When starting a new small business, it can be tricky to figure out just how much cash you will need to get things off the ground as well as a plan to maintain the business long-term. According to the U.S. Small Business Administration, most microbusinesses cost around $3,000 to start, and home-based ventures cost somewhere between $2,000 and $5,000. The U.S. Bureau of Labor Statistics reports that over the last two decades, around 20% of new businesses failed within the first two years, but, on the contrary, 22% of businesses were still in operation 20 years after they began. It can be hard to pinpoint exactly why certain businesses fail, but according to analysis from Simplify, where the business is located can have an effect. They looked at each state as well as the District of Columbia and compared data about corporate income tax rates, LLC startup filing fees, average labor costs, worker availability, small business lending, and space and utility costs, among other factors. They determined the states where it is most expensive to start a business are Minnesota, New York, Louisiana, Alabama and Alaska. In the slideshow above, we'll look at the states Simplify found to be the least expensive places to begin a business venture.

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Brittney Meredith-Miller

Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].

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