Map Shows Cheapest States To Start a Business in 2025 [Video]

Many Americans pursue entrepreneurship as a way to make a side income, become their own boss and even create a long-lasting legacy.

However, starting your own company can have high starting costs, and not every location is equally ideal for business owners. A new report from Simplify LLC ranked states by most and least expensive to start a business in 2025.

Why It Matters

Small business owners are facing increased pressure as President Donald Trump levies tariffs on Canadian, Mexican and Chinese imports.

The tariffs, which the Trump administration says aim to curb illegal immigration and drug trafficking, are likely to increase costs for small business owners especially, as they often operate on thin margins.

What To Know

More Americans are starting their own businesses than ever, with the U.S. Census recording new business applications surged by 59 percent over the last five years compared to 2015 to 2019.

However, the affordability of beginning your own company can vary dramatically …