The 10 Best States for Business in 2025

1. California

Rank last year: #1

California remains the best state for business in 2025

For the fourth consecutive year, California ranks number one in Workwell Global’s best states for business, based on the highest number of workers onboarded by our clients in 2024.

Despite high living costs, strict employment regulations, and high-profile companies like Tesla relocating from California, businesses continue to be drawn to the Golden State. Here’s why:

The most profitable US economy

If California was a country, it would be the fifth-largest economy in the world, larger than India, the United Kingdom, and France. Yes, you read that right… California’s Gross State Product (GSP) hit $4.132 trillion in Q3 2024, making it the largest state economy in the US. Representing 14.1% of the national GDP, according to the US Bureau of Economic Analysis.

It is important to look at GDP rates when choosing an area to do business in as high rates indicate a profitable economy, and California certainly paints a profitable picture for businesses.

The number 1 talent market for tech in the US

California is by far the most populous state in the US, home to over 39 million residents, a big contributor to why the state consistently ranks number one in terms of US employment numbers.

A considerable number of companies are hiring within California, proved by our own internal data, majorly due to the 1.8 million tech workers. According to CompTIA’s 2024 Tech Workforce Report, California remains the largest tech talent hub in the US raking up 24% of all tech employment nationwide. Home to Silicon Valley, California houses tech giants such as Apple, Google, and Meta, making it the most attractive state for tech hiring and business expansion.

Standard of higher education in California

California’s higher education system continues to play a key role in its workforce competitiveness. According to the California Community Colleges Chancellor’s Office, over 2.1 million students are enrolled in California Community Colleges, making it the largest higher education system in the US.

California’s educated workforce is further highlighted via California’s new higher education commitment to provide first time students in the state two free years of community college .

Californian companies receive highest venture capital 

California remains the top state for venture capital investment. According to Carta, startups in California secured 48.79% of all US venture capital in 2024, up from 39.69% in 2023. Venture capital investment in California in 2024 was nearly five times more than any other state.

Consider the price tag and strict employment laws that come with doing business in California

Yes our data shows California as one of the top states for business in regard to  employee onboards. But we often don’t recommend the state when a company is first entering the US market due to the high costs of doing business. Less traditional states have climbed our rankings in previous years due to less strict employment laws, more business-friendly taxes and offering a lower cost of living. So, keep reading to find out the best states for business in 2025.

2. Texas

Rank last year: #3

We talk a lot about Texas at Workwell Global, mainly because we are living proof of one of the many companies that seized the benefits Texas has to offer, relocating our New York US headquarters to Austin in 2020.

The state has gone from strength to strength, with Workwell Globals client’s US employee onboards almost doubling in 2021, and that trend hasn’t stopped as more companies are choosing to do business in Texas.

Texas continues to attract major companies and top talent, proving its position as one of the best states for businesses expanding into the US.

After briefly slipping behind Texas in previous years, New York reclaimed second place in 2023  only to be overtaken by Texas again in 2024 to secure second place in our best states for business list. The continued back-and-forth between these two economic powerhouses highlights just how closely matched they are when it comes to business opportunities, with companies weighing factors like access to global markets, elite talent pools, and strong infrastructure.

A contributor as to why Texas remains a major player for employee onboards is due to 52 Fortune 500 companies choosing to headquarter there, one of the highest counts of any state, contributing to the number of jobs available.

These large corporations drive job creation, stimulate growth across multiple industries, and consistently generate demand for skilled contractors. As a result, Texas remains the second best state for business in 2025.

Texas has one of the lowest tax burdens in the US   

One of the main reasons Texas ranks as one of the best states for business for companies entering the US market or expanding within  because it has one of the lowest tax burdens in the US. Businesses and employees can both benefit from more disposable income, thanks to the following tax rates in Texas:

• Personal income tax – 0%
• Corporate income tax – 0%
• Combined state and local sales tax –8.25%

Unlike many other states, Texas does not charge a corporate income tax, reducing operational costs for businesses

However, Texas imposes a corporate franchise tax instead of a traditional corporate income tax. The state also charges a sales and use tax that is applied to most retail sales, leases, and taxable services.

