RESEARCH TRIANGLE PARK – A new study ranks Raleigh No. 1 and Charlotte No. 2 as the best cities across the U.S. to launch an online business.
The report – from Business CenturyLink.com – considered a variety of criteria ranging from taxes to quality of life, internet access and business environment.
A recent report from the N.C. State Treasurers Office recently reported that the launching of new businesses across North Carolina is setting a torrid pace.
Here’s a look at the CenturyLink report and what it had to say about the top 10 cities:
1. Raleigh, NC
Raleigh is part of North Carolina’s Research Triangle, a region located in the center of NC. According to their website, the Research Triangle is described as a “… region that is home to some of the fastest-growing companies and communities in the world.”
2. Charlotte, NC
Charlotte is known as “The Banking Capital” as it is the home of Bank of America HQ and the Wells Fargo East Coast Division, and is recognized by the number of fintech companies headquartered in the city.
3. Austin, TX
Austin has a population of 1,028,225. It is the 4th largest city in Texas, the 10th largest city in the US, and it’s known for the slogan “Keep Austin Weird”.
4. Seattle, WA
Seattle was named the #1 Best City for Business for two consecutive years (2018 and 2019) by Forbes magazine. The city is home to two of the wealthiest people on earth, Amazon founder Jeff Bezos and Microsoft co-founder Bill Gates.
5. San Antonio, TX
Texas has one of the friendliest tax environments in the US and doesn’t have a personal or corporate income tax. Some of the best companies located in San Antonio are H-E-B, Prologis, ServiceNow, Frost Bank, and Pearson.
6. Richmond, VA
According to Forbes magazine, Richmond’s economy is primarily driven by law, finance, and government, with federal, state, and local agencies located in the downtown area. Richmond was ranked #9 on the Quality of Life Index.
7. Dallas, TX
In 2019, Forbes magazine ranked the city #2 for Best Places for Business and Careers and in 2020 as one of the best places to retire. Some of the best companies in Dallas are AT&T, Frito-Lay, and Texas Instruments.
8. Jacksonville, FL
Jacksonville, Florida has a population of 939,717. It’s the largest city in Florida and the 14th largest city in the US As a whole, Florida ranks #4 in the Tax Climate Index.
9. Madison, WI
Madison, WI ranks #6 on the quality of life index. Wisconsin received a grade of A- in the 2020 Digital States Survey. The population of the city is 265,158, it’s the 2nd largest city in Wisconsin and the 86th largest city in the US
10. Oklahoma City, OK
The 2022 Tax Foundation released that three bills were signed in May 2022 to reduce Oklahoma’s individual and corporate income tax rates. The tax bracket will lower by 0.25 percent points. The corporate income tax will also be reduced from 6% to 4%.
Criteria for the report
Here are the data points used in compiling the report:
Quality of Life Index – the list contains 53 cities with the highest quality of life index from the Quality of Life in the United States report. (Data last collected on April 19th, 2022 and changes periodically). This variable is based on an average from the following variables: Purchasing Power Index, Safety Index, Healthcare Index, Cost of Living Index, Property Price to Income Ratio, Traffic Commute Time Index, Pollution Index, and Climate Index.
Tax Rank – this variable was determined based on the rank provided by the Tax Foundation. The data includes 50 states and is based on the 2022 State Business Tax Climate Index Ranks and Component Ranks. To get the overall rank, the following were used: Corporate Tax Rank, Individual Income Tax Rank, Sales Tax Rank, Property Tax Rank, and Unemployment Insurance Tax Rank.
Economy Ranking – a US News data set provides the data for this variable. They measured states’ economic stability and potential based on the following variables: Business environment, employment, and growth.
Average speed and Broadband – this dataset contains 50 US states listed within the ‘Average Internet Speed by State 2022’ from World Population Review. Internet Speed is important because it measures how much data and information can be transferred over the web in a single connection. Bandwidth measures the number of frequencies that a network connection can handle.
Government Tech Grade – a variable that was created based on the Government Technology biennial survey ‘Digital States Survey 2020’. This survey evaluates states’ use of technology to improve service delivery, increase capacity, streamline operations, reach policy goals and assign each state a grade based on quantified results. The results are based on a grading system, and for this, piece we had to give the grades a number based on the Grading System:
- A = 95
- A- = 91.25
- B+ = 88.75
- B = 85
- B- = 81.25
- C+ = 78.75
- C = 75