North Carolina is the top state for business in America according to a report from CNBC. The report used 88 different metrics to rank states in 10 broad categories of competitiveness. Small business owners can feel confident knowing that North Carolina has a strong economy and is business-friendly. From its business climate, workforce, infrastructure, and cost of living – this is an ideal place to launch a small business.
There are also plenty of resources available to help entrepreneurs get started, such as business incubators and accelerators. Plus, North Carolina’s low taxes make it even more attractive for budding businesses looking to make their mark. With so many advantages working in its favor, it’s no surprise why North Carolina ranks number one on the list of America’s Top States for Business in 2022.
North Carolina’s Business Climate
North Carolina may be the perfect place for entrepreneurs ready to start a new business. According to CNBC’s report on America’s Top States for Business, North Carolina has been ranked number one due to its strong economy and business-friendly environment. From its business climate, workforce, infrastructure, cost of living, and more, North Carolina is the ideal place for entrepreneurs to launch their businesses.
North Carolina has experienced an unprecedented surge of small businesses over the last two years. The state’s Secretary of State office reported that in the first six months of 2022, business launches had already hit 93,000 – outperforming even its previous record-breaking pace from 2021 when 96,000 new companies were formed!
The business boom can be attributed to North Carolina’s business-friendly environment. The state boasts a vibrant business climate, with zero corporate income tax, low business formation fees and costs, and generous incentives for entrepreneurs. Additionally, the cost of living in North Carolina is one of the most attractive in the nation. In fact, most cities have a cost of living index that is below the national average making North Carolina an attractive option for those looking to start their own business.
North Carolina is home to over 500,000 business establishments and the state’s economy has grown each year. The business climate in North Carolina offers entrepreneurs a variety of benefits such as low taxes, advantageous regulations, skilled labor, business incentives, and more. This makes it an ideal place to open a business due to its lack of hurdles and paperwork that can slow down businesses in other states.
Workforce and Infrastructure
In addition to its business advantages, North Carolina boasts a highly educated workforce with access to some of the best universities in the country. With world-class research centers located throughout the state, business owners have access to cutting-edge technology, innovation, and business resources.
North Carolina also has an established infrastructure with a business-friendly transportation system for entrepreneurs to transport goods quickly and efficiently. The cost of living in North Carolina is also one of the lowest in the nation — making it attractive for business owners looking to reduce overhead costs.
Recently, Governor Roy Cooper of North Carolina proudly announced that the state had exceeded its record for new jobs created in 2021 by more than 4,000. 2022 saw a total of 28,690 fresh jobs generated from 182 recruitments and expansions within the state or through rural development projects. This monumental achievement is indicative of North Carolina’s hard-working spirit!
The NC Department of Commerce has reported that the new workforce expansion generated an astonishing $19.3 billion in capital investment, breaking 2021’s record of $10 billion! What is even more impressive? 66% of those economic development projects chose to locate or expand into rural areas.
“North Carolina continues to be the best place for people to live, learn, work and raise a family, and these economic development results show companies recognize our appeal as a business location,” said Governor Roy Cooper. “We’re building a stronger economy that works for everyone and I am excited about North Carolina’s future.”
Cost of Living
The cost of living in North Carolina is generally lower than the national average and more affordable than in other states like California and New York. This has made it a great state for job growth due to the ability for businesses to move in and operate without paying too much in taxes or wages. The lower cost of living has also been attractive to potential employees since their wages can stretch further.
For example, Raleigh-Durham is one of the fastest-growing tech hubs in the country, largely due to the fact that the region’s cost of living is 11% below the national average while offering excellent employment opportunities. Similarly, Charlotte was recently named one of Forbes best places for business and careers, with a projected 30% job growth over seven years thanks to its favorable cost of living relative to other large cities such as Atlanta, Boston, and Washington D.C.
