There are a lot of rankings reported for best places to live, work and play. Now a provider of business formation services has ranked the top 10 states in which to form a business, with Utah ranked eighth.
Northwest Registered Agent says the Beehive State is one of the best places for low startup costs and business-friendly tax regulations. It says that with relatively low corporate and personal income tax rates of 4.55 percent, down from 4.95 percent in 2018, Utah remains competitive with other states by offering manageable tax exposure. But affordability here goes beyond taxes.
Utah also earned an “A” grade in Govtech’s 2024 Digital States Survey, which recognized the state’s commitment to integrating digital infrastructure and streamlining its services. This modernization helps reduce compliance friction and, by extension, the amount of cash invested in administrative overhead and downtime for regular filings.
The top 10 states, in order, are Wyoming, South Dakota, Alaska, Florida, Montana, Nevada, Texas, Utah, North Carolina and Indiana. The 2025 standouts are:
Wyoming – Ultra-low startup fees, no corporate income tax, and one of the nation’s most competitive tax structures earned Wyoming the No. 1 spot.
South Dakota – Entrepreneurs benefit from zero personal or corporate income tax and one of the lowest statewide sales taxes in the U.S.
Alaska – With no personal income tax, no statewide sales tax, and generous regional incentives, Alaska is a surprisingly founder-friendly frontier.
Florida – No personal income tax, moderate corporate tax rates, and world-class infrastructure — from airports to seaports — making Florida a launchpad for global business.
“Choosing the right state to launch can significantly impact a new business’ budget,” said Aigner Wilson, senior content specialist for Northwest Registered Agent. “Our 2025 ranking helps founders spot hidden savings while tapping into states that are actively supporting entrepreneurs.”