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20 Most Business Friendly States in the US

In this article, we will take a look at the 20 most business friendly states in the US. If you want to skip our detailed analysis, you can go directly to 5 Most Business Friendly States in the US.

Why are Experts Fearing the Long Awaited Rate Cut

A decline in employment, delayed rate cuts, and an overall slowdown of the economy have impacted the business environment immensely. While rate cuts have been scheduled to go through next month, not all economists and investors are looking forward to it. On August 26, Reuters reported that while the economy is guided to have a soft landing, the narrative may not help US stocks in the future. Experts suggest that the market was looking forward to a rate cut announcement, which had investors on the go. However, now that rate cuts have been announced, the excitement of a cutting cycle may wear off. Historically, stocks perform well when a rate cut is announced after a period of strong economic growth, and not an economic slowdown, like we saw in the first half of 2024. Since 1970, the S&P 500 has grown by 18% on average after a rate cut in periods of economic growth. On the other hand, in recessionary years, the S&P 500 has only climbed 2% on average following a rate cut.

Business Environment in the US

The total number of business applications in July 2024 reached 420,000, down by 2.1% from June 2024. The retail trade industry recorded the highest number of business applications exceeding 73,000 in July. Projected business formations, on the other hand, for July were 28,110, down by 0.2% from June 2024.

That said, let’s take a look at Worth AI, an AI startup formed in Florida in 2023 disrupting the underwriting and legal industry. Worth AI streamlines financial underwriting using AI, provides real-time data on the market, enables risk modeling, provides detailed portfolio visibility, and engages in risk monitoring. The company has an all-in-one platform that helps companies leverage business credit tools. The company processed its latest round of seed funding on August 15 and is still in the works of listing a patent.

Using its proprietary AI, the company provides companies with an automated risk assessment and a unique business credit score, along with additional underwriting services. On April 5, Worth AI announced a partnership with Equifax. Under the agreement, Worth AI will leverage differentiated data provided by Equifax. The data will then be used to help small businesses gain access to capital and financial services.

READ ALSO 15 Trending AI Stocks on Latest Analyst Ratings and News and 11 Best AI Assistants in 2024.

Is MSFT the Most Important Company in the US Right Now?

Microsoft Corporation (NASDAQ:MSFT) is a renowned technology company known for its Office productivity suite. The company also specializes in cloud computing, gaming, and advertisement and is making significant leaps in artificial intelligence. In FY 2024, Microsoft Corporation (NASDAQ:MSFT) grew its revenue by 15% to reach $245 billion and cloud revenue exceeded $135 billion, up by 23% year-over-year. Azure and other cloud service segments were the top performers, growing revenue by 30% during the year.

The technology company owns multiple platforms backed by artificial intelligence including Microsoft Azure, Dynamics 365, Power platform, and Microsoft Cloud. Azure AI has more than 60,000 customers. These include leading names like H&R Block, Suzuki, Swiss Re, and Telstra. On the other hand, Microsoft Fabric, its AI data platform, has 14,000 paid customers including Accenture, Kroger, and Zeiss. Over 480,000 companies have used AI tools in Microsoft’s power platform, up by 45% from the previous quarter.

Microsoft Corporation (NASDAQ:MSFT) is also reducing its reliance on AI hardware companies in an attempt to produce efficient infrastructure systems for its AI products. Last year, the company introduced tailored AI chips capable of running general-purpose compute workloads on the Microsoft Cloud. Microsoft Corporation (NASDAQ:MSFT) is one of the first companies to fully transition to digitization, giving it the first mover advantage. Its proprietary technologies provide a roadmap for companies of all sizes to push their journey to innovation and AI.

While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Now that we have studied economic activity in the US, let’s take a look at the 20 most business friendly states in the US. You can also read our piece on the 10 best small cap AI stocks according to short sellers.

Tim Roberts Photography/Shutterstock.com

Our Methodology

To come up with the 20 most business friendly states in the US we first went through multiple similar rankings on the internet. We then sourced the state-wise corporate income tax rates from the Tax Foundation, the aggregate business applications for each state, for the year ended 2023, from the US Census Bureau, and the GDP per capita from the Bureau of Economic Analysis. We sorted the states with the lowest corporate tax rates, the highest number of business applications, and the highest GDP per capita and assigned them ranks corresponding to their number on each list. We then took the average of our metrics to come up with the Insider Monkey Score. Our list is in descending order of the average rank of the three metrics, referred to as the Insider Monkey Score on our list.

