Thinking of Starting a Business? North Dakota Won’t Break the Bank!

We all know that owning a business and working at one are two completely different things. As an owner, there are a ton of things to deal with. Payroll, taxes, rent, equipment, advertising. It just doesn't end. If you want to start your own business, you already have things moving your way because you live in North Dakota.

Simplify LLC recently published their 2024/2025 report, which analyzed the most and least expensive states for starting a business. As expected, North Dakota received a high ranking. Montana and South Dakota did even better.

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To help business owners make informed decisions, Simplify LLC analyzed nine business cost-related factors across four main categories in all 50 states and D.C.

• Basic Business Costs: corporate income tax rates and business filing fees.
• Labor Costs and Availability: Average annual income, labor force participation rate, and percentage of adults with at least a bachelor’s degree.
• Cost of Space and Utilities: average commercial electric bill and average commercial rent per square foot.
• Healthy Business Environment: Small business lending and the number of state regulations.
• Taxes and Basic Business Costs: Corporate income tax rates and business filing fees.

Top Ten Least Expensive States To Start a Business

• 10 - North Dakota
• 9 - Nevada
• 8 - Kansas
• 7 - Nebraska
• 6 - Idaho
• 5 - Montana
• 4 - Wyoming
• 3 - Colorado
• 2 - South Dakota
• 1 - Utah

Top Ten Most Expensive States To Start a Business

• 10 - West Virginia
• 9 - Illinois
• 8 - District of Columbia
• 7 - New Jersey
• 6 - Alabama
• 5 - Massachusetts
• 4 - Tennessee
• 3 - Hawaii
• 2 - New York
• 1 - California

So, if you’ve been dreaming of starting your own business, North Dakota is a great place to do it—without completely draining your bank account. While our neighbors in Montana and South Dakota might have us beat in affordability, we’re still among the best in the nation when it comes to keeping costs low. Whether you’re opening a coffee shop, launching a tech startup, or finally making that side hustle official, North Dakota gives you a solid financial foundation to get started. Now, all that’s left is to take the leap!