BALTIMORE, MD—With around 1 in 5 new businesses failing within the first year and inflation making things even more difficult, the personal-finance website WalletHub this week released its report on the Best & Worst States to Start a Business in 2025 to help people maximize their chances of success by starting in the right location.

WalletHub compared the 50 U.S. states across 25 key indicators of startup success. The data set ranges from financing accessibility to labor costs to office-space affordability.

Maryland came in near the bottom of the list, at No. 46 out of 50 states.  Florida topped the list with Georgia coming in at No. 2.

Starting a Business in Maryland (1=Best; 25=Avg.):

• Overall Rank for Maryland: 46^th
• 29^th – Avg. Growth in Number of Small Businesses
• 46^th – Office-Space Affordability
• 50^th – Labor Costs
• 37^th – Availability of Human Capital
• 24^th – Avg. Length of Work Week (in Hours)
• 45^th – Cost of Living
• 49^th – Industry Variety

“Around half of all new businesses don’t survive five years, so the idea of becoming a business owner can be daunting, especially with the current high cost of living,” said WalletHub analyst Chip Lupo. “That’s why it’s crucial to establish your business in a state that will maximize your chances of success. The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate. On top of that, you’ll need to make sure you start in a place with an engaged customer base, if you’re operating locally.”

“Florida is the best state for starting a business in 2025, boasting the second-most startups per capita and the highest percentage of adults who engage in entrepreneurship,” Lupo added. “The number of small businesses in the state grew by nearly 16% between 2016 and 2022, the fourth-highest percentage in the country. There are plenty of good reasons why so many people start businesses in Florida, including the fact that it has the 11th-highest business revenue growth rate and the tenth-lowest corporate taxes. In addition, Florida’s working-age population (age 16-64) is growing faster than in all but six other states, and the state has the third-highest percentage of workers who say they are enthusiastic about and committed to their work.”

The full list can be viewed online here at WalletHub.

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