Choosing a State in Which to Run Your Business


When you decide to start up a business there are a lot of decisions you need to make. Who are you going to hire? What’s your target demographic? How are you going to market your product or services? It’s a lot to think about and it’s important that you take your time with each decision.

However, in many cases, before you can even get to these questions you have to first ask yourself “Where am I going to run this business?” For some of you, the answer is simply wherever you currently live. However, you may find that running your business in a different location is advantageous. To that end, if you want to move your business to another state, here are the things you’ll want to consider.

The Costs

First and foremost, you need to think about the costs associated with having your business in that location. Running a business is all about bringing in more money than you spend, and the location you choose will have a large impact on your costs.

For instance, some states have lower taxes than others. You’ll want to take some time to research the tax laws for all of the states you’re interested in and determine how they would impact your business. You can find more information about states’ tax laws here.

Besides that, you should think about the costs associated with moving to that state. If you currently live in New York, it’s probably going to cost you a lot more to move your business to California than it would New Jersey. These may only be one-time costs, but it’s still an important factor to think about, especially for new businesses.

Finally, you’ll want to think about the space your business will occupy. What does it cost to rent a space in that state? Is the type of space you’re after even available in that state? For example, let’s say you want to move your business to Oregon. According to Land Broker MLS, there is a lot of land for sale in Oregon – but it’s mostly ranches, farm land, and open acres. Is this the type of land you need?

All businesses are different and have different requirements for the type of space they need. Think about what yours will need, and then do some research to see if this type of space is even available in a particular state. If it is, you’ll then want to find out the costs associated with it and compare those to other states.

The Ease of Set Up

Once you’ve gotten a better idea on the costs associated with a state, the next thing you’ll want to look at is how easy it is to set up a business there. Some states have a lot more “red tape” that you need to go through in order to start your business. If you don’t learn about the processes for that state beforehand, you could find yourself dealing with a lot of delays (and as a result, a lot more stress).

Once you’ve narrowed down the states you’re considering, take some time to learn about how to go about setting up a business there. Makes some calls to Chambers of Commerce, talk to local politicians if you can, or find some online guides. You may find that two states you were considering have very different processes for setting up a business, and this will help you to make your final decision.


Next, what’s the competition like there? Are there are a lot of similar businesses there already? You don’t want to move to an area where you’re going up against other businesses that had a large head start. A quick internet search of your industry plus the state/city you want to locate to will give you a rough idea as to the level of competition.

What is it Like to Live There?

Finally, you’re not going to spend your entire time in this state working on your business. Eventually you’ll go home or want to do something fun. That’s why it’s important to learn about what it’s like to live in a state. You don’t want to move to a state that is ideal for your business, but hard on you or your family to live there.

The State You Choose Plays a Big Role

As you can see, there’s a lot to consider when choosing a state for your business. Between the costs, the local competition, local governments and having to live there, choosing a state should not be taken lightly. Hopefully this guide was able to give you something to think about, and you’ll be able to choose the perfect state for both you and your business.


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