Everything is bigger in Texas, including the talent

The saying is true everything is bigger in Texas. As the second-largest state in the US, nearly three times the size of the UK and home to over 30 million people, Texas offers a vast market, abundant talent, and a thriving economy, making it one of the best states for business.

The state is also a leader in higher education, home to 226+ colleges and universities. A city worth highlighting is Austin which has become one of the main homes to tech companies globally.

In recent years, Texas has become a hotspot for startups and established firms looking to scale. Additionally, companies like Meta and Tesla have relocated their headquarters to Texas, further enhancing the state’s tech landscape. ​

As mentioned earlier, Texas recently tied with New York with the most Fortune 500 companies in a state, with 52 based in Texas. If Texas ranks as one of the top states for Fortune 500 company headquarters, it’s likely a strong choice for your business too.

3. New York

Rank last year: #2

New York reclaimed its position from Texas in 2023, holding second place in our best states for business rankings. However, in 2024, Texas has edged ahead once again, pushing New York into third. Despite the shift, New York remains a top choice for companies due to the state’s access to global markets and economic influence.

The Most Connected US City

As we help companies from Europe and the UK enter the US market, New York is still one of the top states of choice when it comes to US business expansion, as it is one of the more straightforward locations to fly into.

New York City serves more international air travellers than any other area in the US, the most connected city in the US. This makes it perfect for business owners who need to travel both internationally and internally for business.

For example, business owners in the UK can catch a quick 7-hour flight to do business in New York City. Similarly, if you have an office in the UK or Europe, alongside operations in New York, the Eastern Standard time zone is very manageable, with a 5-hour difference.

New York has the third largest economy in the US  

According to the US Bureau of Economic Analysis, New York’s Gross Domestic Product (GDP) reached approximately $2.284 trillion in 2024, securing its position as the third-largest state economy in the US behind California and Texas.

For comparison, according to the International Monetary Fund (IMF), Canada’s nominal Gross Domestic Product (GDP) was approximately $2.2 trillion in 2024, and Italy’s GDP was approximately $2.1 trillion in the same year. This substantial economic output underscores New York’s significant contribution to both the national and global economies.​

New York also stands out for business as it is the financial and cultural capital of the world. Home to Wall Street and the United Nations headquarters, it has a significant influence on international affairs and setting global trends.

Whether you own a finance, fashion, or media business, you’re sure to find not only ready to buy clients in New York, but the best talent in your industry who want to ‘make it in NY.’

New York is home to 52 Fortune 500 companies, reflecting its corporate environment and contributions to GDP output. Notable corporations headquartered in the state include:

• JPMorgan Chase
• Verizon Communications
• Citigroup
• Pfizer
• PepsiCo

These multinationals lure ambitious professionals and graduates to the state every year. Companies often follow workers and there is nowhere better to look than New York for a diverse, highly educated, and large talent pool to choose from to grow business.

Taxes in New York

In terms of business-friendly states, New York does not rank high. High operation costs in the form of tax rates, rent, living costs, and wages, contribute to the cost of doing business in New York. As of 2025, New York’s tax rates range from:

• Corporate income tax – 6.5-7.25%
• Personal income tax – 4-10.9%
• Combined state and local sales tax – 8.53%

New York’s high ranking in our list of best states for business can be attributed to the excellence of financial and tech talent in the state vs the cost of doing business.

To ease the burden of doing business in New York. It is worth noting that the state does offer small business owners several incentives and tax relief to ease the burden of doing business in New York. One program worth highlighting is START-UP NY, an incentive for new companies to locate on or near universities in New York to operate tax-free.

4. Florida

Rank last year: #6

In 2021 and 2022 Florida hit the headlines as businesses fled traditionally popular states like New York to reap the benefits of the sunshine state. We witnessed the impact of this departure from 2020 to 2021, when the number of worker onboards within Florida from Workwell Global clients experienced a 100% increase.

