Sunday, March 3, 2024

Law firm names 10 best states for business owners

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Wyoming and Nevada top the list of the 10 best states for business owners in 2024, according to a recent report from the Schmidt & Clark law firm.

“Business is the driving force of America. In fact, small businesses generate 1.5 million jobs per year in the United States, according to research,” a representative from the law firm said in an emailed press release.

The study determined the best states to own a business based on the number of business applications and the percentage of change year over year, the annual percentage change of real gross domestic product, and regional unfriendly customer ratings and business failure rates within one year, with each category being weighed equally. The results then were compared against 100,000 people in each state and given a final index score out of 100. 

Wyoming scored the highest among the states, with the study assigning the state a final index score of 76.19. The state had 907 business applications between November 2022 and November 2023. That percentage is 517% higher than the national average.

Wyoming also scored 39% higher year over year. Additionally, the state saw a 6% change in GDP in the third quarter of 2023, which was 26% higher than the national average.  

Nevada ranked second best, with a final index score of 61.48. The Silver State saw an annual change of GDP of 7% in the third quarter of 2023, which was 47% higher than the national average. 

“Also, only 19% of the state’s businesses failed within one year, meaning businesses are 16.6% more likely to succeed in Nevada,” the report writers noted.

Texas ranked third, with a final index score of 61.18. The number of business applications in the state increased 24% between November 2022 and November 2023. The state’s GDP rose 8% the third quarter of 2023, which was 68% higher than the national average.

California is the fourth best state for business owners this year, according to the report, with a final index score of 58.65.

“The state has a regional unfriendly customer rating of 92 out of 100, compared to the national average of 93.29 out of 100, with the lowest number being the friendliest. California also has the lowest rate of business failures within one year at 13%, 41% lower than the national average,” the attorneys said.

Pennsylvania completes the top five states for business owners this year with a final index score of 58.49. The Keystone State saw a 33% increase in annual business applications November 2022 to November 2023. That amount is 213% higher than the national average.

Rounding out the top 10 were Oregon, Oklahoma, Kansas, Kentucky and, in last place, South Dakota.

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