Writer: Eleana Teran
2 min read June 2023 — In recent years, the entrepreneurial landscape in North Carolina has become more attractive for leaders wishing to start or grow their businesses. According to a study conducted by Simplify LLC., North Carolina ranks as the fifth least expensive state in the U.S. for initiating a business, making it the ideal ground for entrepreneurs.
Some of the key reasons that make the state an ideal place to launch a business is that the average income for state employees is slightly above $53,592 annually, with a corporate income tax rate of a mere 2.5%. Moreover, the filing cost for a new LLC is a reasonable $125. In the aftermath of the COVID-19 pandemic, the nation has seen a significant surge in the formation of new businesses. North Carolina witnessed a remarkable growth of more than 70% since 2019 with 178,300 businesses created in 2021, and another 174,400 in 2022.
“North Carolina has approximately 950,000 small businesses, so we remain very committed to that ecosystem through a myriad of programs,” Adrienne Cole, president and CEO of the Greater Raleigh Chamber of Commerce, told Invest: in an interview last year. She lamented on maintaining this community, saying, “We are also collaborating with higher-education institutions to build a talented workforce pipeline and keep that talent here.”
North Carolina also stands out due to the wealth of easily accessible resources designed to foster entrepreneurship. There are multiple small business centers at community colleges, the statewide Small Business and Technology Development Center (SBTDC), mentoring opportunities, SCORE and the Women’s Business Institute, among other provisions.
In a previous interview with Invest:, Elaine O’ Neal, mayor for the City of Durham, remarked on the importance of these resources and partnerships in cultivating growth in the business community. “I have been involved in developing the next generation of employees and business owners. Durham Technical Community College, North Carolina Central University and Duke University are great partners to the city of Durham. We have key educational institutions partnering with us in different arenas to ensure our people are reaping the benefits of living in Research Triangle Park.”
As a result, the state has not only managed to create a business-friendly environment but also established itself as a promising land for small businesses, which according to the U.S. Small Business Administration make up 99.9% of American Businesses and employ 61.7 million people. According to a study conducted by Lendio.com, North Carolina ranks fifth among the best states for small businesses in 2023, primarily because of its low corporate tax rate of 3% and easy access to business loans. A significant migration into North Carolina, has made it a vibrant marketplace, while the affordable housing costs further enhance its attractiveness for entrepreneurs.
This rapid growth has propelled North Carolina into the top 10 states for venture capital funding in recent years.
A strategic location with favorable conditions can provide an essential boost, and North Carolina, with its low business setup costs, rich resources, and vibrant, growing economy, offers exactly that.
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