The trend towards hiring employees in Florida shows no signs of slowing down. In 2022, Florida overtook New Jersey as the 5th most popular state for worker onboards to Workwell Global’s internal data. After ranking 6th in 2023, Florida climbed back up to 4th place in 2024, with a 26% increase in worker onboards.

Strategic location with world class transportation routes 

If you want to have a global business in an accessible area with efficient transportation routes should be at the top of your agenda when choosing an office location. Whether you must travel often for international or national client meetings, have numerous offices or need to ship or access goods, a connected location enables you to easily travel by land, sea, or air.

Florida’s strategic location enables you to easily access the east coast of the US and provides a gateway to Latin America.

Florida Tax incentives  

Florida boasts one of the lowest tax burdens in the US. Taxes in Florida include:

• State individual income tax – 0%
• Combined state and local sales tax – 7.02% 7.00%
• Corporate income tax – 5.5%

A bright lifestyle in the sunshine state 

The clue is the nickname, ‘The sunshine state’. Florida boasts 237 average days of sunshine per year, triumphing over the US average of 205 days. This tropical lifestyle has attracted talent and businesses alike, not only this, but Florida has a relatively low cost of living.

Why Florida Is One of the Best States for Business in 2025

Further highlighting how Florida’s lifestyle continues to attract residents, the population grew by 2% between July 2023 and July 2024, adding 467,347 new residents and bringing the total population to over 23.3 million. In comparison, Texas experienced a slightly lower growth rate of 1.8% over the same period.

Florida’s Rising Venture Capital Investment

Florida’s venture capital scene is also thriving. In the first half of 2024 alone, companies based in the state secured over $2.1 billion across 332 deals with Miami continuing to play a key role in attracting investment. While Miami’s exact total remains unclear, the state’s consistent flow of VC funding highlights its growing economic appeal and strong investment landscape.

With a growing talent pool and strong investor interest, it’s no surprise Florida remains one of the best states for business in 2025.

5. New Jersey

Rank last year: #5

It’s no surprise New Jersey is one of Workwell Global’s top states for business 2025. For the fourth year running it remains the 5th most popular state for worker onboards by international businesses hiring in the US. We’re going to explore why.

Taxes in New Jersey   

New Jersey has relatively high tax business rates; ranging from 6.5-9% for corporate income tax, a combined state and local sales tax of 6.6%. High earners will also have to dig deep when working in New Jersey due to the 10.75% top marginal individual income tax rate. This makes it the fourth highest in the US in 2023, according to analysis released by the Tax Foundation.

Despite the high tax rates and being in New York’s shadow (literally – You can easily view New Jersey’s skyline from Manhattan), New Jersey has everything a business needs to succeed in the US.

The easy commute to New York is a main selling point of course, but the short ferry ride to Manhattan isn’t the only benefit of doing business in New Jersey.

Access to a large business and talent market  

New Jersey is in the heart of the Northeast of the US, which is home to a large and affluent market. With easy access to major metropolitan areas such as New York City and Philadelphia, businesses in New Jersey have the potential to tap into significant talent and business networks.

New Jersey also has several airports, ports, and major highways, making it an ideal location for businesses that need to transport goods or travel frequently for business purposes.

Lower cost of living and rent than New York

Perhaps one of the main selling points of New Jersey is despite it having a high cost of living based on the US average, it is often more affordable for businesses than its neighbor state New York. This makes it a highly attractive option for businesses that want easy access to New York City, without the higher price tag.

New Jersey Business Funding  

The New Jersey government has implemented an array of funding to help you start doing business in New Jersey over the last few years. Whether you require a loan to finance your US business expansion, are a startup looking for capital, or want to make the most of tax incentives for job creations, the state’s policies are designed to make it easier to grow a business. Some options (with eligibility criteria) include:

• Angel Investor Tax Credit Program – Establishes refundable tax credits for investors in eligibile emerging technology businesses in New Jersey.
• Aspire – A gap financing tool to support commercial, mixed-use, and residential real estate development projects.
• Catalyst R&D Voucher Program – Supports New Jersey-based start up companies to accelerate the development and innovation of technologies.
• Digital Media Tax Credit – A tax credit equal to 20-25% of qualified digital media production expenses to encourage companies to produce content in New Jersey.
• Investments in Women-Led Start-ups – An investor network to increase available capital for female-led businesses in New Jersey.
• NJ Accelerate -  Incentivizes graduate companies to locate and grow in New Jersey, including a 1:1 matching loan funding up to $250,000 and rent support for up to 6 months for graduate companies.

