Montana Ranks #1 For Starting a Small Business in 2021
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.
- Tax climate
- Consumer spending in the state
- Rate of new entrepreneurs
- Business survival rate over five years
- Labor costs
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:
- South Dakota
For more information on the study, click here.