Minnesota is the most expensive state to start a business, new study finds
MINNEAPOLIS -- A new study found that business owners in Minnesota encounter the most expenses in the country.
The study, from Simplify LLC, ranked the most and least expensive states to start a business, utilizing data from the U.S. Bureau of Labor Statistics, U.S. Small Business Administration, and U.S. Census Bureau.
Minnesota topped the ranking as the most expensive state to start a business.
"Business owners pay workers $60,958 on average annually, pay 9.8% corporate tax rate, and pay an average monthly commercial electric bill of $673.61," the study said.
The study noted that Minnesota has the highest corporate income tax rate in the country, followed by Illinois and Pennsylvania.
Though Minnesota was ranked as the most expensive, the study found that New York, Louisiana, and Alabama are not far behind.
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Minnesota was also ranked as one of the best states when it comes to percentage of working-age people in the workforce.
As for the least expensive state to start a business, Nevada took that honor. The study found business owners pay workers $51,885 on average annually. Their average monthly commercial electric bill is $463.41. They also do not pay a corporate tax rate.
Six of the top 10 least expensive states are in the western region of the country, where many states don't have a corporate income tax.
To see the full study, click here.