Most Business-Friendly States 2025: Rankings & Data
Based on 2025 rankings from leading business publications and economic data, these states offer the best environments for starting and growing a business.
6
Nevada, Ohio, Texas, Washington, Wyoming, South Dakota
Source: Tax Foundation 2025
Wyoming
Followed by South Dakota and Alaska
Source: Tax Foundation State Tax Competitiveness Index 2025
Idaho
3.9% annual growth rate
Source: Bureau of Economic Analysis Q3 2024
2025 Business-Friendly State Rankings
Tax Foundation 2025
State Tax Competitiveness Index
- 1. Wyoming No corporate or individual income tax
- 2. South Dakota No corporate or individual income tax
- 3. Alaska No individual income tax
- 4. Florida No individual income tax
- 5. Montana 6.5% corporate tax
CNBC 2025
Top States for Business
- 1. North Carolina Economy & infrastructure
- 2. Virginia Business friendliness
- 3. Tennessee Low costs
- 4. Georgia Workforce
- 5. Minnesota Quality of life
WalletHub 2025
Best States to Start a Business
- 1. Florida Business environment
- 2. Texas Access to resources
- 3. Georgia Business costs
- 4. California Access to financing
- 5. Colorado Educated workforce
State Tax Rates Comparison 2025
| State | Corporate Tax Rate | Individual Income Tax | Sales Tax | Property Tax Rank |
|---|---|---|---|---|
| Wyoming | 0% | 0% | 4% | 37th (Low) |
| Florida | 5.5% | 0% | 6% | 26th (Medium) |
| Texas | 0% (Franchise tax) | 0% | 6.25% | 7th (High) |
| Nevada | 0% | 0% | 6.85% | 39th (Low) |
| Delaware | 8.7% | 2.2-6.6% | 0% | 47th (Very Low) |
| North Carolina | 2.5% | 4.5% | 4.75% | 31st (Medium) |
Best States for LLC Formation
While you can form an LLC in any state, these five states offer unique advantages for business owners:
Wyoming
LLC Formation Costs & Requirements
Filing Fee
$100
Annual Fee
$60
Franchise Tax
None
1st Year Total
$160
Processing Time
3-5 business days
5-Year Cost Projection
Total over 5 years
$400
Average per year
$80
Delaware
LLC Formation Costs & Requirements
Filing Fee
$90
Annual Fee
$300
Franchise Tax
$300
1st Year Total
$690
Processing Time
5-10 business days
5-Year Cost Projection
Total over 5 years
$3090
Average per year
$618
Nevada
LLC Formation Costs & Requirements
Filing Fee
$75
Annual Fee
$350
Franchise Tax
None
1st Year Total
$425
Processing Time
1-2 business days
5-Year Cost Projection
Total over 5 years
$1825
Average per year
$365
Florida
LLC Formation Costs & Requirements
Filing Fee
$125
Annual Fee
$138.75
Franchise Tax
None
1st Year Total
$263.75
Processing Time
3-5 business days
5-Year Cost Projection
Total over 5 years
$818.75
Average per year
$164
Texas
LLC Formation Costs & Requirements
Filing Fee
$300
Annual Fee
FREE
Franchise Tax
None
1st Year Total
$300
Processing Time
5-7 business days
5-Year Cost Projection
Total over 5 years
$300
Average per year
$60
South Dakota
LLC Formation Costs & Requirements
Filing Fee
$150
Annual Fee
$50
Franchise Tax
None
1st Year Total
$200
Processing Time
3-5 business days
5-Year Cost Projection
Total over 5 years
$400
Average per year
$80
State Economic Growth 2024-2025
Fastest Growing State Economies
Lowest Unemployment Rates
Key Factors in Business-Friendly Rankings
Tax Environment
- • Corporate income tax rates (0% in 6 states)
- • Personal income tax rates (0% in 9 states)
- • Sales tax and property tax burdens
- • Tax incentives and credits for businesses
Regulatory Climate
- • Ease of business registration and licensing
- • Labor laws and right-to-work status
- • Environmental regulations
- • Zoning and land use flexibility
Economic Factors
- • Cost of living and real estate prices
- • Access to capital and financing
- • Market size and consumer spending power
- • Industry clusters and supply chains
Infrastructure & Workforce
- • Transportation and logistics networks
- • Broadband and technology infrastructure
- • Education levels and workforce skills
- • University systems and research centers
About These Rankings
Different organizations use varying methodologies to rank states for business friendliness. The Tax Foundation focuses primarily on tax competitiveness, CNBC evaluates 88 metrics across 10 categories including workforce and infrastructure, while WalletHub analyzes 25 key indicators of startup success. Each ranking provides valuable insights depending on your business priorities.
When choosing a state for your business, consider factors most relevant to your industry, such as specific tax advantages, workforce availability, proximity to customers and suppliers, and quality of life factors that affect employee recruitment and retention.
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Compare LLC Formation ServicesSources & References
- • Tax Foundation: 2025 State Tax Competitiveness Index
- • CNBC: America's Top States for Business 2025
- • WalletHub: Best States to Start a Business 2025
- • Bureau of Economic Analysis: GDP by State
- • Bureau of Labor Statistics: State Unemployment Rates
- • U.S. Census Bureau: Statistics of U.S. Businesses