UTAH – The number of businesses in the state of Utah has increased by 8.40% from December 2021 to December 2022, according to a new study conducted by business consulting firm Venture Smarter.
According to the study, the amount of businesses throughout the state has increased from 126,644 establishments in December 2021 to 137,277 businesses in December 2022, an 8.4% increase in a year.
Utah’s 8.4% increase businesses is the tenth highest percentage increase in the country, sitting behind Georgia, Virginia, Arizona, Montana and Vermont (tie), Michigan, South Carolina, North Carolina, Colorado and Hawaii (tie), and Idaho.
Venture Smarter conducted the study by analyzing U.S. Bureau of Labor Statistics to discover the business growth rate in each state based on the number of establishments in December 2021 compared to December 2022.
A spokesperson from Venture Smarter commented on the findings, “With the key benefits of starting a business in the states mentioned, it will be fascinating to witness the business growth rate over time and see how many more entrepreneurs thrive with the available support.”
A possible explanation for the growth in number of Utah businesses may be attributed to a low corporate income tax rate of 4.85%, as well as an LLC filing fee of $54 with an additional charge of $18 every year.
Georgia has the highest percentage increase of new businesses, jumping from 350,189 establishments in December 2021 to 397,515 business establishments in December of 2022, a 13.5% increase. Corporate income tax is set at a reasonable rate of 5.75% in Georgia, with the state also offering job tax credit to reduce corporate tax liability for eligible businesses.
Virginia has the second highest percentage increase, with a business growth rate of 10.5% from December 2021 to December 2022. Arizona places third with a 10.4% increase, Montana and Vermont fourth with a tie at 10.2%, Michigan is fifth with an increase of 9.8%, followed by South Carolina at 9.6%, North Carolina at 9.2%, Colorado and Hawaii tied at 9.1%, Idaho at 8.9%, and Utah rounding out the top ten at 8.4%.
“Regardless of your state, it’s vital to research the fees you will be expected to pay as they can vary significantly across states – not to mention, there are many incentives to take advantage of if you are eligible that can make the process of starting a business smoother and cheaper,” a Venture Smarter spokesperson said.
Washington, which is at the other end of the spectrum, has the worst rate of business growth at -16.80%. In December 2021, the state had 284,440 establishments; in December 2022, that number fell by 47,644.
Washington was the only state to see a decline in the number of establishments.