5 Best States to Open Your Second Business Location

Your business is performing well enough to open a second location. That’s fantastic! Some states are better than others for starting and growing businesses, so think twice about where you want to locate your second opportunity.

Cost of living, employee pools, and business resources should influence your decision, so you are well supported in your endeavor. Of course, sticking to your home state so your locations can share resources, knowledge, and local word of mouth advertising may be the right thing, no matter what statistics say. That’s a business decision for you to make.

Here’s a list of the five best states in which to start and grow your business based on economic and business factors.


Texas tops many lists because of its low cost of living. It’s cost-effective to own and operate a business in Texas, and there are a wealth of opportunities for many different types of businesses including agriculture, energy, and technology.

Because of the size of the state, it provides access to many economic centers without crossing state lines. Businesses don’t have to worry about differing state taxes and other regulations. It’s perfect for growth because you can take advantage of major hubs with lots of activity and traffic while staying in the state.

Texas is a favorite for its low-income tax rates and, compared to other states, the regulations are relaxed and very friendly to companies trying to grow. A large employee pool makes it easy to find loyal workers by the dozens.


Surprisingly enough, this small (population) state tops many lists for its startup density. There are over ninety-three startups for each one thousand residents, which is insanely high, not to mention third in the nation.

Low energy prices also contribute to the ease with which you can grow. At twenty percent below the national average, Utah is affordable regarding energy consumption. You can dedicate the money you save to other growth initiatives.

High average education levels, available labor, and low-income tax rates provide a good supply of willing and educated workers. Dedicated employees who learn quickly can help manage your second location and be a huge asset to you as your business grows.

North Carolina

North Carolina has some of the best business survival rates. This is due to major cities in the research triangle comprised of Raleigh, Durham, and Chapel Hill, and the favorable state and corporate taxes.

Establish your second location here to take advantage of a state that boasts a high quality of life and a large supply of highly skilled laborers. Startups can attract employees and growing businesses can draw from developed business resources of all kinds.


North Carolina isn’t the only southern state with favorable tax rates and great business communities. Check out Georgia if you want high startup density like Utah, affordable living like Texas, and skilled labor like many other states in the south.

Small businesses grow and thrive in states with active metropolises like Atlanta, home to the world’s busiest passengers. With the airport, Coca-Cola, Home Depot, and UPS, business comes from all directions.

Business-friendly taxes like many other states on this list offer incentives for businesses to stay. However, the low wages may be a blessing or a curse. Saving money is great, and it makes offering competitive wages easy, but it can also mean less loyalty and higher turnover.

New Hampshire

Unfortunately, a poor startup score deters a lot of entrepreneurs from considering New Hampshire as an ideal second location. However, the tax climate is encouraging, and the quality of employees is above average.

There are other considerations to make when looking for a second location, and in spite of the poor startup score, many businesses choose to locate where people want to live. It increases the chances of establishing a loyal customer base, which is essential to any successful business. New Hampshire ranks number one in families who relocate to live a ‘richer’ life. Good school systems make New Hampshire a highly desirable place to live, and, therefore, operate a business.

There are advantages to any state, especially if you already live or work there. These states top the list, and if you’re looking to branch out, they’re great places to start. Manageable living costs, access to labor, and tax rates are among the most popular benefits.

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