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Texas lands in top 10 most expensive states for running a new business
Everything is bigger in Texas — or at least somewhat bigger — and that appears to include the cost of running a new business.
A new ranking from business consulting firm Venture Smarterputs Texas at No. 9 among the states with the highest expenses for starting and operating a business.
New York is No. 1 on the list, followed by Washington and Massachusetts.
The cheapest state? Mississippi. It was preceded in the ranking by Kentucky and North Dakota.
To come up with its list, Venture Smarter looked at eight metrics, including corporate tax rate, average LLC filing fees, average real estate costs, and minimum wage.
Texas scored 59.74 out of 100 for startup expenses, with a higher score being worse.
The Lone Star State tied with Tennessee for the highest initial LLC filing fees ($300). But unlike many other states, Texas doesn’t require business owners to pay LLC filing fees each year to keep a business incorporated.
Texas fared well on several counts, though, such as no corporate tax, a low state-mandated minimum wage ($7.25 an hour), and relatively low real estate costs.
“This research aims to provide valuable insights into the business climate across various states, offering new entrepreneurs the information they need to make well-informed decisions on their entrepreneurial journey,” Venture Smarter says in a statement. “By understanding the unique characteristics and challenges of each state, aspiring business owners can navigate the complexities of different markets and optimize their chances of success.”
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This report originally appeared on our sister site, InnovationMap.