scorecardHere are the 10 best — and 10 worst — US states to start a new business, according to a new report
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Here are the 10 best and 10 worst — US states to start a new business, according to a new report

Lakshmi Varanasi   

Here are the 10 best — and 10 worst — US states to start a new business, according to a new report
The financial site WalletHub recently released a study on the best and worst states to launch a business.Jamie Grill/Getty Images
  • A new report from financial website WalletHub looked at which states were the best for starting a business.
  • The study analyzed states according to metrics like access to resources and potential business costs.

The 10 best

The 10 best
The financial website WalletHub recently ranked the 50 states according to which ones were the best and worst for starting a business.      runner of art/Getty Images

Where you start a business can make a big impact on how well it fares.

A new WalletHub study evaluated states across three metrics: "Business Environment" looked at 14 factors ranging from five-year business survival rate to the average length of the work week. "Access to Resources" considered 6 factors, like the amount of venture capital investment per capita and the college-educated share of the population. While "Business Costs" examined seven types of costs including office-space affordability, labor costs, and state and local tax rates.

For those who are entertaining thoughts of launching a new business, Insider did the homework for you. Here are 10 best states to launch a business, according to WalletHub.

1. Utah

1. Utah
Utah has a wealth of natural resources and a corporate tax rate of 4.85%, according to Tax Foundation.      f11photo/Getty Images

Utah earned the highest overall score for starting a new business according to WalletHub.

Business Environment: 7 out of 50

Access to Resources: 1 out of 50

Business Costs: 32 out of 50

2. Florida

2. Florida
Florida has one of the fastest-growing GDPs in the country, according to data from the Bureau of Economic Analysis compiled by Forbes.      Alexander Spatari/Getty Images

Florida earned the second-highest overall score for starting a new business, according to WalletHub.

Business Environment: 1 out of 50

Access to Resources: 14 out of 50

Business Costs: 24 out of 50

3. Texas

3. Texas
Texas is considered one of the best states to launch a business for its friendly regulatory environment.      Anton Petrus/Getty Images

Texas earned the third highest overall score for starting a new business.

Business Environment: 3 out of 50

Access to Resources: 12 out of 50

Business Costs: 31 out of 50

4. Colorado

4. Colorado
Colorado ranks high for its overall business environment and has a corporate tax rate of 4.55%, according to Tax Foundation.      Steve Whiston - Fallen Log Photography/Getty Images

Colorado earned the fourth highest overall score for starting a new business.

Business Environment: 4 out of 50

Access to Resources: 7 out of 50

Business Costs: 35 out of 50

5. Idaho

5. Idaho
Idaho has relatively low corporate taxes and limited business regulation.      Anna Gorin/Getty Images

Idaho earned the fifth highest overall score for starting a new business.

Business Environment: 9 out of 50

Access to Resources: 21 out of 50

Business Costs: 10 out of 50

6. Georgia

6. Georgia
Georgia has a relatively low corporate tax rate of 5.75%, according to Tax Foundation.      f11photo/Getty Images

Georgia earned the sixth highest overall score for starting a new business.

Business Environment: 5 out of 50

Access to Resources: 26 out of 50

Business Costs: 19 out of 50

7. Arizona

7. Arizona
Arizona ranks high on the list for a relatively low cost of living.      Getty Images

Arizona earned the seventh highest overall score for starting a new business.

Business Environment: 6 out of 50

Access to Resources: 22 out of 50

Business Costs: 30 out of 50

8. Nevada

8. Nevada
Nevada is often considered a business-friendly state for its low-regulation environment. While the state doesn't have a corporate income tax, but does levy a gross receipts tax.      Getty Images

Nevada earned the eight highest overall score for starting a new business.

Business Environment: 12 out of 50

Access to Resources: 11 out of 50

Business Costs: 26 out of 50

9. Oklahoma

9. Oklahoma
Oklahoma ranked first out of 50 for business costs according to WalletHub's study.      p_h / 500px/Getty Images

Oklahoma earned the ninth highest overall score for starting a new business.

