A new study from Simplify LLC to determine the Most and Least Expensive States to Start a Business in 2025 found Wisconsin is the No. 22 least expensive U.S. state to start a business this year.
The number of new businesses in America increased by 59.7% in 2020–2024 as compared to 2015–2019. While this unprecedented growth is expected to boost the economy, only 34.9% of companies started in 2014 remain in business today.
Rising business expenses, driven by historic inflation, pose a major threat to survival rates. Companies that strategically choose locations to help reduce costs such as wages, rent, utilities, taxes, and supplies will have a stronger chance of success.
The new study used the most recent data from the Bureau of Labor Statistics, Federal Reserve of St. Louis, Tax Foundation, Energy Information Administration, and others to rank the U.S. states, analyzing key factors such as taxes, business filing fees, commercial rent and utilities, labor costs, regulations, and small business lending.
Wisconsin’s best category is commercial rent, where the average price per square foot is $13.50 (ranking No. 4). The state has a 65.7% labor force participation (ranking No. 12), with an average annual wage of $61,073 (ranking No. 19). The SBA lending rate in Wisconsin is $8.80 million per 100,000 residents (ranking No. 21), while monthly electricity comes out to $676.07 (ranking No. 28), and LLC filing fees total $131 (ranking No. 36). The state also operates under 165,311 regulations (ranking No. 39) and enforces a 7.9% average corporate tax rate (ranking No. 43).
