RESEARCH TRIANGLE PARK – A new study ranks Raleigh No. 1 and Charlotte No. 2 as the best cities in the entire US to launch an online business.
The report – from Business CenturyLink.com – takes into account a variety of criteria from taxes to quality of life, internet access and business environment.
A recent report from the NC State Treasurers Office recently reported that the launch of new businesses across North Carolina is setting a hot pace.
Here’s a look at the CenturyLink report and what it said about the top 10 cities:
1. Raleigh, NC
Raleigh is part of North Carolina’s Research Triangle, a region located in the center of 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
Charlotte is known as “The Banking Capital” as it is home to the Bank of America HQ and the Wells Fargo East Coast Division, and is recognized for the number of fintech companies headquartered in the city.
3. Austin, TX
Austin has a population of 1,028,225. It is the 4th largest city in Texas, the 10th largest city in the US, and is known for its slogan “Keep Austin Weird”.
4. Seattle, WA
Seattle has been named the #1 Best City for Business for two consecutive years (2018 and 2019) by Forbes magazine. The city is home to two of the world’s richest people, Amazon founder Jeff Bezos and Microsoft co-founder Bill Gates.
5. San Antonio, TX
Texas is one of the friendliest tax environments in the US and has no personal or corporate income tax. Some of the best companies located in San Antonio are 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 in the downtown area. Richmond is ranked #9 on the Quality of Life Index.
7. Dallas, TX
In 2019, Forbes magazine ranked the city #2 for Best Places for Business and Career 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 US Overall, Florida ranks #4 on the Tax Climate Index.
9. Madison, WI
Madison, WI ranks #6 on the quality of life index. Wisconsin received an A- grade in the 2020 Digital States Survey. The city’s population is 265,158, it is the 2nd largest city in Wisconsin and the 86th largest city in the US
10. Oklahoma City, OK
The 2022 Tax Foundation released three bills signed into law in May 2022 to reduce Oklahoma’s individual and corporate income tax. The tax bracket will decrease by 0.25 percentage points. The corporate income tax will also be reduced from 6% to 4%.
Criteria for the report
Here are the data points used to compile the report:
Quality of Life Index – contains the list of 53 cities with the highest quality of life index from the Quality of Life in the United States report. (Data last collected on April 19th, 2022 and subject to change from time to time). This variable is based on the average from the following variables: Purchasing Power Index, Safety Index, Healthcare Index, Cost of Living Index, Property Price to Income Ratio, Traffic Commute Time Index, Pollution Index, and Climate Index.
Tax Rank – this variable is determined based on the ranking provided by the Tax Foundation. The data includes the 50 states and is based on the 2022 State Business Tax Climate Index Ranks and Component Ranks. To obtain the overall ranking, the following were used: Corporate Tax Ranking, Individual Income Tax Ranking, Sales Tax Ranking, Property Tax Ranking, and Unemployment Insurance Tax Ranking.
Economy Rank – a US News data set provides data for this variable. They measured the stability and economic potential of the states based on the following variables: Business environment, employment, and growth.
Average speed and Broadband – this dataset contains the 50 US states listed within ‘Average Internet Speed by State 2022’ from World Population Review. Internet Speed is important because it measures how much data and information can be transferred over the web in one connection. Bandwidth measures the number of frequencies that a network connection can handle.
Government Tech Grade – a variable created based on the Government Technology biennial survey ‘Digital States Survey 2020′. This survey examines states’ use of technology to improve service delivery, increase capacity, streamline operations, meet policy goals and assign each state a grade based on the results. The results are based on a scoring system, and for this, we need to give the scores a number based on the Grading System:
- A = 95
- A- = 91.25
- B+ = 88.75
- B = 85
- B- = 81.25
- C+ = 78.75
- C = 75
New businesses launching at ‘frightening’ pace now in 2022, says NC Secretary of State