Top 10 states to start a business | Source: Forbes Advisor

Jan. 4. A new study from Forbes Advisor found that North Carolina ranks No. 5 for being the best state to start a business.

Over the last year, North Carolina has experienced a net 38 percent increase in the number of small businesses, with a business survival rate of 77 percent.

The other Top 5 states, in order, are: North Dakota, Indiana, Arkansas and South Dakota, with North Carolina at No. 5.

Standouts

—North Dakota ranks as the best state to start a business. With a combination of low taxes, a reasonable cost of living, and a high percentage of the working-age population, Indiana provides ideal conditions for new businesses to succeed.

—Vermont ranks as the worst state to start a business. A high cost of living, high tax rates, and a relatively low business survival rate (at 75 percent) make Vermont less-than-ideal.

North Carolina

North Carolina offers a blend of supportive business elements, the report says. The state’s formation fee is reasonably set at $125, striking a balance between accessibility and quality service. A significant advantage for entrepreneurs is the business survival rate of 77 percent, suggesting a nurturing and stable environment for startups.

According to Forbes Advisor, North Carolina is poised to aid small businesses, offering an average funding of $22,019 via grants and incentives. This level of support shows the state’s investment in fostering entrepreneurial ventures. The cost of living index here is 0.96, aligning closely with the national average and ensuring affordability for business owners and workers alike. With 65 percent of its population in the working-age category, North Carolina provides a large labor pool. The state’s scaled score of 84 out of 100 reflects these combined advantages, making it a promising location for new businesses.

Click here for the full report.