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What are the most prominent states to create a startup online business?

According to the Small Business Administration, there are over 30 million small businesses in the United States. That is a lot of competition, no matter your industry. But if you are looking to start an online business, there are five states in particular that offer a great mix of resources, infrastructure, and opportunities.

In this article, we will take a closer look at each one, before explaining why many are already viewing Michigan as the one state of the five chosen that could be considered the most prominent for a startup online business.

These are the five states that can be considered ideal for online startups

As mentioned, there are five states that can be considered to be ideal for a startup that is considering creating an online business. Let’s take a look at each of them in detail…

1. Michigan

Michigan is a great place to start an online business, home to major research universities like the University of Michigan and Michigan State University, as well as a well-educated workforce. Additionally, the state offers several programs and incentives specifically for entrepreneurs, making it even more attractive for those looking to start their own businesses because of the startup ideas that they may have.

2. California

It should be no surprise that California is one of the best states for starting an online business. With its large population and central location on the West Coast, California provides easy access to markets both in the US and abroad. Additionally, the state has a long history of supporting startups and is home to some of the world’s most well-known tech companies.

3. Texas

Like California, Texas offers easy access to markets inside and outside the US. Additionally, the state has no personal income tax, which can be a major benefit for entrepreneurs. And with its large population, your online business has plenty of potential customers.

4. New York

New York may not be known as a startup haven like Silicon Valley, but that does not mean it is not a great place to start an online business. The state offers access to a large market (both in terms of customers and investors), world-class talent, and robust infrastructure. Additionally, New York City is home to a number of accelerators and incubators that can provide valuable resources for entrepreneurs.

5. Massachusetts

Massachusetts is another great state for starting an online business. The state has a long history of supporting entrepreneurship and innovation and is home to prestigious universities like Harvard and MIT that produce top-notch talent. Additionally, Boston is quickly becoming one of the country’s hottest startup scenes thanks to its numerous accelerators and incubators.

Michigan is seen as the ideal state for a startup to operate online

As mentioned, there are many that already have the opinion that Michigan is perhaps one of the ideal states across the US for online startup businesses. There are many reasons for this, with the change in laws regarding the iGaming and Sports Betting industry perhaps among one of the main indicators.

We have already seen many operators enter the market successfully, and this is because Michigan has regulated online casinos since 2019, thus providing the organizations that conduct their business on the internet with the perfect opportunities and breeding ground in order to be able to provide the best experiences possible.

Naturally, while the success of the betting industry online will have highlighted just how successful a state like Michigan can be for online businesses because of the amount of revenue that has been generated over the years since its introduction, it is important also to recognize that there are other factors that show just why the Great Lakes State can be considered to be one of the most prominent states in the entirety of the US.

An Abundance of Resources

When it comes to starting a business, having access to resources is key. In Michigan, there are plenty of resources available to entrepreneurs, from incubators and accelerators to funding and networking opportunities. There are also a wealth of educational resources, like the University of Michigan’s Center for Entrepreneurship, which offers classes and programs for aspiring entrepreneurs.

A Supportive Environment


In addition to having access to resources, it is also important to have a supportive environment. And in Michigan, there is no shortage of support for startups and entrepreneurs. The state government has prioritized supporting startups and small businesses, and numerous organizations are dedicated to helping entrepreneurs succeed.

A Vibrant Community

Last but not least, Michigan has a vibrant startup community. There are numerous events and meetups for startups and entrepreneurs, so you will never find yourself feeling alone on your entrepreneurial journey.

Indeed, each of these aspects plays a crucial role in ensuring online startups have the best possible platform to thrive and survive in whatever competitive space they may decide to enter, although there is no denying that firms will need to ensure they offer the right product/service that can be considered a solution to a problem or need that consumers have.

Final Thoughts

It is impossible not to recognize that starting an online business comes with unique challenges. From finding the right market to targeting potential customers, there is a lot to think about before taking the plunge into entrepreneurship.

Indeed, while being online can mean you are able to be virtual and can potentially offer your products/services to the rest of the US or even worldwide, it is also very important to ensure you set up in a place that can allow the organization to thrive.

Therefore, if you are looking for a great place to start your online business journey, these five states should definitely be at the top of your list, with Michigan perhaps thought to be among the most prominent and an opportunity that could be far too good to miss out on.

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