Relocating or expanding your business is no small feat. You want to ensure you choose a location that will set your company up for success now and in the future. As such, it’s essential to understand which states offer the most business-friendly environments overall.
After analyzing a range of factors — from tax incentives to infrastructure and workforce talent — we’ve rounded up the top states for business. Whether you’re a large enterprise or a scaling startup, these locales check many boxes for helping companies thrive. Keep reading for the inside scoop.
1. Texas
It should come as no surprise that Texas is one of America’s top states for business. This mammoth state has cultivated a stellar pro-business environment across its metros like Austin. Dallas is another city in the state that garners a lot of attention for it’s commitment to businesses.
For starters, Texas levies no personal income tax while keeping property taxes and the overall cost of living reasonably low. This helps companies attract and retain in-demand talent.
Texas also offers companies access to critical logistics infrastructure — international airports, shipping ports, and highways across the state. Not to mention huge incentives and deals to companies bringing jobs. And with no shortage of elite colleges and universities, the pipeline for skilled workers runs strong.
2. North Carolina
North Carolina is another one of the top business friendly states. Anchored by banking/finance hub Charlotte, the Tar Heel state continues providing a nurturing environment for business. NC keeps corporate income taxes low at just 2.5 percent or less. Couple this with moderate living costs, and the state delivers a compelling value proposition.
The Research Triangle Park — encompassing Raleigh, Durham, and Chapel Hill – is a magnet for tech and advanced manufacturing. Here, firms tap into exceptional academic and workforce talent pools stoked by Duke, UNC-Chapel Hill, and NC State. The diversity of industry strengths and solid STEM foundations make North Carolina a safe bet.
3. Utah
This Rocky Mountain state is one of the best states to do business. Utah brings together a desirable mix of innovative incentives, stellar infrastructure, and a young, educated populace. Firms locate new offices in business-centric cities like state capital Salt Lake City and growing hubs such as Ogden.
From tax breaks to grants and subsidies, Utah allows companies to set up shop. It also offers reliable power grids, widespread broadband internet, and an international airport connecting the state globally.
Plus, Utah touts one of America’s most dynamic, skilled workforces. Tech giants like Adobe and eBay have planted flags here, exploiting fertile conditions.
4. Florida
The Sunshine State retains its appeal for good reason. A potent cocktail of factors — zero personal income tax, rapid population and employment growth, and gateway location — propels Florida into the top five this year. Firms steadily flock to metros like Miami, Tampa, and Orlando to leverage these tailwinds.
As one of the best business states, Florida lets companies and workers keep more income in their pockets with low taxes. This, paired with beautiful weather and a vibrant, diversified economy, makes it easier for businesses to fill open positions. With access to airports/seaports plus proximity to Latin America, Florida-based outfits can quickly scale domestically and abroad.
5. Virginia
Virginia advances three spots this year, staking its claim as one of the best states for business. What’s behind the Old Dominion’s rise? For starters, competitive tax rates, incentives, and top-class infrastructure span its metro regions. Not to mention highly-ranked colleges feeding skilled talent.
With easy and close access to Washington D.C., Arlington is a major point of interest for federal employees. Global heavyweights like Amazon Web Services, Volkswagen, and Raytheon have recently expanded in Virginia, underscoring their pro-business momentum.
Firms are located in innovation clusters, like the cybersecurity hub, Tysons Corner, and emerging tech hotspot Richmond. With its mid-Atlantic perch, Virginia links companies directly into broader eastern US and international markets.
6. Arizona
Rapid expansions of the tech and advanced manufacturing sectors are propelling growth in the Grand Canyon State. Giants like Intel, Nike, and Amazon have announced multi-billion investments in new facilities across Phoenix, Tucson, and beyond over the past year.
Competitive taxes, limited regulations, and incentives for high-quality jobs are underpinning Arizona’s appeal. The state also spends heavily on infrastructure and education, including premier research institutions Arizona State University and the University of Arizona. This combination of assets convinces more companies to set up or expand operations annually.
7. Tennessee
Tennessee holds strong again thanks to plentiful job opportunities, moderate living costs, and strategic location. Firms are everywhere, from buzzing Nashville to revitalized Memphis and Knoxville, enticed by appealing incentive packages from state and local officials. Favorable regulatory and tax climates enable businesses to optimize bottom lines as well.
