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Georgia is the best state in the country for business growth, says a new study from business consulting firm Venture Smarter. The runner-up was Virginia, followed by Arizona.
Researchers analyzed data from the U.S Bureau of Labor Statistics to discover the business growth rate in each state based on the number of establishments in December 2021 compared to December 2022.
Georgia came out on top with a business growth rate of 13.50%. In December 2022, there were 397,515 business establishments compared to 350,189 in December 2021. The Peach State offers a reasonable corporate income tax rate of 5.75%, as well as a job tax credit to reduce corporate tax liability for eligible businesses.
Virginia saw a business growth rate of 10.50% and the number of businesses increased from 305,345 in December 2021 to 337,394 a year later. Virginia offers many small business incentive programs from tax exemption for rehabilitated structures to tax credits for creating employment.
Arizona was close behind with a business growth rate of 10.40% after seeing the number of business establishments rise from 191,756 in December 2021 to 211,683 the following year. Arizona is home to the 14th lowest corporate income tax rate in America at 4.9%.
The top 10 best states for business growth was rounded out by Montana and Vermont at 10.20%; Michigan at 9.80%; South Carolina at 9.60%; North Carolina at 9.20; Colorado and Hawaii at 9.10%; Idaho at 8.90%; and Utah at 8.40%.
What was the worst state for business growth? Washington at -16.80%. The state had 284,440 establishments in December 2022, which decreased by 47,644 in December 2022; Washington was the only state to witness a decrease of business establishments.