Do you have a business idea that you’ve been dreaming of? Well, you’ve come to the right place.
literally.
If you already live in Ohio, it’s a great place to start a small business. Ohio is rated the best place in the United States to start a small business by Finfare’s Small Business Index.
Seven factors were used to determine the small business index. The index focuses on the various costs of doing business in a particular state, the availability of commercial space, and the success rate of small businesses operating within the state.
Most of these factors place Ohio in a fairly good position compared to other states, with the highest Small Business Index score of 596.8.
How much does it cost to start a business in Ohio? Two factors in Ohio’s favor
Ohio received the highest score in the Finfare rankings thanks to the state’s low cost of doing business. The Buckeye State’s tax rates and minimum wage are particularly attractive.
Ohio’s corporate tax rate is 0%, which is a tax levied on business profits by the federal and state governments. Nevada, South Dakota, Texas, Washington, and Wyoming also have no corporate tax.
Small businesses in Ohio that make less than $385,000 per year can pay their employees $7.25 per hour (the federal minimum wage), while companies that make more than $385,000 per year adhere to a minimum wage of $10.45 per hour.
Ohio business owners are able to pay less in state unemployment taxes due to lower wage levels.
Additionally, low commercial electric rates and LLC rates allow Ohio entrepreneurs to reduce business expenses.
What is the business survival rate in Ohio?
The first year survival rate for small businesses in Ohio is 78.5%.
Survival rate within 5 years is 53.1%.
According to Finfare, the most important factors determining which states were ranked from best to worst were corporate tax rates and business survival rates. Ohio State ranks at or near the top in both metrics.
10 best states to start a small business
- Ohio
- nevada
- Indiana
- arkansas
- north carolina
- California
- oklahoma
- kentucky
- pennsylvania
- mississippi
10 worst states to start a small business
- District of Columbia
- alaska
- new jersey
- rhode island
- connecticut
- minnesota
- maine
- vermont state
- tennessee
- Oregon
