(The Center Square) – North Dakota has been ranked by Forbes as the third-best state in the nation to start a new business.
Various factors were used to determine the rankings, including business costs, business climate, economy, workforce and financial accessibility.
“North Dakota has always prided itself on being a business-friendly state,” Alison Ritter, North Dakota state director of National Federation of Independent Business, told The Center Square. “From low taxes to government agencies that are focused on helping businesses and entrepreneurs, North Dakota looks to set itself apart from other states. They have turned the state Commerce Department into a one-stop shop for anyone looking to start, expand or relocate a business. Commerce helps engage other state agencies to answer questions, look at available tax incentives or help with low interest loans.”
The state’s corporate tax rate is only 4.31%, and personal income is taxed at a rate of 2.1%. According to Forbes, in addition to lower taxes, new North Dakota business owners receive the highest average funding per business in the nation, nearly 50% more than the national average.
“The state enjoys a robust economy where the energy development sector is flourishing; agriculture is still going strong, a variety of financial resources are also easily accessible, there is a high-quality standard of living, and there are highly skilled and motivated workforce,” according to IncParadise.
Forbes also notes that owning a business requires dedication to success and commitment to adapt to various changes in the industry and workforce. Location is only one of several factors to consider when beginning to think about how to open a profitable business.
“Like other states, we continue to face workforce shortages and child care shortages, but the state has focused education efforts on producing career-ready students, whether that is through a certificate, trade schools or higher-education degrees,” Ritter said.
Indiana and Colorado bested North Dakota in the rankings. New York came in last.