Massachusetts is the third most expensive state to start and run a business, according to a new report from San Francisco consulting firm Venture Smarter.
The Bay State is less expensive than only New York and Washington, per Venture Smarter.
Massachusetts has the second-highest weekly wage at $1,917, lower only than New York’s $2,015, according to data from the U.S. Bureau of Labor Statistics compiled by Venture Smarter. It is the most expensive state to renew an LLC filing, at $500, and has the ninth-highest corporate tax rate at 8%.
The firm analyzed eight metrics related to starting and running a business across each state, including their corporate tax rate, average commercial rent costs, LLC filing fees, and average weekly wage. The metrics were tallied and scored out of 100.
The Commonwealth is a more expensive place to start a business than California, though California’s average annual commercial rent per square foot cost of $32.99 beats out Massachusetts’ $25.53. Hawaii and New York also both top $30 per square foot.
The top 10 most expensive states for entrepreneurs, per Venture Smarter, are:
- New York
- Washington
- Massachusetts
- California
- Illinois
- New Jersey
- Connecticut
- Minnesota
- Texas
- Maryland
The firm gave Massachusetts a score of 71.29 out of 100 for expenses for entrepreneurs. New York scored 79.07; Mississippi, which came in as the least expensive, scored 11.87.
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