---
title: "Best States To Start A Business"
url: https://burnaze.com/article/cb947d08-9ee7-4efd-aa9a-bb6e5bdf744d
source: "Franchising.com"
original_url: https://www.franchising.com/articles/best_states_to_start_a_business.html
author: "Multi-Unit Franchisee"
category: "General"
published: 2019-08-01T07:00:00.000Z
modified: 2026-11-01T04:10:03.420Z
image: https://imgs.franchising.com/art/articles/4720_plate.jpg
---

# Best States To Start A Business

**TL;DR:** WalletHub compared all 50 US states across 26 indicators to identify the best and worst states to start a business, with Texas ranking as the best and Rhode Island as the worst. The study examined factors such as financing accessibility, human capital, and office-space affordability.

*By Multi-Unit Franchisee, originally published in Franchising.com on 2019-08-01. [Read the original](https://www.franchising.com/articles/best_states_to_start_a_business.html).*

## Story

Texas is best, Rhode island is the worst. That's according to the findings of personal-finance website WalletHub, which just compared all 50 U.S.

states across 26 key indicators of business startup success to identify the most fertile grounds to launch and grow a business. It's critical information for multi-unit franchisees looking to expand into other states. The study examined everything from financing accessibility to availability of human capital to office-space affordability.

Here are the Top 10 best and worst states: Best States to Start a Business Worst States to Start a Business 1 Texas 41 West Virginia 2 Utah 42 New York 3 Georgia 43 Vermont 4 North Dakota 44 Delaware 5 Oklahoma 45 Pennsylvania 6 Florida 46 Connecticut 7 Arizona 47 Hawaii 8 California 48 New Hampshire 9 Montana 49 New Jersey 10 Colorado 50 Rhode Island Some of the study's other key findings include: Iowa has the cheapest average annual rent for office space, $12.08 per square foot, which is 2.2 times cheaper than in New York, the state with the most expensive at $26.

66 per square foot. Mississippi has the lowest labor costs (median annual income), $42,009, which is 1.9 times lower than in Maryland, the state with the highest at $78,916.

Massachusetts has the highest share of college-educated population, 42.10 percent, which is 2.1 times higher than in West Virginia, the state with the lowest at 19.

90 percent. North Dakota has the most startups per 100,000 residents, 199.34, which is 2.

8 times more than in West Virginia, the state with the fewest at 70.23.

## Entities

- Franchising.com (publication)
- franchise expansion (topic)
- General (sector)
- texas (location)
- Multi-Unit Franchisee (person)
- Rhode Island (location)
- WalletHub (company)
- state ranking (topic)
- business startup (topic)

---
Originally reported by Multi-Unit Franchisee, Franchising.com (https://www.franchising.com/articles/best_states_to_start_a_business.html). Summarized by Burnaze (https://burnaze.com/article/cb947d08-9ee7-4efd-aa9a-bb6e5bdf744d).