Look no further than corporate stalwarts FedEx, AutoZone, and Eastman Chemical to see how Tennessee nurtures significant enterprises. Additionally, the state provides superb logistics infrastructure, including seven ports, three cargo airports, and 16 interstate highways. This makes scaling distribution and manufacturing simpler for firms sizing up locations.
8. Colorado
Given its winning knowledge economy formula, Colorado stays among the top 10 business locales. Tech and financial services powerhouses increasingly cluster in the Centennial State to leverage a deep talent pool and stellar quality of life commanding scenic Denver, Boulder, and Colorado Springs.
Homegrown companies like Dish Network and relocated firms such as Palantir Technologies form Colorado’s entrepreneurial backbone. They’re drawn by research institutes, including the University of Colorado, feeding skilled graduates, investors, mentors, and support networks.
Outdoor recreation amenities also help attract in-demand workers. And pro-business regulatory/tax climates enable firms to pursue opportunities with flexibility.
9. Georgia
Resurgent Georgia rejoins our top 10 ranking — thanks again to surging tech and film/entertainment sectors buoying ATL, Savannah, and other metros statewide.
Corporate titans like NCR Corporation, Blackhall Studios, and Saia LTL Transport have recently established or expanded regional HQs. Events like 2022’s massive $5.5B Rivian EV factory reveal signals mounting interest from marquee names.
Grassroots efforts to strengthen infrastructure, foster talent, and streamline bureaucracies have paid dividends. Combine this with competitive taxes/living costs, plus access to 100 million+ customers within a day’s drive. Suddenly, the Peach State looks ripe for firms seeking growth runways.
10. Washington
The Evergreen State builds upon fundamental strengths — educated workforce, low electricity costs, and sturdy infrastructure — with mounting tech sector momentum. Seattle stands atop the pack while Spokane, Vancouver, and others gain steam as emerging hubs.
Global brands like Microsoft, Amazon, and Starbucks originated here for good reason. A steady talent pipeline flows from elite research institutions — think the University of Washington — into firms commercializing innovations. Reasonable tax rates and bureaucratic transparency further enable corporate development.
11. Ohio
The Buckeye State claws back into the top 10 on mounting momentum around electronics, biopharma, and distribution/logistics industries. Intel’s pending $100B investment in Columbus microchip factories underscores Ohio’s strides toward becoming a high-tech bastion.
State and local leaders also continue backing firms with incentives plus workforce training programs generating skilled employees. Significant metros like the state capital Columbus, Cleveland, Cincinnati, and Akron provide fertile ground for business launches and expansions.
Here, corporations access broad consumer reach — 50% of the US population within a day’s drive — plus efficient infrastructure linking sites regionally and nationally. With competitively low taxes and electricity costs factored in, too, Ohio looks increasingly appealing.
The Best States For Business: FAQs
What criteria determine the best states for business?
When selecting the best states for business, we analyze a broad mix of criteria — from tax rates, labor/utility costs, and real estate expenses to infrastructure assets, talent pools, incentives programs, and more. States earning high marks deliver an overall environment that empowers firms to maximize productivity and profitability.
Which state has the best tax incentives?
Utah and Arizona offer businesses the most attractive tax incentive packages. IRA-eligible companies relocating to or expanding in Utah can tap into refundable tax credits reaching over $85K per job created. Arizona also courts relocating/expanding firms with income, property, sales tax breaks, and workforce grants.
Does the quality of life factor influence the best states for business?
Absolutely. While low taxes and costs enable profit growth, quality lifestyle perks help attract and retain in-demand talent — an equally critical ingredient for scaling companies. Leading states like Colorado, North Carolina, and Washington offer pro-business climates and vibrant cultural amenities, great weather, schools, and access to nature benefiting workers.
Do infrastructure assets boost a state’s viability for business?
Infrastructure elements — highways, railways, airports, seaports, broadband fiber networks — allow businesses to access suppliers, talent, and customers regionally or globally. As such, well-developed infrastructure significantly makes states like Florida, Virginia, and Tennessee appealing for corporate expansions/relocations.
Final Thoughts
As your company looks to relocate or expand, leverage this analysis as a blueprint for narrowing potential locales. Just remember, nuances apply across metros within these states. Do your homework researching specifics around workforce, real estate, and incentives per area to make the sharpest choice.
If you want to move or expand your company to one of the best states for business, ARC Relocation can help. Contact ARC Relocation today to set up a free consultation call.