Business Environment: 28 out of 50

Access to Resources: 19 out of 50

Business Costs: 1 out of 50

10. California

10. California
While California earned top stops for its overall business environment and access to resources, the state has one of the highest business costs in the country.      Barry Winiker/ Getty Images

California earned the tenth highest overall score for starting a new business.

Business Environment: 2 out of 50

Access to Resources: 2 out of 50

Business Costs: 49 out of 50

The 10 worst

The 10 worst
Chris Maertz / EyeEm/Getty Images

…and here are the 10 worst states to set up shop, according to WalletHub.

1. Alaska

1. Alaska
Business costs are high in Alaska. Though the state has no personal income tax and relatively low property tax, it has a high corporate tax rate of 9.4%, according to Tax Foundation.      Patrick J. Endres/Getty Images

Alaska had the lowest overall score for starting a new business.

Business Environment: 30 out of 50

Access to Resources: 33 out of 50

Business Costs: 45 out of 50

2. Connecticut

2. Connecticut
Between 1955 and 1980 more than 50 corporations left Connecticut including IBM, Gulf Oil, Texaco, and Xerox according to Slate.      Getty Images

Connecticut had the second lowest overall score for starting a new business.

Business Environment: 49 out of 50

Access to Resources: 8 out of 50

Business Costs: 46 out of 50

3. West Virginia

3. West Virginia
While West Virginia scored at the bottom for overall business environment and access to resources, business costs are among the lowest in the country.      Posnov/Getty Images

West Virginia had the third lowest overall score for starting a new business.

Business Environment: 50 out of 50

Access to Resources: 50 out of 50

Business Costs: 3 out of 50

4. New Jersey

4. New Jersey
New Jersey scored the lowest overall in business costs, even compared to its neighbor New York, which came in at 47th, according to WalletHub's study.      TC Franco/Getty Images

New Jersey had the fourth lowest overall score for starting a new business.

Business Environment: 22 out of 50

Access to Resources: 13 out of 50

Business Costs: 50 out of 50

5. Rhode Island

5. Rhode Island
While Rhode Island ranked relatively high in terms of its access to resources the state has a tough business environment according to WalletHub.      George Wirt/Shutterstock

Rhode Island had the fifth lowest overall score for starting a new business.

Business Environment: 47 out of 50

Access to Resources: 16 out of 50

Business Costs: 36 out of 50

6. Wyoming

6. Wyoming
Wyoming has the most startups per 100,000 residents, 214.67, which is three times more than in West Virginia, the state with the fewest at 72.2, according to WalletHub.      Jeff R Clow/Getty Images

Wyoming had the sixth lowest overall score for starting a new business.

Business Environment: 41 out of 50

Access to Resources: 48 out of 50

Business Costs: 28 out of 50

7. Pennsylvania

7. Pennsylvania
The corporate net income tax in Pennsylvania is among the highest rates in the country at 8.99%, according to the Pennsylvania Department of Revenue.      Getty Images

Pennsylvania had the seventh lowest overall score for starting a new business.

Business Environment: 42 out of 50

Access to Resources: 20 out of 50

Business Costs: 34 out of 50

8. North Dakota

8. North Dakota
North Dakota has a relatively low corporate income tax rate between 1.41% to 4.31% according to Tax Foundation.      Denis Tangney Jr./Getty

North Dakota had the eighth lowest overall score for starting a new business.

Business Environment: 37 out of 50

Access to Resources: 45 out of 50

Business Costs: 27 out of 50

9. Virginia

9. Virginia
Virginia ranks low on WalletHub's list particularly for business costs.      Dee/Getty Images

Virginia had the ninth lowest overall score for starting a new business.

Business Environment: 26 out of 50

Access to Resources: 29 out of 50

Business Costs: 38 out of 50

10. Maryland

10. Maryland
While Maryland ranks high in terms of access to resources the high business costs ultimately brought down its ranking on WalletHub's list.      David Shvartsman/Getty Images

Maryland had the tenth lowest overall score for starting a new business.

Business Environment: 20 out of 50

Access to Resources: 10 out of 50

Business Costs: 48 out of 50

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