These Are the Best States to Start a Business in 2024, According to a New Report It pays to be strategic when deciding where to launch your next venture.

Nearly two-thirds of Americans believe they have the requisite knowledge and experience to start a business, according to an annual report on entrepreneurship from Babson College.

If you're one of the many eager to take the plunge into business ownership in 2024, there are a lot of factors to consider for success. But one of the very first and most important? That would be location.

It pays to be strategic about which state, city and neighborhood you opt to launch your venture, as it will determine the taxes, zoning laws and regulations that impact your business, per the U.S. Small Business Administration.

Related: Starting a Business: How to Start a Business in 12 Steps

Forbes Advisor looked at 18 key metrics across five categories — business costs, business climate, financial accessibility, economy and workforce — to find the best states to start a business in 2024.

Here are the top five, according to the report:

1. North Dakota

• It boasts a low business formation fee of $135.
• The state's business survival rate is a "healthy" 77%.
• It has a lower-than-national-average cost of living.

2. Indiana

• It has a business formation fee of just $100.
• It also reports a 77% business survival rate.
• The cost of living is below the U.S. average.

3. Arkansas

• It offers an "exceptionally low" business formation fee of $45.
• It has a strong business survival rate of 78%.
• It provides an average of $23,463 in funding for small businesses through grants and other programs.

4. South Dakota

• The state's business formation fee is $150.
• Its business survival rate sits at 74%.
• It offers an average of $32,477 for small businesses via grants and other programs.

5. North Carolina

• Its business formation fee is set at $125.
• Seventy-seven percent of businesses survive in the state.
• The cost of living is close to the national average.