6. North Carolina

Rank last year: #4

We put North Carolina on our radar in 2022 after seeing a +381% year-on-year increase in client worker onboards in 2021, making it one of the fastest-growing states in our rankings. And it’s remained a top-ranking state ever since. More proof that it’s one of the best states for business.

North Carolina remains a strong performer on our list, securing a top 10 spot for another year. While it moved to 6th place in 2024, the state continues to attract high levels of contractor placements thanks to its thriving business environment, competitive tax structure, and growth in key sectors like tech and life sciences. With continued interest from recruitment agencies and employers alike, North Carolina firmly holds its position as one of the best states for business.

North Carolina, particularly Charlotte, has become a key destination for businesses expanding into the US, thanks to its high-quality tech talent and attractive tax incentives.

Taxes in North Carolina

North Carolina has been gradually reforming its tax system since 2013, moving from a progressive income tax model to a lower, more competitive flat rate structure. The 2024 tax rates in North Carolina are:

• Individual income tax –  4.5% with plans to drop further to 3.99% by 2026.
• Corporate income tax – 2.25% as of January 2025, with plans for full phase-out by 2030, making North Carolina one of the few states with no corporate tax.
• Combined state and local sales tax – 6.99%

North Carolina’s progressive tax reductions and business-friendly policies have made it one of the best states for businesses looking to expand into the US market.

Thriving Tech and Life Sciences Sectors in the ‘Research Triangle’

Raleigh is often the most sought-after area in North Carolina and is becoming one of the main east coast tech hubs of choice for companies entering the US market.

The Raleigh, Durham, and Chapel Hill area of North Carolina is named the ‘Research Triangle’ because of its proximity to three major research universities and has become a hub for technology and life science companies.

Furthermore, over 43% of North Carolina’s working population being college educated, has been a big pull for employers who want access to an educated workforce. Apple’s pledge to Raleigh by 2030 to invest $552 million in the state is proof of the progressive tech hub forming in North Carolina.

Highlighting the popularity of the Life Sciences sector in North Carolina, reported:

• There are over 840 life sciences companies in North Carolina.
• 634 of these life science companies were located in the Research Triangle region.
• There were over 100K life sciences jobs in North Carolina  in 2024, a milestone for the state.
• The NC Life Sciences Apprenticeship Consortium has supported 249 individuals to date with scholarships for the BioWork course, a pre-apprenticeship program designed to launch careers in biomanufacturing.

7. Massachusetts

Rank last year: #7

Massachusetts has maintained its position as the 7th top state for business in 2025.  Businesses, including a multinational technology company, Businesses, including the LEGO Group, who recently announced they plan to relocate its US HQ to Boston after 50 years in Connecticut, are increasingly choosing Boston as their home within the state – here are some reasons why.

Travel Faster in Boston – the closest US city to London 

Boston spearheaded the way for accessible and fast transport in the US with the country’s first subway system. Boston’s public transport usage is the fourth highest in the US, with their historic system still effectively operating, making the city extremely convenient for commuters.

Businesses expanding to the US from the UK are sure to feel at home in Boston in comparison to other US cities, as it is deemed a ‘walkable’ city. It is much smaller geographically, making it more manageable for corporate travellers and those living in the city to travel around.

In addition to this, Boston is the closest US city for UK business owners traveling from London. This makes Massachusetts one of the best states for business when operating from the UK if you need to travel to the US frequently for meetings.

Taxes in Massachusetts  

In 2022 Massachusetts brought in a rule that incomes over $1 million will not be charged a personal income tax rate of 9%. For those below that threshold, the state charges a flat individual income tax of 5%, putting it in the lower half of the 50 states.

