RESEARCH TRIANGLE PARK – A new study ranks Raleigh #1 and Charlotte #2 as the best cities in the US to start an online business.
The report – from Business CenturyLink.com – considered a variety of criteria ranging from taxes to quality of life, Internet access and business environment.
A recent report by the NC State Treasurers Office recently reported that new business formation is at a rapid pace across North Carolina.
Here’s a look at the CenturyLink report and what it had to say about the top 10 cities:
1. Raleigh, NC
Raleigh is part of the North Carolina Research Triangle, a region in central NC. According to their website, the Research Triangle is described as “…a region that is home to some of the fastest growing companies and communities in the world.”
2. Charlotte, NC
Known as “The Banking Capital” for being home to Bank of America HQ and the Wells Fargo East Coast Division, Charlotte is recognized by the number of fintech companies headquartered in the city.
3. Austin, Texas
Austin has a population of 1,028,225. It is the 4th largest city in Texas, the 10th largest city in the US and known for the slogan “Keep Austin Weird”.
Seattle has been named the #1 Best Cities for Business by Forbes magazine two years in a row (2018 and 2019). The city is home to two of the richest people in the world, Amazon founder Jeff Bezos and Microsoft co-founder Bill Gates.
5. San Antonio, TX
Texas has one of the friendliest tax environments in the US and has no personal or corporate taxes. Some of the best companies in San Antonio include HEB, Prologis, ServiceNow, Frost Bank, and Pearson.
6. Richmond, Va
According to Forbes magazine, Richmond’s economy is primarily driven by law, finance and government, with federal, state and local agencies located downtown. Richmond was ranked 9th in the Quality of Life Index.
7. Dallas, Texas
In 2019, Forbes magazine ranked the city #2 in Best Places for Business and Careers and in 2020 as one of the Best Places to Retire. Some of the best companies in Dallas are AT&T, Frito-Lay and Texas Instruments.
8. Jacksonville, FL
Jacksonville, Florida has a population of 939,717. It is the largest city in Florida and the 14th largest city in the United States. Overall, Florida ranks fourth in the Tax Climate Index.
Madison, WI ranks #6 on the Quality of Life Index. Wisconsin received an A- in the 2020 Digital States Survey. The city has a population of 265,158, is the second largest city in Wisconsin and the 86th largest city in the United States
10. Oklahoma City, okay
The 2022 Tax Foundation announced that three bills were signed into law in May 2022 to lower Oklahoma’s income and corporate tax rates. The tax bracket is reduced by 0.25 percentage points. Corporate tax will also be reduced from 6% to 4%.
Criteria for the report
Here are the data points used in creating the report:
Quality of Life Index – The list includes 53 cities with the highest quality of life index from the United States Quality of Life Report. (Data was last collected on April 19, 2022 and changes regularly). This variable is based on an average of the following variables: Purchasing Power Index, Safety Index, Health Index, Cost of Living Index, House Price to Income Ratio, Transport Commute Index, Pollution Index and Climate Index.
control rank – This variable was determined based on the rank provided by the tax foundation. The data spans 50 states and is based on the ranks and component ranks of the 2022 State Business Tax Climate Index. To obtain the overall rank, the following were used: corporate tax rank, individual income tax rank, sales tax rank, property tax rank, and unemployment insurance tax rank.
Economic Ranking – A US News record provides the data for this variable. They measured countries’ economic stability and potential based on the following variables: business environment, employment and growth.
Average speed and broadband – This dataset includes 50 US states included in World Population Review’s “Average Internet Speed by State 2022.” Internet speed is important as it measures how much data and information can be transmitted over the Internet with a single connection. Bandwidth measures the number of frequencies that a network connection can handle.
Government Tech Class – a variable created based on the biannual Government Technology Digital States Survey 2020. This survey evaluates states’ use of technology to improve service delivery, increase capacity, streamline operations, achieve policy goals, and assigns a score to each state based on quantified results. The scores are based on a staff, and for this piece we had to give the notes a number based on the staff:
- A = 91.25
- B+ = 88.75
- B = 81.25
- C+ = 78.75
New businesses launching at ‘breakneck’ pace so far in 2022, says NC Secretary of State