Top 10 Most Expensive States To Start a Business

Are you thinking of starting your own business? If you have what you believe to be a million dollar idea, you’re probably getting excited at the prospect of running your own company and begin earning money . But, there is the issue of startup costs, which vary from state to state.

The research team at Zibtek looked at nine key factors, including:

• Income tax
• Corporate tax
• Property tax
• Average monthly electric bill
• Sales tax
• LLC business filing fees
• Gross domestic product (GDP) per capita
• Personal consumption expenditures (PCE) per capita
• Internet crime losses

Based on those factors, here are the 10 most expensive states to start a business .

Trending Now: 7 Most Profitable Small Business Ideas for 2024

Find Out: 9 Easy Ways To Grow Your Wealth in 2024

California

The Golden State has many factors that contribute to it being at the top of the list. One being its high income tax rate of 13.3%. Another aspect that made California an expensive state to start a business in is its internet crime losses, which were the second highest on the list at $104 million.

Be Aware: 4 Ways the Middle Class Can Make an Extra $500 a Week From Home

Check Out: 15 Things You Can Donate for Money

Money mistakes the super wealthy never make - that you might be doing now.

New Jersey

New Jersey is second on the list, proving it’s hard to start a business on either coast. New Jersey was third highest when it came to internet crime losses.

For You: Get Paid To Watch Videos: 11 Easy Ways

Massachusetts

Massachusetts ranks high because it has the highest LLC business filing fee at $520. It also is in the top five highest states when it comes to monthly electricity bills, so it will be costly to literally keep the lights on. Massachusetts also has the second highest GDP per capita.

New York

New York has the highest GDP per capita in the country. The state has the third highest income tax rate at 10.9%. This makes it a pricey state to earn a living as a business owner.

Illinois

The corporate tax rate in Illinois is the second highest nationwide at 9.5%. The property tax rate is also the second highest in the country, so you’ll be paying a good chunk of change on taxes alone for your Illinois business.

Try This: I Rent Out a Home on Airbnb: Here’s How Much Profit I Actually Bring In

Vermont

Vermont has the highest property tax rate, so if you own your business space, you’re going to pay a lot in taxes. This also might mean paying more for a business space lease, as property owners are trying to make as much as they can to cover that tax rate.

Connecticut

Though Connecticut doesn’t rank remarkably high on any specific factor, it is worth noting that it has the third highest personal consumption expenditures (PCE) per capita, so it’s almost expected you’re going to pay more than the average just to live in the state, let alone operate a business there. The average monthly electric bill is also the sixth highest in the country, which means you can expect some costly utilities.

Minnesota

When starting a business in Minnesota, you’ll be slapped with the highest corporate tax rate in the country at 9.8%. The income tax rate is the sixth highest at 9.85%. These combined make tax season pricey for business owners in the land of 10,000 lakes.

Read More: 22 Side Gigs That Can Make You Richer Than a Full-Time Job

Hawaii

Hawaii had the highest electricity bills on the list and the second highest income tax rate at 11%. You can expect high internet crime losses as well, as Hawaii is fourth on that list overall.

Pennsylvania

Pennsylvania has the ninth highest corporate tax rate in the country and the sixth highest property tax rate. However, there is some good news, as the income tax rate is one of the lowest in the country.

This article originally appeared on GOBankingRates.com : Top 10 Most Expensive States To Start a Business