RAPID CITY, S.D. — New research from Northwest Registered Agent highlights South Dakota as one of the most affordable states in the country to start a business in 2025, thanks to its low taxes and minimal startup costs.
The Spokane, Washington-based business formation company ranked South Dakota second overall in its Top 10 Most Affordable States to Start a Business report, citing the state’s lack of personal and corporate income taxes and one of the lowest statewide sales taxes in the nation.
“Choosing the right state to launch can significantly impact a new business’s budget,” said Aigner Wilson, Senior Content Specialist at Northwest Registered Agent. “Our 2025 ranking helps founders spot hidden savings while tapping into states that are actively supporting entrepreneurs.”
Wyoming topped the list for its ultra-low startup fees and competitive tax structure, while Alaska, Florida, and Montana rounded out the top five. Other states recognized for business-friendly conditions include Nevada and Texas.
Northwest Registered Agent’s analysis considered filing costs, tax structures, and ongoing compliance requirements in each state. The report aims to help small business owners and entrepreneurs identify where they can stretch their startup dollars the furthest.
The full ranking and state-by-state breakdown are available at Top 10 States to Form Your Business (2025 Guide) on Northwest Registered Agent’s website.