Note: While the District of Columbia is not a state, it was included in our rankings due to its size and political nature.

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20 Most Business Friendly States in the US

20. Massachusetts

Number of Business Applications (2023): 75,990

GDP per capita (2023): $82,889.81

Corporate Income Tax Rate (2024): 8%

Insider Monkey Score: 15.75

Massachusetts ranks 20th on our list of the most business friendly states in the US. Massachusetts logged almost 76,000 new business applications in 2023. The state boasts a GDP per capita of almost $83,000 and has a corporate income tax rate of 8% on all income levels.

19. Iowa

Number of Business Applications (2023): 33,079

GDP per capita (2023): $94,540.81

Corporate Income Tax Rate (2024): 7.1%

Insider Monkey Score: 15.75

Iowa is one of the best states to do business in, with an Insider Monkey score of 15.75. The state levies a corporate income tax rate of 5.5% for income between $0 and $100,000. For income above $100,000, the corporate tax rate is 7.1%.

18. Wyoming

Number of Business Applications (2023): 58,486

GDP per capita (2023): $70,778.43

Corporate Income Tax Rate (2024): N/A

Insider Monkey Score: 15.25

Wyoming ranks 18th on our list of the best states to do business in. Wyoming does not levy a corporate income tax or personal income tax. Therefore, companies in the state enjoy tax-free profits. Wyoming had more than 58,000 new business applications in 2023.

17. Wisconsin

Number of Business Applications (2023): 65,089

GDP per capita (2023): $90,185.45

Corporate Income Tax Rate (2024): 7.9%

Insider Monkey Score: 15.25

Wisconsin is one of the best states to do business in. Wisconsin levies a 7.9% corporate income tax rate on all income levels. The state had a GDP per capita of over $90,000 and logged more than 65,000 new business applications in 2023.

16. Ohio

Number of Business Applications (2023): 147,977

GDP per capita (2023): $57,449.61

Corporate Income Tax Rate (2024): N/A

Insider Monkey Score: 15

Ohio ranks 16th on our list of the most business friendly states in the US. While Ohio does not levy a corporate income tax rate, it does have a commercial activity tax, levied at 0.26% of an entity’s gross revenue.

15. Alabama

Number of Business Applications (2023): 71,457

GDP per capita (2023): $82,228.47

Corporate Income Tax Rate (2024): 6.5%

Insider Monkey Score: 14.25

Alabama has an Insider Monkey score of 14.25, making it one of the most business friendly states in the US. Alabama recorded $82,228 in GDP per capita in 2023. It has a corporate income tax rate of 6.5% on all income levels.

14. Virginia

Number of Business Applications (2023): 131,312

GDP per capita (2023): $75,270.11

Corporate Income Tax Rate (2024): 6%

Insider Monkey Score: 13

Virginia ranks 14th on our list of the best states to do business in, with an Insider Monkey score of 13. Virginia levies a corporate income tax rate of 6% on all income levels, as of January 1. Over 130,000 new business applications were filed in Virginia in 2023.

13. Texas

Number of Business Applications (2023): 498,821

GDP per capita (2023): $58,755.78

Corporate Income Tax Rate (2024): N/A

Insider Monkey Score: 13

Texas is one of the best states to do business in. Texas does not levy corporate income tax. While state income taxes are not levied, Texas does have a franchise tax, levied on a company’s margin for revenues exceeding $1.23 million.

12. Indiana

Number of Business Applications (2023): 93,199

GDP per capita (2023): $77,618.55

Corporate Income Tax Rate (2024): 4.9%

Insider Monkey Score: 12

Indiana ranks 12th on our list of the most business friendly states in the US, with an Insider Monkey score of 12. Indiana had more than 93,000 new business applications in 2023. The corporate income tax on all income levels is 4.9%, as of January 1.

11. Missouri

Number of Business Applications (2023): 89,287

GDP per capita (2023): $76,860.56

Corporate Income Tax Rate (2024): 4%

Insider Monkey Score: 11.50

Missouri has an Insider Monkey score of 11.5, contributing to its ranking on our list of the most business friendly states in the US. Missouri levies a corporate income tax rate of 4% on all income levels. The state has a GDP per capita of $77,000.

