If you have been thinking about starting a small business, you're on the right track if you live in Montana.

According to a new study released by The Blueprint, Montana is the #1 state in the country for starting a new small business.

If you're ready to quit your day job and start working for yourself, here are a few reasons why Montana is a great choice for starting a small business.

In the study, The Blueprint used six essential factors that small business owners must consider when starting a new business. Each factor is scored on a scale from 1-10.

  1. Tax climate
  2. Consumer spending in the state
  3. Rate of new entrepreneurs
  4. Business survival rate over five years
  5. Labor costs
  6. Climate

Each state was rated on a scale from 1-10 based on The Blueprint's scoring system. The scoring factors are tax climate, consumer spending, rate of new entrepreneurs, business survival rate over 5 years, labor costs, and climate change impact.

Montana received an overall total score of 7.39. Check out the breakdown below.

  • Total Score: 7.39
  • Tax Climate: 6.23
  • Consumer Spending in State: 4.93
  • Rate of New Entrepreneurs: 9.21
  • Business Survival Rate: 8.55
  • Labor Costs: 7.56
  • Climate: 9.37

Since Montana scored high in so many areas, it was listed as the best state to open a business in 2021.

According to the study, Montana has a five-year business survival rate of 53.4% which is better than any other state.

Montana’s corporate tax climate is not as optimal as it could be, with a corporate tax rate of 6.75%, while the individual income tax rate tops out at 6.9%. Montana does not currently have a state sales tax. Consumer spending is also on the rise, going from $41.4 million in 2017 to $45.3 million in 2019, a 9.2% increase, with the state on an upward trend.

Here are the Top 10 states to start a new business in 2021.

The 10 best states to start a small business in 2021:

  1. Montana
  2. South Dakota
  3. Florida
  4. Texas
  5. Idaho
  6. Utah
  7. Arizona
  8. Oregon
  9. Wyoming
  10. Nevada

For more information on the study, click here.

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