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When it comes to owning your own business, there are a lot of factors to consider especially when you’re a millennial.
When it comes to being the most popular (and unpopular) generation yet, there are some places you might want to avoid if you’re trying to start your own business.
Since there are already enough negative stereotypes going against millennials, we wanted to help. So we found the best states for millennial business owners.
These states offer low LLC fees and corporate tax, as well as high percentages of millennials living there with Bachelor’s Degrees. On top of that, the average student loan debt in these states is lower than anywhere else in the U.S.
The Best States for Millennial Business Owners
So whether you’re just starting out or you’re trying to grow your business, we think it might be helpful for you to take these locations into consideration.
After all, the less you have to pay in fees and student debt, the more you’ll have for your actual business. If none of these states fit your bill, we have a full list of what every state offers millennial business owners below.
How We Determined This
We ranked each state in five areas:
- LLC Filing Fee
- LLC Annual Fee
- Corporate Tax Rank
- Percent Of Millennials With Bachelor’s Degree
- Average Student Loan Debt
First, using data from LLC University we examined the most basic, financial costs of opening a business- LLC filing fee and the annual LLC fees. On average the annual LLC fee is $91. However, the fee is steeper in some states, and cheaper in others.
After that, we looked at the tax climate, by bringing in the corporate tax rate.
Finally, we looked at more personal factors. Success doesn’t happen in a vacuum. Education and personal financial health can contribute to what position an individual is in to start a business in the first place.
For this, we looked at the percent of millennials with a bachelor’s degree from the ACS. Not only can an education give you specialized skills to market, but it can also provide you with knowledge on management, finance, and other areas needed for a business to thrive.
From there, we examined average student loan debt from the Department of Education. Education can provide a great foundation for your business, but if excessive debt prevents you from having the financial liquidity to get loans or live on a smaller paycheck while you get started, it can prevent you from getting started.
1. Missouri
LLC Filing Fee: $50
LLC Annual Fee: $0
Bachelor’s Degree Percentage: 35.5%
Average Student Loan Debt: $33,310
When it comes to LLC fees, Missouri is all over it. In fact, the only fee you’ll be paying is the $50 filing fee. After that, you won’t have to waste a dime on anymore annoying LLC fees, which is why Missouri is ranked No. 1 for millennial business owners.
2. Colorado
LLC Filing Fee: $50
LLC Annual Fee: $10
Bachelor’s Degree Percentage: 44.4%
Average Student Loan Debt: $33,439
Colorado is a great place for millennial business owners as it has the same low filing fee as the No. 1 spot. The $10 LLC annual fee is nothing to scoff at and offers the fourth-highest Bachelor’s Degree percentage at 44.4%. In this case, the more fours the better!
3. New Mexico
LLC Filing Fee: $50
LLC Annual Fee: $0
Bachelor’s Degree Percentage: 24.1%
Average Student Loan Debt: $28,439
New Mexico is another state that offers a $0 LLC annual fee, which is part of the reason why it’s the third best state for millennial business owners. Another reason for the state’s high ranking is that it offers the fourth-lowest average student loan debt at $28,439.
4. Utah
LLC Filing Fee: $70
LLC Annual Fee: $20
Bachelor’s Degree Percentage: 35.0%
Average Student Loan Debt: $28,523
The fourth-best state for millennial business owners is Utah. With it’s $70 LLC filing fee and $20 annual fee, you can focus on spending your money building up your business rather than on annoying bills. Plus, with the average student loan debt at $28,523, you won’t have any issue saving up for your business!
5. Montana
LLC Filing Fee: $70
LLC Annual Fee: $20
Bachelor’s Degree Percentage: 37.5%
Average Student Loan Debt: $29,930
Montana is another great option if you’re wanting to keep your bills down. As far as LLC goes, the most you’ll ever pay will be $70 and that’s a one-time payment. Otherwise, you only have to fork up $20 a year. The student loan debt is low here as well at $29,930.
6. Arizona
LLC Filing Fee: $50
LLC Annual Fee: $0
Bachelor’s Degree Percentage: 28.2%
Average Student Loan Debt: $31,824
Arizona comes in at No. 6 for millennial business owners. The state offers a $50 fee to file as an LLC, and then that’s it. No annual fee. And with 28.2% of millennials with a Bachelor’s Degree here, you’re sure to succeed with your business.
7. Wyoming
LLC Filing Fee: $100
LLC Annual Fee: $50
Bachelor’s Degree Percentage: 26.4%
Average Student Loan Debt: $26,374
The seventh-best state for millennial business owners is Wyoming. The best part of being a millennial here is that the average student loan debt is only $26,374. That’s the lowest in the nation!
8. Hawaii
LLC Filing Fee: $50
LLC Annual Fee: $15
Bachelor’s Degree Percentage: 33.3%
Average Student Loan Debt: $32,039
Hawaii has a lot to offer in general, but for the sake of this list, it has a lot to offer millennial business owners. For one, the LLC filing fee is only $50. That’s the lowest it’s going to get. And the annual fee is only $15. That equals out to $1.25 each month. We wish our bills were that low!