Tax rates in Massachusetts include:

• Corporate income tax – 8%
• Individual income tax – 5-9%
• Combined state and local sales tax – 6.25%

Access the best universities in the world in Massachusetts  

Home to Harvard University, deemed the third best university in the world for 2025 by Times Higher Education, Massachusetts has some of the best brains in business. Not to mention, the Massachusetts Institute of Technology ranks number 5 in terms of top universities globally. It is little  wonder huge companies like Liberty Mutual, Staples, and General Electric are headquartered in the state.

8. Georgia

Rank last year: #10

Georgia has climbed to the number 8 spot on our best states for business list in 2025, up from 10th last year. The state continues to show steady momentum, with a 24% year-over-year increase in worker onboards.

So why are more businesses expanding to or hiring employees in Georgia?

Business incentives in Georgia

The favourable business climate and government commitment to strengthening local workers’ skills and companies’ development are just a few of the many reasons that landed Georgia the number 1 best state for business for 10th consecutive year for business for 2023 by Georgia USA.

Taxes in Georgia include:

• Corporate state tax – 5.75%, after being lowered from 6% in 2019.
• Combined state and local sales tax –7.38%
• Individual income tax – 5.49%

The Georgia Department of Economic Development helps businesses grow within the state, with project managers located in all 12 regions. The project managers are available for consultancy services including:

• Help with international trade to reach global markets
• Tax credits and exemptions to reward growth
• Research and market information to guide decision making.

Georgia’s youthful skilled workforce    

Companies in Georgia have access to a large talent pool due to the state having the 8th largest population in the US. The state has low unionisation and at-will employment so for companies that need contractors for short-term projects with quick turnaround times, Georgia’s employment laws allow things to move fast, making it one of the most business friendly states in the US.

The median age of Georgia’s working population is lower than the US average at 37.4% , with Atlanta being a top 5 market for millennials. With a steady stream of graduates hailing from universities in the area, and home to over 52,000 software developers, information analysts, and 44,000 plus engineers, Georgia is especially appealing to tech companies.

That said, Atlanta dominates Georgia’s job market, accounting for 62.13% of all job postings in the state. It’s no surprise that major corporations like Coca-Cola, The Home Depot, and Delta Air Lines, three of Georgia’s 18 Fortune 500 headquarters, call Georgia home.

Georgia’s commitment to workforce development

Additionally, Georgia’s commitment to developing the local workforce is clear through their internationally acclaimed workforce training program –Georgia Quick Start.

The program provides free customised workforce training to qualified new, expanding, or locally based businesses to help them compete in the global economy. The large skilled workforce and quick start program is a win-win for companies hoping to grow by expanding to Georgia.

Reach global and US markets easily in Georgia

Georgia’s convenient location has bolstered its ranking as one of Workwell Global top states for business 2025. Domestically, companies in Georgia can access 80% of the US market within a two-hour flight time or two-day drive.  For this reason alone, it is little wonder that UPS is headquartered in Atlanta.

The location also enables companies to serve the ever more popular south-east United States, world-class ports and airports mean that global markets can be reached with ease.

9. Illinois

Rank last year: #9

Despite Illinois being one of the top 3 states people are leaving in the US, due to tax rates and the state’s fiscal strain, Illinois is still on our list of best states for business, even climbing one place this year according to our internal data. Why?

Illinois is one of 5 states crossing the $1 trillion GDP threshold  

Illinois still ranks within the top 10 states for Workwell Global US worker onboards largely because it is the fifth largest economy in the US.  Illinois is the fifth state to top $1 trillion in annualised GDP, joining California, Texas, New York and Florida as one of the highest grossing states for business in 2025.

Chicago is the main economic powerhouse contributing towards Illinois’ economic output and would rank 21st in the US if the city was a state. Chicago’s economy alone is bigger than many countries, which is a key indicator of the strength of the area for business.

