Despite the events of the past year, 2021 is an ideal time to start a business, as the pandemic has caused people to flock to the online sphere. A study by The Pew Research Center reveals that 53% of Americans find the internet to be essential for them during the pandemic, while 34% find it “important, but not essential.” This statistic is proof that now is the time to build a company, as the increased internet traffic makes it easier to promote and advertise one’s goods or services.
Though current events make it a good idea to start a business venture, beginning entrepreneurs still need to put a lot of thought into how they want to build up their company. One of the most important things to consider, for instance, is where you’ll be basing your business. If you need some guidance in that department, read on, because we’ll be listing five of the best states to open a business in 2021.
Though California is notorious for having among the highest taxes in the country, it’s still a great place to start a company, be it a corporation or an LLC. For one, it’s filled with college towns where you’ll find plenty of talented people to hire. Plus, it’s a place where almost every type of business has an existing market, from restaurant businesses to entertainment companies. If you’re looking to start a technology business, then Silicon Valley is the place to be. There are tons of companies to learn from and experts to build a network with.
Texas has the country’s second-largest economy (next to California) and is the fourth highest in terms of the increase in small businesses, making it startup-friendly. The state also borders Mexico, giving business owners the option to hire bilingual staff. Finally, office rental fees and energy bills are considerably cheaper here than in the rest of the country, so fledgling businesses will have more resources to devote to growth.
Delaware is an ideal state to open a business, given that it has no sales taxes. This applies whether the company is physically based in Delaware or outside. Plus, there are no corporate income taxes on goods or services. But what sets this state apart from the rest is its Chancery Court, a court dedicated to business entity cases. This makes it easier to enlist legal help and speeds up business-related court proceedings.
Next is Florida — a state that continually ranks among the most entrepreneur-friendly states in the country. And there’s a good reason for this. Entrepreneurs looking to start an LLC in the Florida have plenty to look forward to, such as a large and diverse pool of talent, excellent state infrastructure, and a rebounding economy. Key to the success of many Florida-based entrepreneurs is the business-friendly tax climate, too, as personal income is not taxed on the state level. This is especially beneficial for small entrepreneurs running LLCs or sole proprietorships. To add to that, Florida draws thousands of tourists yearly, providing more opportunities for you to make sales.
Lastly, there’s Nevada, one of the most tax-friendly states in the country. It has no business income tax, franchise tax, gift tax, or personal income tax. This is because most of Nevada’s tax revenue comes from the casino and hospitality industries. This gives business owners the opportunity to devote most of their income to growing their company.
Those were five of the best states to start a business in 2021. Each one is beneficial to entrepreneurs in different ways, so make sure to do more research before making your decision. If you want to learn more, check out our List of the Most Tax-Friendly States article. It’ll give you an idea of how much your company will earn should you decide to start a business in a particular state.