A new study found Maine is the No. 14 most expensive state to start a business in 2025.
From Simplify LLC:
An unprecedented 25.6 million Americans have started their own businesses over the last five years according to the Census Bureau’s Business Formation Statistics. Historically, about 20% of businesses fail within the first year, but startups in 2025 are facing a unique challenge with higher operating expenses following historic inflation. The economic landscape has changed across the country and choosing a location where wages, rent, utilities, and taxes are reasonable could mean the difference between success and failure.
Simplify LLC used the most recent data from the Bureau of Labor Statistics, Federal Reserve of St. Louis, Tax Foundation, Energy Information Administration, and others.
The rankings were determined by analyzing nine key factors such as taxes, business filing fees, commercial rent and utilities, labor costs, regulations, and small business lending.
Key Findings:
- No. 14 Maine: Maine has a $175 LLC fee (#44), below-average SBA lending of $6.1 million per 100,000 (#40) and a 7.17% corporate tax (#38 tied). The state also underperforms in labor force participation (60.2%, #38). However, commercial rent is $16 per square foot (#22), wages are $60,328 (#18) and electricity costs businesses $550.50 monthly (#12). This mix lands Maine at #38 overall.
- 10 Least Expensive: Utah, South Dakota, Colorado, Wyoming, Montana, Idaho, Nebraska, Kansas, Nevada, and North Dakota.
- 10 Most Expensive: California, New York, Hawaii, Tennessee, Massachusetts, Alabama, New Jersey, D.C. Illinois, and West Virginia.
Latest Local Central Maine News