Taxes in Illinois  

Illinois has a flat income tax rate system and a personal income tax rate that doesn’t seem as steep as other high-profile states. Tax rates in Illinois include:

• Individual income tax –  4.95%
• Corporate income tax –  9.5%
• Combined state and local sales tax – 8.86%

Chicago is the third largest metro area in the US

The city of Chicago in Illinois is the third-largest metropolitan area in the US, providing companies with a plentiful supply of customers and employees. Chicago is centrally located in the US and connects to almost every major city across the US and internationally. If you need to travel frequently for business, Illinois could be the destination for you.

Business Incentives in Illinois 

A competitive range of business incentives are available to companies expanding to Illinois. Loans and grants businesses can avail of include assistance with equipment, working capital, tax credits and exemptions, and land acquisition.

10. Ohio

Rank last year: didn’t rank

Ohio, known as the Buckeye State, is making its first appearance in our top states for business 2025 list due to the increased number of worker onboards by our clients.  From its thriving tech scene to strong manufacturing roots, Ohio is quickly becoming one of the best states for business for companies looking to scale smartly across the US.

Ohio’s Stable and Growing Economy

As of 2024, Ohio’s economy reached approximately $927.7 billion in GDP, showing steady growth and solidifying its place as one of the larger state economies in the US. For businesses seeking reliability with room to grow, Ohio is proving itself as one of the best states for business to keep on your radar.

Taxes in Ohios

Ohio’s business-friendly tax system includes:

• Individual Income Tax –  For the 2024 tax year, Ohio employs a graduated income tax system with rates ranging from 2.75% to 3.5%. 
• Commercial Activity Tax (CAT) –  Instead of a traditional corporate income tax, Ohio levies a Commercial Activity Tax at a rate of 0.26% on gross receipts exceeding $1 million. This simplifies the tax process for businesses operating within the state. ​
• Sales Tax – The state imposes a sales tax rate of 5.75%. However, local jurisdictions may add their own taxes, leading to varying total sales tax rates across counties. For instance, as of April 1, 2025, Franklin County’s total sales tax rate increased to 8%. ​
  

Central US Location

Ohio’s central location gives businesses access to over 60% of the US population within a one-day drive. Its strong transport links air, road, and rail make it ideal for companies who need to move fast. If logistics, shipping, or market reach matter to your business, Ohio is one of the best states for business to be based in. 

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Business Incentives in Ohio

Through JobsOhio, the state offers grants and credits that make Ohio one of the best states for business and provide real impact for growing companies.

• Job Creation Tax Credit –  A refundable tax credit applied against a company’s commercial activity tax liability, based on the creation of new jobs within Ohio
• Economic Development Grants for equipment and infrastructure – Provided by JobsOhio, this grant supports fixed-asset investments and infrastructure improvements, encouraging business expansion and economic development.​
• R&D Investment Tax Credit for innovation-driven businesses –  A non-refundable credit aimed at promoting innovation in Ohio by offsetting costs associated with research and development activities.​

It’s the kind of practical, performance-based support that’s helped Ohio break into our best states for business list for the first time.

Major Investments in Tech and Advanced Manufacturing

Ohio is seeing huge investment from big names like Amazon Web Services, who plans to invest $23 billion into new data centre campuses by 2030. Meanwhile, defence tech company Anduril Industries is building a 5-million-square-foot facility near Columbus, creating 4,000+ jobs.

This momentum is why Ohio is fast becoming one of the best states for business in advanced manufacturing, logistics, and cloud infrastructure. If you’re considering the Midwest, Ohio is one to watch.

Another state that narrowly missed our top 10 best states for business 2025 list

Colorado narrowly missed a spot in our top 10 best states for business 2025 list, however it still deserves an honourable mention. We’ve been monitoring Colorado’s progress closely, and it’s evident that the state is becoming an up-and-coming destination for companies seeking expansion opportunities.​

In 2024, the state’s GDP reached approximately $553 billion, showcasing just how far the state has come. Known for its lifestyle appeal and strong talent pool, it’s no surprise we’ve seen a 114% rise in contractor placements here.

Sectors like healthcare, retail, and business support services are thriving in Colorado, and the employment and recruiting industry alone is now worth over $626.2 million. With growing demand for skilled professionals and a supportive business climate, Colorado is quickly becoming one of the best states for business to keep on your radar.