North Carolina is one of the best states in the United States for business, according to a recent CNBC ranking. In a study conducted by WalletHub, North Carolina was rated ninth out of all fifty states based on 28 different indicators important to startup success. The study comes after another report recently ranked Durham as the No. 1 city for startups.
The number of new businesses across the state is at an all-time high, and North Carolina ranked 11th in labor costs, 12th in average working week duration, and 25th in industry variety. Texas, Georgia, California, Florida, Idaho, Utah and Colorado were the seven states ranked higher than North Carolina. True corporate tax rates are important considerations when a state's goal is to attract an existing company to move to a new location. However, data from the National Small Business Association estimates that 35% of small businesses are LLCs and another 33% are S corporations.
Charlotte is the second largest banking center in the country, thanks to Bank of America and Truist being headquartered in Queen City. The CNBC study found that North Carolina's credit rating is flawless, had economic growth of 6.7% last year, and had one of the strongest job growth rates in the country, at 3.6%. Starting a business in North Carolina is not difficult in terms of required management and compliance with state regulatory requirements. North Carolina is home to some of the world's leading companies and brands, including Bank of America, Lowe's Companies, Hanesbrands, Quintiles Transnational Corp, Compass Group, Total, Duke Energy, PRA Health Sciences, Duke University, BB&T and Carlisle Companies.
North Carolina institutions are also among the top recipients of research funding from the National Science Foundation and the National Institutes of Health. In conclusion, North Carolina has a lot to offer entrepreneurs who have the flexibility to consider starting a new business across multiple geographies. This year marks North Carolina's first time at the top of the list with CNBC praising state legislators for being able to set aside political differences to boost the economy. House Speaker Tim Moore said North Carolina was able to land Apple's first East Coast center because leaders with different perspectives and points of view worked together.
CNBC is describing more of North Carolina's competitive advantages as well as opportunities for improvement. North Carolina taxes generally relax as the state seems eager to promote both small and large businesses.