The 10 best US states to start or expand your business

The United States remains the world’s largest economy and one of the most attractive destinations for foreign direct investment. For UK founders and entrepreneurs, its open business climate offers real opportunities. But not all US states are created equal. From tax laws to talent access, your choice of location can shape your success.

This guide highlights the most business-friendly states in 2025—and how tools like Wise Business help you expand to the US with ease, with simple international payments and easy multi-currency management.

Go global with Wise Business✈️

The best states in the USA for business: An overview
Before we go into details, check out this table for a quick overview of the top 10 states and why they stand out.

State 🇺🇸	Why it stands out✅
North Carolina	Biotech investment, lowest corporate tax
Texas	More corporate headquarters than any other state, no state income tax
Georgia	Easy setup, global access via Atlanta airport
Florida	Large market, increased small business funding
Tennessee	Low costs, excellent logistics and healthcare
Washington	Tech focus, no personal income tax
Virginia	Leading data centre hub, workforce training
Utah	High new business creation, rural incentives
Wyoming	Most affordable for businesses
Delaware	Trusted, low-cost startup incorporation and the Delaware flip

Key takeaways:

• The most business-friendly states are those with low corporate taxes, cheap real estate, and a robust workforce.
• North Carolina, Texas, and Delaware stand out with the lowest tax rates and investor-friendly regulations.
• Florida, Georgia and Utah provide founders with access to growing markets, talent, and capital.
• Choosing one of the best states can save you money, make you hire smartly, and help you grow quicker.

What makes a state business-friendly?

Some US states make running a business simpler and more rewarding than others. When you’re looking for where to start or grow, certain qualities signal that a state is on your side.

Business taxes and regulation

Predictable or low tax rates can be a big attraction. New businesses are more likely to be formed in states with lower corporate taxes, no personal income taxes, or special incentives for new businesses. A business can operate without expensive delays or legal confusion if the state has clear regulations. In some states, simplified incorporation and reporting procedures translate to less time filling out forms and more time expanding.

Workforce and talent pool

The availability of skilled workers is a necessity. The states with the best business environments have high educational standards, good university systems and workforce development programmes in place. This makes it easier to hire at all levels, including entry and leadership.

Economic stability and growth prospects

A healthy local economy provides an opportunity for businesses to succeed. States that have a high GDP growth rate, stable employment levels, and low unemployment rates tend to offer a stable base to new businesses. Forward-looking states also promote growth industries like technology, healthcare, and advanced manufacturing, which attract innovative companies and investors.

Access to capital and funding

Entrepreneurs need funding at all stages. States that have high access to bank loans, venture capital, and state-sponsored grants or incentive programmes enable more founders to transform ideas into reality. The impact of financial ecosystems linking startups and investors is significant in the long-term success.

💡 Read more on: how to find investors

Infrastructure and logistics

Modern businesses cannot do without efficient transport and digital infrastructure. The best states invest in road, rail, and airport networks, as well as fast and reliable broadband. This helps businesses access customers, suppliers, and talent, both locally and globally.

Quality of life and cost of living

Business decisions aren't made in a vacuum. Employers and employees are attracted to states that have a reasonable cost of living, including office space and housing. Quality of life, including healthcare, schools, and amenities, can be used to keep the best talent in the long term.

New and small business support

The best starts are those that support entrepreneurs. Look out for local support networks like business incubators, mentorship networks and government-sponsored programmes designed to support new businesses. A good startup ecosystem can present opportunities to collaborate, learn, and grow your business.

Top 10 best states for business

Choosing the right state will position your business for long-term success. All the best states in 2025 have something to offer, whether it is tax benefits or good support systems. Here are the 10 best US states to start or expand your business in 2025 in no particular order.

1. North Carolina

North Carolina continues to appear on the list of the best places to do business, and it’s easy to see why. It has the lowest corporate tax rate in the country at 2.25%, and there are plans to reduce it to zero by 2030.¹ This makes it an attractive option for profit saving. There’s also a constant stream of graduates from Duke and North Carolina State, so you can access a highly skilled workforce.

Recent investments from Biogen and Amazon are supporting North Carolina’s growth. Biogen is investing 2 billion USD in expanding operations in Research Triangle Park.² Amazon is also constructing a 10 billion USD AI and cloud campus in Richmond County,³ both of which will bring hundreds of new jobs and improve local infrastructure.

• LLC filing fee: 125 USD⁴
• Annual report charge: 200 USD

North Carolina makes it straightforward to start or expand a business, regardless of stage. The figures, the talent, and the new investments all lead to the same conclusion: it is a state that is open to businesses.

