How well do you think you know the US? Traveling coast to coast through the many states is one thing, but knowing what different states can offer you in terms of your US market expansion is something else.

Over the years, we’ve worked with many businesses — from software companies to animation studios to consultants to you name it — each with unique needs and requirements. These interactions have made it plain to see that there isn’t an easy, one-size-fits-all solution out there. That means finding the state that best fits the nature of your business is crucial to any US market expansion.

That said, there are states that score higher in terms of good places to start your business. Forbes Advisor analyzed 18 key metrics across five categories to determine which states are the best and worst to start a business in.

One of the most important parameters that takes a third from their overall evaluation is business cost. This metric takes into consideration income tax, corporate tax, property tax rates and LLC formation fees. Check out our recommendation on how to start a company in the US here.

There are nine states where you don’t have to pay income tax — Florida, Texas and Washington state are three of them. States like New Jersey and Pennsylvania have high corporate taxes, making it an expensive place to start a business, while Colorado has one of the lowest business formation fees of just $50 to register an LLC.

After taking into account overall financial accessibility, economic and workforce factors, the best US states to start a business in 2023 are Indiana, Colorado and North Dakota, according to Forbes Advisory.

Indiana ranked highly because it not only offers a low flat tax rate but also $13.1 million in total funding for small businesses over the last year as reported by the Small Business Association (SBA), where small businesses are defined as firms with fewer than 500 employees.

In Indiana, 99.4% of businesses are considered small and 43.8% of employees are small business employees.

Even though some states might offer lower income tax or no sales tax at all, they still might not be the best fit for your US market expansion. Why?

It comes down to the specification of your business. Are you looking for investors? Where are your crucial business partners? Where are your main customers? We always keep in mind your unique business needs and location accessibility when looking for the most suitable state to launch your business in the US.

If you are planning an expansion into the US market, schedule a free consultation today. We will help you launch your business in the US and navigate the opportunities and disadvantages each state offers before presenting you with the best option.