10. North Carolina

Number of Business Applications (2023): 169,948

GDP per capita (2023): $68,405.39

Corporate Income Tax Rate (2024): 2.5%

Insider Monkey Score: 11.25

North Carolina ranks 10th on our list of the most business friendly states in the US, with an Insider Monkey score of 11.25. North Carolina levies a corporate income tax rate of 2.5% on all income levels. The state had almost 170,000 new business applications in 2023.

9. Mississippi

Number of Business Applications (2023): 52,862

GDP per capita (2023): $109,970.79

Corporate Income Tax Rate (2024): 5%

Insider Monkey Score: 11

Mississippi has an Insider Monkey Score of 11, contributing to its ranking on our list of the most business friendly states in the US. The state levies a corporate income tax rate of 4% on income between $5,000 to $10,000. Income above $10,000 is subject to a 5% corporate income tax rate.

8. California

Number of Business Applications (2023): 557,464

GDP per capita (2023): $88,537.52

Corporate Income Tax Rate (2024): 8.84%

Insider Monkey Score: 10.75

California ranks eighth on our list of the most business friendly states in the United States. California had over 550,000 new business applications in 2023, the second highest among all states. The state logged almost $89,999 in GDP per capita in 2023.

7. Michigan

Number of Business Applications (2023): 147,744

GDP per capita (2023): $86,294.41

Corporate Income Tax Rate (2024): 6%

Insider Monkey Score: 9.5

Michigan ranks seventh on our list of the most business friendly states in the United States. The corporate income tax rate in Michigan is 6%, as of January 1. The state logged 147,000 new business applications in 2023.

6. New York

Number of Business Applications (2023): 312,441

GDP per capita (2023): $99,118.49

Corporate Income Tax Rate (2024): 7.25%

Insider Monkey Score: 7.5

New York is one of the best states to do business in, with an Insider Monkey score of 7.5. New York levies a 6.5% corporate income tax rate on income between $0 and $5 million. Income greater than $5 million constitutes a corporate income tax rate of 7.25%. Over 300,000 new business applications were filed in New York in 2023.

5. Nevada

Number of Business Applications (2023): 65,609

GDP per capita (2023): $104,816.19

Corporate Income Tax Rate (2024): N/A

Insider Monkey Score: 7.5

Nevada ranks fifth on our list of the most business friendly states in the US, with an Insider Monkey score of 7.5. Only business entities grossing over $4 million in revenue per annum are required to file a Commerce Tax Return in Nevada. The tax rate is decided based on the gross receipts of a business. There is no state-level corporate income tax in Nevada.

4. Washington

Number of Business Applications (2023): 97,311

GDP per capita (2023): $90,702.50

Corporate Income Tax Rate (2024): N/A

Insider Monkey Score: 6.5

Washington ranks fourth on our list of the most business friendly states in the US. The state of Washington does not have a personal or corporate income tax, however, business owners must pay a public utility tax. The public utility tax rate is determined using the gross receipts of a business. For example, a retail business may have to submit retail sales tax. Washington logged over $90,000 in GDP per capita in 2023.

3. Georgia

Number of Business Applications (2023): 277,588

GDP per capita (2023): $94,046.02

Corporate Income Tax Rate (2024): 5.75%

Insider Monkey Score: 5.75

Georgia is one of the best states in the US to start a business in, with an Insider Monkey score of 5.75. Georgia has a corporate income tax rate of 5.75% for all levels of income. Georgia has a GDP per capita of $94,000 and logged more than 275,000 new business applications in 2023.

2. Florida

Number of Business Applications (2023): 664,567

GDP per capita (2023): $91,814.08

Corporate Income Tax Rate (2024): 5.5%

Insider Monkey Score: 4.75 

With an Insider Monkey score of 4.75, Florida ranks second on our list of the most business friendly states in the US. Over 660,000 new business applications were filed in 2023, the highest among all states. The corporate income tax in Florida is 5.5%, as of January 1, for income earned above $50,000.

1. Colorado

Number of Business Applications (2023): 138,867

GDP per capita (2023): $257,442.13

Corporate Income Tax Rate (2024): 4.4%

Insider Monkey Score: 4.5

Colorado ranks first on our list of the most business friendly states in the United States. Colorado has a corporate income tax rate of 4.4% for all income levels. The state logged nearly 140,000 new business applications in 2023.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’

Disclosure: None. This article was originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

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This isn’t just about making money – it’s about being part of the future.

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Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!