2. Texas

Texas consistently ranks near the top for business-friendly states, and it’s not just about low taxes. The state has a huge pool of talent, which is replenished by the leading universities. Also, big names such as Tesla and Chevron have recently relocated their corporate headquarters to Texas.⁵

• No corporate or individual income tax⁶
• LLC formation fee: 300 USD⁴
• Gross receipts tax: ranges from 0.375% to 0.75% depending on the business⁷

With tax savings and new business infrastructure, Texas provides the type of environment in which businesses can start, hire, and grow with confidence.

3. Delaware

Delaware is a good choice for businesses, especially startups with big ambitions. Its legal system is made for business, with fast dispute resolution and strong protections. The state has no sales tax, and the costs to get started are among the lowest in the country.

• Franchise tax for LLCs: 300 USD per year²³
• Certificate of formation: 90 USD⁴
• State sales tax: none
• More than half of all publicly traded US companies are incorporated in Delaware²⁴

Then, there’s the “Delaware Flip”, where a startup establishes a Delaware parent company to appeal to US investors.²⁵ Business owners often use the “Delaware flip” to access US venture capital and set up for long-term growth.

4. Georgia

Georgia has Atlanta at its centre, which means unmatched connectivity for businesses. The cost of living is reasonable, and registering a business is straightforward. The state invests in training and development to keep its workforce strong.

• Corporate income tax: 5.19%⁸
• LLC articles of organisation: 100 USD⁴
• Annual registration: 50 USD
• Atlanta’s airport is the world’s busiest and serves more than 100 million passengers per year⁹

The tech industry in Georgia is expanding rapidly. The state had less than 2,000 IT companies just five years ago. Today, the number is over 24,000 due to new tax incentives and a constant stream of foreign companies establishing operations.¹⁰

5. Florida

Florida’s appeal is clear. There’s a huge customer base, high employment growth, and no state income tax.¹¹ The state assists new enterprises with tax credits and funding incentives. The international opportunities are also opened by the fact that Miami is a gateway to Latin America markets.

• Corporate income tax: 5.5%¹⁰
• LLC registration fee:125 USD ⁴
• Annual report: 138.75 USD
• No individual income tax

Additionally, the State Small Business Credit Initiative (SSBCI 2.0) has recently released an extra 167 million USD to aid small business loans and investment in Florida.¹² For this reason, many entrepreneurs find it easy to choose the state.

💡 See: how to start a business in the US

6. Tennessee

Tennessee has developed a low-cost, business-friendly environment with great logistics. Nashville attracts healthcare and creative companies, and Memphis dominates transport. Despite a higher LLC filing fee, Tennessee’s overall business costs remain low.

• Corporate income tax: 6.5% ¹³
• LLC filing fee: 300 USD⁴
• No state income tax on wages
• Annual report: 300 USD

Businesses enjoy access to national distribution networks and state-supported training programmes.

7. Washington

Washington is appealing to both established tech giants and startups. The state has no personal income tax but charges a business and occupation tax with rates depending on your business¹⁴. This makes it attractive to innovative businesses.

• LLC formation fee: 200 USD⁴
• Corporate income tax: none

Washington’s investment in broadband and tech training is helping startups and established businesses grow.

8. Virginia

Virginia has advantages in terms of its educated labour force and transportation systems. Although the state has an individual income tax ranging from 2.00% to 5.75%¹⁵, there are incentives to new and expanding businesses. Northern Virginia is still the largest data centre market in the world, and now the demand has surpassed 4900 megawatts.¹⁶

• Corporate tax rate: 6%
• LLC filing fee: 100 USD⁴
• Annual registration fee: 50 USD
• Virginia ranks top for customised workforce training¹⁷

Business owners benefit from state grants for job creation and expansion. New policies support Virginia’s growing tech sector and modernise its energy infrastructure.

9. Utah

Utah is a rising star for new businesses. Salt Lake City’s reputation as a tech centre is well earned, and the cost of doing business is kept in check by low taxes and fees. The state’s supportive ecosystem helps founders find their footing fast.

• Corporate tax: 4.55%¹⁸
• LLC certificate of organisation: 54 USD⁴
• Annual report fee: 18 USD
• Utah consistently ranks in the top five for business creation rate

Utah supports the Rural Employment Development Incentive (REDI), which provides up to 4,000 - 6,000 USD per new rural job created in eligible communities.¹⁹ Additionally, young talent and a culture of collaboration are both strong draws.

10. Wyoming

Wyoming is an attractive choice for businesses interested in simplicity and early savings. There’s no state corporate or personal income tax,²⁰ and startup costs are among the lowest in the country. The state maintains light regulation, and it’s easy to start a business as a foreigner.

Taxes are not the only way Wyoming supports business. Even smaller cities and rural businesses are not left out of support. The Wyoming Business Council recently approved another grant to expand WyoTech in Laramie.²¹

The state has also introduced a Childcare Provider Start-Up Grant, which provides up to 10,000 USD to new childcare businesses.²² This is an incentive to fill workforce gaps and help working parents. New collaborations between the University of Wyoming and local business organisations are linking students to practical internships, expanding the local talent pool for employers.

