INDIANAPOLIS, Ind. (WOWO) – A new national report places Indiana among the top 10 most affordable states to launch a business, highlighting its low startup costs, favorable tax climate, and strong entrepreneurial support network.
The study, released by Northwest Registered Agent, analyzed key factors that influence the cost of starting and maintaining a business across all 50 states. These included initial filing fees, annual report costs, corporate tax rates, and access to capital.
Indiana came in at #10 on the list, thanks in large part to its low state fees and a competitive corporate income tax rate of just 4.9%. The state also scored well in categories like access to small business resources, incubators, and funding options.
“Choosing the right state to start a business can significantly impact a company’s long-term financial health,” the report noted. “Indiana stands out for its affordability and supportive infrastructure for entrepreneurs.”
Low Costs, Big Opportunities
Indiana’s low cost of doing business has long been a selling point for the state’s economic development officials. Startup founders in Indiana can expect minimal fees for forming LLCs or corporations, and the state avoids burdensome regulatory red tape that often deters small business growth.
Additionally, organizations like Elevate Ventures, StartUp Indiana, and INvestEd provide mentoring, capital, and technical assistance to new and growing ventures.
Startup Ecosystem on the Rise
According to the Indiana Economic Development Corporation (IEDC), the Hoosier state saw a surge in small business applications during 2024, especially in sectors like tech, logistics, advanced manufacturing, and clean energy.
The presence of major research universities like Purdue, Indiana University, and Notre Dame continues to feed the state’s startup pipeline with talent and innovation.
Other Top States
Topping the list of most affordable states were Mississippi, South Dakota, and Wyoming, where business costs are among the lowest in the country. But Indiana’s 10th-place ranking puts it well ahead of states like California, New York, and Illinois, where business startup costs can be significantly higher.
Bottom Line: For entrepreneurs looking to stretch their startup dollars, Indiana offers a balance of affordability, business-friendly policies, and access to tools that support growth. As inflation and economic uncertainty continue to challenge new businesses, location matters more than ever — and Indiana is making a compelling case for itself.
