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10 Best States to Own a Small Business In

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Starting a Business: Some Things to Think About

Are you thinking about starting your own business? Having your own business can be an incredibly fulfilling experience, including professionally, financially and personally. You get to be your own boss, produce what you want, and see that things are done your way.

However, starting a business can also be a risky move economically. Hundreds of new businesses fail every year, and even those that don’t can take years before they turn a profit. However, much of this depends on the current economic climate and the steps needed to start a business, which vary from state to state. Read on to learn more about these differences and how they can affect your new business.

Real GDP by State

Generally, a positive GDP indicates a more welcoming environment for small businesses. The states with the top real GDP are Texas, Utah and Georgia, while the lowest include Hawaii, New Jersey and Alabama.

Income Tax Differences

You should also consider the amount of income tax you will be expected to pay. For example, in Texas, you won’t have to pay anything, but in Hawaii, you would have to pay a whopping 11%. California, Rhode Island and New Jersey also have high income taxes, while Utah and New Hampshire have some of the lowest. Small business owners often find income tax to be crippling because their businesses make much lower profits than more established companies.

Other Things to Consider

While the level of difficulty can vary between states, starting a small business anywhere is a huge challenge. It will require resolve, perseverance and more than a little luck. Generally, the most successful businesses get started while you still have other income or work you can do on the side. This extra income can help you stay out of debt and financially afloat until your company gets off the ground.

Nevertheless, all it takes is an idea at the right time. A really good idea, that fills a current need for a lot of people or satisfies a convenience can be wildly successful. But that all takes a profound amount of effort. It will involve long nights, busy days and a lot of creative planning and the willingness to persevere through difficulty. You will have to live on very little money while working insane hours. But if you are successful, you can reap all of the rewards.

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