentucky

Visit WalletHub for the complete list and more details of the study.

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