GREAT FALLS — Many factors contribute to how successful a small business is, but according to a recent study, Montana is the best state to open a small business.
The study done by The Blueprint found that Montana was ranked the number one best state to open a small business in 2021.
The factors used to determine the ranking included tax climate, consumer spending within the state, and the rate of new entrepreneurs.
They also considered the business survival rate over five years, labor costs, and climate. The top five states are Montana, South Dakota, Florida, Texas and Idaho.
On the other end of the spectrum, the bottom five states listed are New Jersey, Rhode Island, Virginia, Connecticut and the District of Columbia.
The report says of Montana:
Montana scores high in several areas, including the number of new businesses calling Montana home. A five-year business survival rate of 53.4% puts the odds of success in your favor.
With a median annual income of $57,153, labor costs should be reasonable, and geographically, Montana holds little risk of natural disasters, with forest fires the major culprit in 2020.
Montana’s corporate tax climate is not as optimal as it could be, with a corporate tax rate of 6.75%, while the individual income tax rate tops out at 6.9%. Montana does not currently have a state sales tax.
“Entrepreneurship is very important for the Golden Triangle,” said Brett Doney, CEO of Great Falls Development Authority. “Montana is number one in entrepreneurship and we want to keep that and even grow it, which is bucking the national trend.”
The Great Falls Development Authority offers services to assist people who want to open their own small business here in Great Falls. Click here to visit their website.
