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Top States For Business In 2018: Starting A Solution Provider Company

Which states offer the most business opportunities, have an entrepreneurial culture or provide the most educated workforce for a solution provider startup? See how your state ranks in providing the resources needed—or hinders growth with taxes, regulations and other obstacles.

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No. 1: Florida (No. 1 in 2017)

Number Of Solution Provider 500 Companies: Nine

For the third year in a row Florida has captured the No. 1 spot in our Best States analysis.

The Sunshine State, as it was last year, was ranked No. 1 in taxes and regulations. The state's corporate income tax is a moderate 5.5 percent, its sales tax is 6.0 percent, unemployment insurance taxes are low and there is no individual income tax. For its overall tax burden Florida is No. 4 on the Tax Foundation's 2018 State Business Tax Climate Index.

Florida's other strength is its business climate/competitive environment, where it ranked No. 4 (compared with No. 2 in 2017). It's No. 2 in both the number of private sector firms and in the number of small and midsize companies that provide solution providers with potential customers. And it had the fourth largest state GDP in 2017—$984.1 billion.

Florida is No. 9 in entrepreneurship and innovation: The state is home to 31,835 tech business establishments (No. 3) and the state's tech employment ranks grew by 12,022 last year. And the state has relatively low labor and operating costs (No. 10).

The state, however, is No. 29 in workforce education and experience: 67.0 percent of the workforce doesn't have a four-year college degree. And the state is ranked No. 37 in personal cost of living/quality of life, given its rising housing and rental costs and its No. 41 rank in median household income ($51,176).

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