Best Places to Start a Business in the US
Share on facebook
Share on twitter
Share on linkedin

10 Best Places to Start a Business in the US in 2023

Are you setting up a business in the United States of America? Well, if you’re a resident of the US, this might seem like a simple enough task – you’ll probably choose to incorporate it in your home state.

However, if you’re not from the area, choosing the best place to start a business in the USA can feel like an overwhelmingly large task.

The 10 Best Places to Start a Business in the USA

There are over fifty states to choose from, with varying rules, regulations, and rates of taxation. So, here is a handful of some of the best places to start a business in the USA to get you started…

 places to start a business

1. Nevada

If you can cope with the high temperatures, you might be tempted to set up your business in Las Vegas. Las Vegas is one of the most tax-friendly cities in the country with no business income tax, gift tax, franchise tax, or personal income tax. The laws in Nevada are favorable for new businesses too, placing an emphasis on privacy.

Join Our Small Business Community

Get the latest news, resources and tips to help you and your small business succeed.

2. Georgia

With one of the busiest airports in the world and a population of more than 5 million people, there’s plenty of business to be done in Atlanta, Georgia. It’s currently home to a number of Fortune 500 countries (including Delta Airlines, the Home Depot, and United Parcel Service), so you’ll be in good company if you want to set up here. You can learn more about corporate income and tax if you visit

3. Texas

If you’re looking for a location that borders Mexico and the USA and want to draw on a bilingual staff force, speaking both English and Spanish (80% of El Paso’s population is Hispanic), El Paso is a good place to be. Also, office rents and energy bills here are cheaper than many other places in the USA, making it a comfortable place for a fledgling business to grow.

Related Readings:

Business Ideas for San Antonio, Texas

Startup Ideas for Houston, Texas

Business Ideas for Dallas, Texas

Checklist for Starting Business in Texas

4. Florida

Fancy setting up in a city that features in the top ten tax-friendly locations in the USA for small businesses? Well, that’s Sarasota, Florida. The sunshine state draws huge numbers of tourists, accounting for $2.6 billion in revenue – perfect if your business will be relying on tourism in any way.

Related Readings:

Small Business Ideas for Jacksonville Florida

5. Tennessee

For start-up businesses keeping a close eye on the finances, Nashville is a good place to be. There’s no state income tax to pay in Tennessee (though there is something called Hall Tax on dividends and interest), and while it’s known as ‘music city’, it’s also a hub for the healthcare industry. There’s also a strong pool of graduates here, with a young population ready to fill jobs created by innovative businesses coming to the area. So, whether you want to hire employees directly, or would prefer to use a company to interview and handle the HR logistics for you (if so, check out, there’s a strong workforce ready and waiting.

Related Readings:

Checklist for Starting Business in Tennessee

Business Ideas for Memphis Tennessee

Business Ideas for Chattanooga Tennessee

6. Wyoming

Wyoming has substantially lower-than-average initial and annual fees for businesses. This is great news if plowing money back into the business is your priority. While the case law in Wyoming isn’t tested (unlike in Nevada or Delaware), the low cost of setting up here is very attractive for many entrepreneurs. However, just be aware that Wyoming is a very ‘rural’ area. You’ll need to factor that into your business model: its biggest city, Cheyenne, has a population of just over 60,000 people. Rock Springs (although much smaller) might be better if your business draws on nature tourism.

7. Delaware

Delaware has long been a popular choice for businesses looking to set up in the USA – in fact, it’s where approximately 60% of Fortune 500 companies are incorporated. It’s a favorite location for many attorneys, and that’s because of its Chancery Court – a special court dedicated to business entity cases. This is a very attractive reason to set up a business, as with so much tested case law to hand, you’ll be able to save thousands by avoiding litigation. If Delaware, Nevada, or Wyoming sound attractive to you, check out to explore your options in more detail.

8. Pennsylvania

If you’re looking for the best places to start a business in the USA, you should consider Pennsylvania. In this state, no matter what your business is there’s almost guaranteed to be a region that could support it. Pennsylvania cities and towns range from super-rural to burgeoning urban landscapes (think Pittsburgh or Philadelphia!). Because of this, if you have a good idea, you can probably find a good place to start it here.

For ideas on which businesses are the best to start in Pennsylvania, check out these related readings:

Your Ultimate Checklist to Set Up a Business in Pennsylvania, USA

28 Creative Small Businesses to Open Now in Philadelphia in 2021

9. California

California is one of the best places to start a business in the USA. Like Pennsylvania, you can find a great region for almost any business type. If you want to start an entertainment or marketing business, Southern California can suit your needs in a huge way. LA is full of talent and people looking for jobs in these types of areas! If you’re starting a tech business, San Francisco and Silicon Valley in Northern California are amazing places to network and source-driven employees.

With many college towns and people moving there for a multitude of reasons, your startup could be looking at some great success with the right formula.

Check out these articles on Cali business:

26 Awesome Small Business Ideas for San Francisco, California in 2021

27 Interesting Business Ideas for San Diego, CA in 2021

28 Small Business Ideas for Los Angeles, California in 2021

10. New York

Ah, we saved one of the best for last. New York is one of the best cities to start a business. As a result, it has garnered nicknames like “the melting pot” and “the city that never sleeps.” So, you could find some great opportunities in New York to begin your startup adventure. There are so many favorable laws for small businesses that promote growth and success.

With a population of almost 20 million people, you can find so many demographics that can become your target audience.

The Bottom Line

Of course, the best place to set up your business may not be on this list. What’s right for your business will depend on a variety of factors beyond tax rates or talent pools. These include things such as proximity to infrastructure, where you intend to be trading, or what kind of investment you’re hoping to attract. Do thorough research before deciding where to incorporate, and seek advice from trusted business contacts and tax advisors before proceeding.

Join Our Small Business Community

Get the latest news, resources and tips to help you and your small business succeed.