These are the five best states to start a business

Starting a business from scratch is not for the faint of heart, but some states make it easier for founders to succeed than others.

A recent study by Swoop Funding ranked US states based on 11 metrics including venture capital investments, sales tax rates, health insurance costs, and availability of coworking spaces, and found that these are the best states in the country for… Launching a business:

1) Texas

“Texas is a magnet for entrepreneurs with no state income tax, low cost of living, and business-friendly regulations,” said Andrea Reynolds, CEO of Swoop Funding. Fox Business. “Austin’s Silicon Hills region attracts top tech talent, while Houston and Dallas lead in energy, logistics and fintech. The state’s strong startup support network and universities create an ideal launching pad for growth.”

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2) Ohio

Reynolds says Ohio is emerging as an affordable startup hub with strong investments in industries Like health careFood manufacturing and technology.

“Programs like the Ohio Venture Fund and OhioXcelerate provide vital funding and mentorship, with support from top universities and accelerators, creating a diverse and collaborative environment for growth,” she noted.

3) North Carolina

Swoop Funding CEO says North Carolina has built a strong startup ecosystem supported by major research universities and a highly skilled workforce.

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“The state is a leader in biotechnology, life sciences and clean energy, with high venture capital investments making it an attractive alternative to traditional startup hubs,” Reynolds said.

4) Mississippi

The state of Mississippi supports startups through initiatives like CoBuilders, supported by partners like Microsoft, which provide mentorship and funding.

Reynolds explained that the state’s focus on the blue economy and its low operating costs make it an attractive destination for innovative projects.

5) Florida

Without a country income tax With strong international relationships, Florida provides founders with great opportunities for expansion.

“Florida has rapidly developed into a major destination for startups, especially in the fintech and blockchain space,” Reynolds said. “Miami is now a global hub for digital finance, while Orlando and Tampa are thriving in gaming, tourism and healthcare.”

What the Swoop study showed is that there is no single formula for startup success, Reynolds says. Some states, such as Texas and Florida, are distinguished by their tax advantages and business-friendly environments, while others, such as North Carolina and Ohio, offer cost-effective solutions and a skilled workforce.

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“Entrepreneurs should look beyond just financing opportunities and consider how each country’s strengths align with their business needs,” she added. “Choosing the right location can make a big difference in measuring successfully.”