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The Best States for Millennial Business Owners in 2026
As a millennial entrepreneur, choosing the right location to launch or grow your business is crucial. With the evolving economic landscape and shifting workforce dynamics, certain states have emerged as ideal havens for millennial business owners. This article explores the best states in 2026 that offer favorable conditions for young entrepreneurs.
In light of ongoing stereotypes about millennials, we aim to highlight the best locations where you can thrive as a business owner. These states boast low LLC fees, competitive corporate tax rates, and a significant presence of millennials with degrees, alongside relatively low student loan debt. Let’s dive into the best states for millennial business ownership.
The Best States for Millennial Business Owners
Whether you’re launching your first startup or expanding an existing venture, consider these states for their supportive environments. Lower fees and student debt mean more capital to invest in your business. If these states don’t meet your needs, we’ve compiled an extensive list detailing what each state offers millennial business owners below.
How We Determined This
Our ranking is based on five key factors:
- LLC Filing Fee
- LLC Annual Fee
- Corporate Tax Rank
- Percentage of Millennials with Bachelor’s Degrees
- Average Student Loan Debt
To evaluate the financial implications of starting a business, we sourced data on LLC filing and annual fees from LLC University. The national average annual LLC fee is approximately $91, but it varies significantly across states.
Next, we assessed the business climate through corporate tax rates. Additionally, we considered personal factors that can impact entrepreneurial success, such as educational attainment among millennials. Data from the American Community Survey (ACS) reveals that education not only equips individuals with necessary skills but also enhances their understanding of management and finance, both crucial for business success.
Lastly, we examined average student loan debt statistics from the Department of Education. A solid educational background can be beneficial, but excessive debt may hinder your ability to secure loans or maintain financial stability during the early stages of entrepreneurship.
1. Missouri
LLC Filing Fee: $50
LLC Annual Fee: $0
Bachelor’s Degree Percentage: 35.5%
Average Student Loan Debt: $33,310
Missouri stands out for its minimal LLC fees—only a $50 filing fee, with no annual fees. This financial advantage secures its position as the top state 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 also offers an attractive combination of low filing fees and a manageable annual fee of $10. With a high percentage of millennials holding degrees, the state fosters a knowledgeable workforce ideal for business growth.
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’s zero annual fee and lower average student loan debt contribute to its high ranking, making it an appealing option for millennial entrepreneurs.
4. Utah
LLC Filing Fee: $70
LLC Annual Fee: $20
Bachelor’s Degree Percentage: 35.0%
Average Student Loan Debt: $28,523
Utah ranks fourth, with reasonable LLC fees that allow entrepreneurs to invest more in their business rather than administrative expenses. The state’s educational attainment is supportive of business initiatives.
5. Montana
LLC Filing Fee: $70
LLC Annual Fee: $20
Bachelor’s Degree Percentage: 37.5%
Average Student Loan Debt: $29,930
Montana provides a low-cost environment for LLCs, with a modest filing fee and annual dues. Its high percentage of college graduates further supports its ranking.
6. Arizona
LLC Filing Fee: $50
LLC Annual Fee: $0
Bachelor’s Degree Percentage: 28.2%
Average Student Loan Debt: $31,824
Arizona’s combination of a low filing fee with no annual charge positions it well for millennial entrepreneurs, alongside a solid educational base among its residents.
7. Wyoming
LLC Filing Fee: $100
LLC Annual Fee: $50
Bachelor’s Degree Percentage: 26.4%
Average Student Loan Debt: $26,374
Wyoming’s student loan debt is the lowest nationally, making it an attractive state for budding entrepreneurs who want to minimize financial burdens.
8. Hawaii
LLC Filing Fee: $50
LLC Annual Fee: $15
Bachelor’s Degree Percentage: 33.3%
Average Student Loan Debt: $32,039
With a low filing fee and annual fees, Hawaii presents a unique combination of low costs and a supportive community for millennial entrepreneurs.
9. Idaho
LLC Filing Fee: $100
LLC Annual Fee: $0
Bachelor’s Degree Percentage: 27.5%
Average Student Loan Debt: $28,205
Idaho offers a favorable environment for business with no annual LLC fee and accessible educational opportunities for millennials.
10. Mississippi
LLC Filing Fee: $50
LLC Annual Fee: $0
Bachelor’s Degree Percentage: 22.8%
Average Student Loan Debt: $33,261
Mississippi ranks tenth, benefiting from low LLC fees and a manageable level of student debt, making it easier for millennials to start their ventures.
Millennials Face Unique Challenges
Despite the challenges often associated with being a millennial, including rising living costs and student debt, there are numerous opportunities for young entrepreneurs. It’s essential to recognize the states that foster growth and innovation for this demographic.
We’ve not only outlined the best states for millennial business owners to flourish but also identified those that present more significant challenges. Explore the comprehensive list below to find out more about which states support or hinder millennial entrepreneurship.
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.