9. Idaho
LLC Filing Fee: $100
LLC Annual Fee: $0
Bachelor’s Degree Percentage: 27.5%
Average Student Loan Debt: $28,205
At No. 9, Idaho can offer you success for your business. You’ll never have to worry about paying an annual LLC fee. And the state has the third-lowest average student loan debt at $28,205. Time to start a savings account.
10. Mississippi
LLC Filing Fee: $50
LLC Annual Fee: $0
Bachelor’s Degree Percentage: 22.8%
Average Student Loan Debt: $33,261
Rounding out the list is Mississippi. With the LLC fees and average student loan debt low, it’s safe to assume that millennial business owners will have an easy time setting up shop. It doesn’t get any better than paying only $50 (one time) to file as an LLC.
Millennial’s Have it Rough
Despite the negative connotations thrown at millennials, it’s no secret that they do have a harder time than other generations.
From the median income decreasing to crippling amounts of student debt, things just couldn’t be worse for millennials.
Luckily, we found the best states for millennial business owners to thrive. What’s more, is we also found the worst states for millennial business owners. Check out the list below.
The Best and Worst States for Millennial Business Owners
| Rank | State | Llc Filing Fee | Llc Annual Fee | Bachelor’S Degree Percentage | Average Student Loan Debt |
|---|---|---|---|---|---|
| 1 | Missouri | $50 | $0 | 35 | $33,310 |
| 2 | Colorado | $50 | $10 | 44 | $33,439 |
| 3 | New Mexico | $50 | $0 | 24 | $28,439 |
| 4 | Utah | $70 | $20 | 35 | $28,523 |
| 5 | Montana | $70 | $20 | 37 | $29,930 |
| 6 | Arizona | $50 | $0 | 28 | $31,824 |
| 7 | Wyoming | $100 | $50 | 26 | $26,374 |
| 8 | Hawaii | $50 | $15 | 33 | $32,039 |
| 9 | Idaho | $100 | $0 | 27 | $28,205 |
| 10 | Mississippi | $50 | $0 | 22 | $33,261 |
| 11 | Kentucky | $40 | $15 | 30 | $32,291 |
| 12 | Oklahoma | $100 | $25 | 25 | $28,645 |
| 13 | Indiana | $95 | $30 | 30 | $30,627 |
| 14 | Iowa | $50 | $45 | 36 | $29,315 |
| 15 | North Dakota | $135 | $50 | 33 | $28,173 |
| 15 | South Dakota | $150 | $50 | 35 | $31,034 |
| 17 | Nebraska | $105 | $10 | 39 | $31,995 |
| 18 | Michigan | $50 | $25 | 34 | $35,469 |
| 19 | South Carolina | $110 | $0 | 31 | $37,250 |
| 20 | Ohio | $99 | $0 | 34 | $33,301 |
| 20 | West Virginia | $100 | $25 | 24 | $31,486 |
| 22 | Virginia | $100 | $50 | 42 | $37,572 |
| 23 | Wisconsin | $130 | $25 | 37 | $31,210 |
| 24 | Minnesota | $155 | $0 | 43 | $32,322 |
| 25 | New York | $200 | $9 | 47 | $38,735 |
| 26 | Georgia | $100 | $50 | 34 | $37,285 |
| 27 | Kansas | $160 | $50 | 37 | $30,238 |
| 27 | New Hampshire | $100 | $100 | 40 | $31,737 |
| 29 | Connecticut | $120 | $80 | 44 | $34,293 |
| 30 | Rhode Island | $150 | $50 | 42 | $32,341 |
| 31 | Arkansas | $45 | $150 | 25 | $31,157 |
| 31 | Texas | $300 | $0 | 32 | $30,240 |
| 33 | California | $70 | $820 | 38 | $34,449 |
| 34 | North Carolina | $125 | $200 | 35 | $36,246 |
| 35 | Vermont | $125 | $35 | 42 | $34,483 |
| 36 | Louisiana | $100 | $35 | 28 | $33,861 |
| 37 | Washington | $200 | $60 | 39 | $31,938 |
| 38 | Maryland | $100 | $300 | 43 | $39,484 |
| 39 | New Jersey | $125 | $75 | 47 | $35,011 |
| 40 | Florida | $125 | $139 | 31 | $35,709 |
| 41 | Oregon | $100 | $100 | 35 | $33,420 |
| 42 | Illinois | $150 | $75 | 43 | $37,471 |
| 42 | Maine | $175 | $85 | 35 | $32,087 |
| 44 | Alaska | $250 | $100 | 25 | $29,921 |
| 44 | Pennsylvania | $125 | $70 | 40 | $35,843 |
| 46 | Delaware | $90 | $300 | 32 | $34,257 |
| 47 | Massachusetts | $500 | $500 | 54 | $35,280 |
| 48 | Nevada | $425 | $350 | 24 | $30,036 |
| 48 | Tennessee | $300 | $300 | 33 | $34,284 |
| 50 | Alabama | $183 | $100 | 27 | $34,861 |
Author
Amanda Postma is a writer for the Zippia Career Advice blog with a focus on creating entertaining content to help you through your job search. She received her BA from the University Of Missouri-Columbia.
