California
Coming fifth, “California has the second-highest rate of new entrepreneurs, with 0.45 percent of the population starting a business. Startups in California create a large number of jobs, and their first-year survival rate is better than the national average. What’s more, the five-year survival rate of businesses is even better, with 53.2 percent of California new businesses founded in 2014 still in operation as of 2019, higher than 50.9 percent for the U.S. overall.
“California also dominates the study in terms of venture capital flows, with 2,869 companies receiving $26.9 billion in funding. The main drawback of California is its business tax climate, where it comes in as the 48th worst state in this category. California’s top marginal corporate income tax rate of 8.84 percent is one of the highest rates in the country.”
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