• LLC formation fee: 100 USD⁴
• Annual report fee: 60 USD
• Straightforward compliance and reporting

Wyoming is the top pick for business owners seeking low startup costs and minimal bureaucracy.

What states are more difficult to expand or start a business in?

While some offer benefits, there are states in the US that make it difficult for businesses. High cost, strict regulations and complicated taxation systems are some factors that discourage business owners.

California, for instance, is a difficult state due to its high corporate income tax, high cost of living,²⁶ and numerous regulatory demands. City rents in places such as San Francisco and Los Angeles are regularly higher than national averages, and state taxes may eat into profits.

New York has similar challenges. It has one of the highest corporate tax rates in the country.²⁷ It also takes a long time to establish and operate a business due to administrative challenges. Moreover, there's an additional cost of local taxes in New York City.

New Jersey, Massachusetts and Connecticut also rank low for business due to a combination of high operating costs, complicated licenses and strict labour laws.²⁸ This translates to increased risk and low profit margins for business owners.

Top tips to expand to the US

Expanding to the US means navigating new rules and expectations. Here are some tips to keep in mind before you make your move.

• Choose your company structure: Decide whether an LLC, corporation, or other structure would be a good fit for your business. An LLC is a good option because it is flexible and provides liability protection to many international founders.
• Get your finances ready: Get the money you require before you start. Establish transparent accounting systems to enable you to monitor the cash flow and comply with local requirements early enough.
• Open an international business account: You'll need a business account which is able to process multiple currencies. Open a Wise business account to hold and manage 40+ currencies. This simplifies paying suppliers and receiving international payments.
• Know your tax responsibilities: Review the state and federal tax laws. States have different requirements, so take time to know what is required of you.

💡 You may also like our guides to doing business in the US)🇺🇸

Expand to the US with Wise Business, the business account for startups and entrepreneurs

While having a local corporate bank account may be a key requirement in many countries, you can also use Wise Business to help grow your business in the US.

Open a Wise Business account and you can manage your company’s finances in 40+ currencies all in one place, including USD, EUR, GBP, CAD and all other major currencies.

You’ll be able to pay suppliers and staff in their own currency, as well as receiving payments in multiple currencies. Wise payments are fast and secure (even for large amounts). Best of all, you’ll only pay low, transparent fees and always get the mid-market exchange rate.

With Wise Business, you’ll also benefit from the following features:

• Issue business debit and expense cards for you and your team
• Cashback on eligible card spending
• Generate invoices and payment links to receive money easily from customers
• Access accounting integrations, batch payments and a powerful API
• Wise Interest - which lets you earn returns on money held in GBP, USD and EUR.

Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

It’s quick and easy to open a Wise Business account, with a fully digital application, verification and on-boarding process. Check out the requirements here.

Wise works almost everywhere, and you can open an account in the US, Canada, Europe and of course, the UK.

Register with Wise Business✈️

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Sources used:

1. State Corporate Income Tax Rates and Brackets, 2025 – Tax Foundation
2. Biogen Investment in North Carolina – Biogen
3. Amazon Investment in North Carolina – Amazon
4. LLC Cost by State – LLC University
5. Corporate Relocations Reshape Texas – CRE Daily
6. Taxes in Texas – Tax Foundation
7. Franchise Tax – Comptroller Texas
8. Corporate Income and Net Worth Tax (Georgia) – Georgia Department of Revenue
9. Hartsfield-Jackson ATL Airport – Fox News
10. Georgia Climbs Tech Ladder – International Finance
11. Florida Tax and Interest Rate – Tax Foundation
12. State Small Business Credit Initiative 2.0 - Florida Commerce
13. Tennessee Tax Rate – Tax Foundation
14. Washington Income Tax – Washington Department of Revenue
15. Taxes in Virginia – Tax Foundation
16. North Virginia Data Centres – WTop News
17. Virginia:Top State for Customized Workforce Training – Governor of Virginia
18. Taxes in Utah – Tax Foundation
19. Utah Center for Rural Development – Utah Startup
20. Taxes in Wyoming – Tax foundation
21. Project for WyoTech Expansion – Wyoming Business Council
22. Wyoming Childcare Provider – Wyoming Business Council
23. LLC/LP/GP Franchise Tax Instructions – Delaware Division of Corporations
24. Delaware Business and Economy – Delaware Department of State
25. How To Do a Delaware Flip – Caribou
26. Californians: Here’s Why Your Housing Costs Are So High – Cal Matters
27. Business Owners Are Threatening to Leave New York City – Fortune
28. 2025 State Tax Competitiveness Index – Tax Foundation

Sources last checked: 30-Jul-2025