Several Florida cities made the top 10 list.
TAMPA, Fla. — A new report ranks Tampa as the second best place to start a business.
The personal finance company used three key factors to determine its rankings: business environment, access to resources, and cost of doing business.
Personal finance firm WalletHub published the findings, saying lower corporate tax rates and a higher number of investors per capita give businesses more resources to weather Tampa's difficult early years. .
What does this mean?
Tampa's low corporate tax rate allows businesses to keep more of their profits. According to the Florida Department of Revenue, the tax rate varies depending on when the business was started, but is 5.5% for tax years beginning after January 1, 2022.
This is low compared to other states in the country. According to the Tax Foundation, Minnesota has the highest tax rate at 9.8%;
Many businesses are taxed as pass-through businesses with income reported under personal income taxes and therefore are not subject to corporate income tax. Florida is a state with no personal income tax, so businesses in the state do not have to pay business income taxes.
Several Florida cities ranked in the top 10, with Orlando coming in at number one. The top 10 are:
Best cities to start a business
- Orlando, Florida
- tampa, florida
- charlotte, north carolina
- Jacksonville, Florida
- Miami, Florida
- atlanta, georgia
- Fort Worth, Texas
- Austin, Texas
- Durham, North Carolina
- St. Petersburg, Florida
How was the list created?
WalletHub compares 100 cities using data from the U.S. Census Bureau, Bureau of Labor Statistics, National Venture Capital Association, and many other sources.
Researchers assessed aspects of the business environment, access to resources, and costs using various indicators. We compare factors such as weekly working hours, number of startups per person, and industry diversity within the business environment. Access to resources included factors such as the availability of human capital, higher education assets, and growth in the working-age population. Business costs include corporate taxes, living expenses, affordable office space, and labor costs.
Each element is weighted with a certain number of points, with a maximum score of 100. Tampa's score was 62.73 and Orlando's score was 68.22.
Tampa ranked 4th in Business Environment score, 39th in Access to Resources and 26th in Cost of Doing Business.
