Simplify LLC released a study on the Most and Least Expensive States to Start a Business in 2025 using the most recent data from the Bureau of Labor Statistics, Federal Reserve of St. Louis, Tax Foundation, Energy Information Administration, and others. Wisconsin ranked just inside the top half, coming in as the No. 22 least expensive state to start a business.
The rankings were determined by analyzing nine key factors such as taxes, business filing fees, commercial rent and utilities, labor costs, regulations, and small business lending.
Wisconsin ranked highest in the average rent per square foot for commercial real estate at $13.50 (No. 4) and its labor force participation is 65.7% (No. 12 tied). The Badger State also offers almost $8.8 million in SBA loans per 100,000 residents (No. 21) and the cost of electricity averages $676.07 (No. 28). Unfortunately, there are downsides — for starters, Wisconsin has a corporate income tax rate of 7.9% (No. 43) to go along with 165,311 regulations (No. 39), and $131 in LLC filing fees (No. 36).
The 10 least expensive states are: Utah, South Dakota, Colorado, Wyoming, Montana, Idaho, Nebraska, Kansas, Nevada, and North Dakota.
Meanwhile, the 10 most expensive states are: California, New York, Hawaii, Tennessee, Massachusetts, Alabama, New Jersey, D.C., Illinois, and West Virginia.
