Indiana ranked as 10th best state to start a business

FARMERSBURG, Ind. (WTWO/WAWV)— If you have ever thought about starting your own business, where you start it can either save you money or cost you more than you bargained for.

The folks at Northwest Registered Agent, a provider of business formation services, have compiled their list of the most affordable states to start a business in. Between formation fees, compliance filings, taxes, and other recurring costs, startup fees can start to stack up in places that aren’t as entrepreneur-friendly. The list was compiled based on which states offered the lowest startup costs and business-friendly tax regulations.

“Choosing the right state to launch can significantly impact a new businesses’ budget,” said Aigner Wilson, Senior Content Specialist, Northwest Registered Agent. “Our 2025 ranking helps founders spot hidden savings while tapping into states that are actively supporting entrepreneurs.”

Indiana comes in at #10 on the list. Northwest Registered Agent said that Indiana made it so high on the list due to state fees staying under $100 when filing online, as well as a corporate income tax rate of 4.9% (according to numbers from July 2021). Northwest Registered Agent also pointed out that Indiana provides a comprehensive resource for finding entrepreneurial support, access to capital (an average of $24,502 per small business), state business incentives, and more on the Indiana Economic Development Corporation website.

The rest of the top ten states are listed below:

1. Wyoming – Ultra-low startup fees, no corporate income tax, and one of the nation’s most competitive tax structures earned Wyoming the No. 1 spot.
2. South Dakota – Entrepreneurs benefit from zero personal or corporate income tax and one of the lowest statewide sales taxes in the U.S.
3. Alaska – With no personal income tax, no statewide sales tax, and generous regional incentives, Alaska is a surprisingly founder-friendly frontier.
4. Florida – No personal income tax, moderate corporate tax rates, and world-class infrastructure—from airports to seaports—making Florida a launchpad for global business.
5. Montana – Supportive of startups with low income taxes and no state-level sales tax.
6. Nevada – A business-friendly legal environment with no individual or corporate income tax.
7. Texas – Strong economic growth with a large talent pool and no individual income tax.
8. Utah – A robust tech ecosystem with affordable startup costs and a low corporate tax rate.
9. North Carolina – Business-friendly policies in a growing tech sector with a low corporate tax rate.