When deciding to start your own business, it is critical to consider where the base of operations will be located. That decision can have widespread impacts on the future of your new business, including the quality of the workforce available in your labor market and the cost of doing business in the state you choose.
For those doing business in North Carolina or thinking of starting a business in the Tar Heel State, there is good news. According to CNBC’s latest report, “America’s Top States for Business,” North Carolina is considered one of the best states to do business, ranking fourth nationwide.
CNBC ranked each state using 51 criteria, and then categorized all 51 areas into 10 more expansive categories. The most heavily weighted categories are:
- Cost of doing business
- Workforce
- Quality of life
Those categories account for 350 points each, out of the 2,500 overall potential points. Included in the cost of doing business assessment are a variety of important factors, such as:
- Taxes, including individual income and property taxes and business taxes
- Utility costs
- Wages
- Rental costs
Another heavily weighted category, with a possible 325 points, was the economy. As you would expect, a state with a strong economy is often typically a good state in which to do business. The factors considered in the study to determine the strength of the states’ economies included:
- Growth
- Unemployment rate
- Real estate market
- Credit ratings and outlook
- Projected budget deficits or surpluses
- Number of major corporations in the state
An additional category worth noting is “business friendliness,” which ranked states based on “their legal and regulatory frameworks to business.” With North Carolina’s high marks, it goes to show our state is a good choice for those considering starting their own business.
When establishing a new business in North Carolina, it is critical to discuss the steps involved in the formation with an experienced business law attorney.
Source: CNBC, “North Carolina Places Fourth in CNBC’s Top States for Business 2012,” July 10, 2012.