News Summary
According to a WalletHub survey, Florida has been ranked the best state for starting a business in 2025 due to its low corporate tax rates and strong economy. The state leads in business environment metrics, showcasing significant growth in small businesses and a supportive workforce. Upcoming tax changes are expected to further boost opportunities for entrepreneurs in Florida, making it an appealing destination for new business ventures. Other states, like Georgia and Utah, follow closely behind in the rankings.
Florida has been designated as the best state to start a business in 2025, according to a recent survey conducted by WalletHub. The ranking highlights Florida’s low corporate tax rates, robust economy, and a wealth of resources favorable for entrepreneurs. This assessment comes at a crucial time for new business owners seeking a conducive environment amidst high national failure rates, where approximately half of all new U.S. businesses fail within the first five years.
WalletHub considered various factors for its ranking, including business environment metrics such as work week length, small business growth, and startup rates. Florida ranks first in the business environment category, with significant contributions from its 11th-highest business revenue growth rate and its position as the 10th-lowest state for corporate taxes in the nation. Though it is important to note that Florida does not secure top ranks in ‘access to resources’ (14th place) or ‘business costs’ (28th place), these areas are not seen as barriers to its growing entrepreneurial scene.
Significantly, Florida’s working-age population, which consists of individuals aged 16-64, is increasing faster than all but six other states. Additionally, the state boasts the third-highest percentage of enthusiastic workers, as many engage actively with local business initiatives, encouraging an environment supportive of entrepreneurship. Notably, Florida also ranks second in the nation for startups per capita and exhibits the highest percentage of adults participating in entrepreneurial activities. From 2016 to 2022, Florida experienced a nearly 16% growth rate in small businesses, the fourth-highest in the country.
In comparison to other states, Georgia follows Florida at a close second, while Utah, Texas, and Idaho round out the top five. On the contrary, states such as Rhode Island, Connecticut, New Jersey, Alaska, and Maryland ranked lowest in terms of facilitating new business establishments.
A significant fiscal development on Florida’s horizon is the elimination of state and local sales tax on commercial rent, set to begin in October 2025. This change in tax law is anticipated to provide substantial savings for businesses, with estimates suggesting individual companies may save thousands annually. For instance, Bang & Olufsen projects savings of around $5,000 each year. Currently, Florida remains the only state that places taxes on commercial leases. The removal of this tax is expected to generate billions in statewide savings for tenants and greatly impact the commercial real estate market positively.
Discussions on supporting Black-owned businesses in South Florida highlight essential practices such as networking, effective marketing strategies, and maintaining financial order. Entrepreneurs also emphasize the significance of personal credit in establishing business credit. Miami-Dade is focusing on facilitating business training that includes advancements in artificial intelligence (AI) to improve operational efficiencies. AI adoption by small business owners is growing, especially in areas like email communication and proposal writing, which are critical to enhancing business operations.
Overall, Florida’s combination of favorable tax conditions, an engaged workforce, and a flourishing startup culture presents an appealing landscape for both new and existing business owners. With numerous factors working in their favor, entrepreneurs are optimistic about the opportunities that lie ahead in 2025.
Deeper Dive: News & Info About This Topic
- Local 10 News: South Florida Restaurants Shuttering
- Wikipedia: Small Business
- Newswire: Florida Small Business Owner
- Google Search: Florida Small Business Resources
- My News 13: Florida Business Owners Tax Relief
- Google Scholar: Florida Business Tax Relief
- WJHG: Bay County Best for Small Business
- Encyclopedia Britannica: Florida Economy
- Miami Herald: Florida Business Landscape
- Google News: Florida Business News
Author: STAFF HERE ORLANDO WRITER
ORLANDO STAFF WRITER The ORLANDO STAFF WRITER represents the experienced team at HEREOrlando.com, your go-to source for actionable local news and information in Orlando, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Orlando International Fringe Theatre Festival, Megacon Orlando, and Central Florida Fair. Our coverage extends to key organizations like the Orlando Economic Partnership and Hispanic Chamber of Commerce Metro Orlando, plus leading businesses in leisure and hospitality that power the local economy such as Walt Disney World Resort, AdventHealth, and Universal Orlando. As part of the broader HERE network, including HEREJacksonville.com, HEREPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