In addition to these major cities, many smaller towns across North Carolina have seen an influx of people because they offer similar economic advantages at a fraction of the cost. Consequently, businesses are flocking to these areas in order to take advantage of the low operating costs and attract new customers.
Overall, North Carolina’s low cost of living has been key in fueling job growth throughout its regions; it certainly looks like that trend will continue long into the future!
Resources for Small Business Owners
North Carolina offers a variety of resources for small businesses to help them start, grow, and succeed. The Small Business and Technology Development Center (SBTDC) is a statewide network of centers that provide counseling, training, and research services to small businesses. They offer a wide range of services including business plan development, financial analysis, and market research. Additionally, they provide assistance with government procurement and international trade.
The North Carolina Rural Center is another valuable resource for small businesses in the state. They provide a variety of services including business planning, technical assistance, and access to funding to help small businesses in rural areas start and grow. They also provide access to the North Carolina Small Business Credit Initiative, which can help small businesses secure the capital they need to start or expand.
North Carolina also has a number of organizations that focus on specific industries or groups of small businesses. For example, the North Carolina Biotechnology Center provides resources and support for businesses in the biotechnology and life sciences industries, while the North Carolina Military Business Center assists companies that are looking to do business with the military.
The state government also provides several financial resources available to small businesses. The Economic Development Partnership of North Carolina (EDPNC) offers various funding programs such as the Job Development Investment Grant (JDIG) which provide cash grants to companies that are creating jobs in the state. The One North Carolina Fund provides financial assistance to companies that are expanding or relocating to the state.
In addition, the Small Business Administration (SBA) also provides support and resources to small businesses in North Carolina through its local offices. The SBA offers loan programs, counseling services, and other resources to help small businesses start, grow, and succeed. There are also many local and regional Chambers of Commerce and Business Incubators that can be valuable resources for small business owners.
North Carolina has many successful business accelerators and incubators designed to help startup businesses. These programs offer business advice, office space, and access to potential business partners as well as investors.
Low Tax Rates
North Carolina’s corporate income tax rates are considered to be favorable for promoting business growth in the state. The state has a relatively low corporate income tax rate of 3% for most companies, which can help businesses keep more of their profits to invest in growth and expansion. Additionally, the state does not have a sales tax on manufacturing and research and development equipment, which can be a significant cost-saving for businesses in those industries.
North Carolina also has a number of tax incentives and credits that are designed to encourage business growth and development. For example, the state offers a Job Development Investment Grant (JDIG) program, which provides cash grants to companies that create jobs in the state. The state also offers a One North Carolina Fund, which provides financial assistance to companies that are expanding or relocating to the state.
The state also offers a number of tax credits for businesses that invest in certain activities such as research and development, renewable energy, and historic preservation. These credits can help offset the cost of these investments and make them more attractive for businesses. Additionally, the state’s enterprise zone program provides tax incentives for businesses that locate or expand in economically distressed areas of the state.
North Carolina also has a relatively simple and streamlined tax system, which can help businesses save time and money on compliance and filing. For example, the state has a single sales factor apportionment formula, which simplifies the process of determining a business’s income tax liability.
North Carolina’s business taxes are favorable for promoting business growth in the state, with low corporate income tax rates and a variety of tax incentives and credits. This can make it more attractive for businesses to start, grow and expand in the state, which can lead to increased economic activity and job opportunities. The state’s favorable tax environment can be a powerful tool to attract and retain businesses, and help them to be more competitive.
Conclusion
Through its business-friendly tax environment, supportive workforce initiatives, high-quality infrastructure, and low cost of living, North Carolina is an ideal place for small business owners to start and grow their businesses. The state offers a variety of resources to help business owners succeed, including grants and incentives, tax credits, and enterprise zones.
Even with these advantages, the state’s business climate remains competitive due to its low corporate income taxes and streamlined filing regulations. These factors make North Carolina one of the best states in America for business in 2022. If you’re considering starting or expanding a business in the US this year, North Carolina should definitely be at the top of your list.
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