Self-employment sounds like a dream to so many people. Rather than being an employee working in a dingy office with a strict boss, sitting at a desk for 8 hours every day doing the same repetitive work, being self-employed allows you to be your own boss. This gives you much more freedom and flexibility in your life and means you won’t have to just live for the weekends anymore. Self-employment allows you to start up something that you’re passionate about and are interested in and you can choose your working hours to suit you and your business.
Some recent statistics from the census bureau revealed that in 2020 alone there were more than 3 million new small business applications as the idea of being self-employed is becoming more and more appealing. One really important thing to think about when you’re deciding to start up your own business is where to set it up, each state has vastly different laws and benefits around small businesses so it’s important to look at these to give your business the best chance of thriving, but you should also make sure it’s somewhere you’d want to live. Iowa is one of the best states in the US to set up a small business, keep on reading to find out why.
Iowa is a very underrated state, it never makes the top of the list for places for tourists to visit in the US but it is rated highly when it comes to living there. It is a fantastic state that has a lot going on it. The cost of living in Iowa is one of the lowest in all of the US, it’s around 10% lower than the national average in Des Moines, and in the lesser-known areas, it’s even lower than this. This makes Iowa a great place to move to as you’ll have much more disposable income as your expenses will be much lower allowing you to do more stuff. It’s not only living costs that are lower but house prices are also historically low, Iowa has the 2nd cheapest housing out of all the US states.
If you have a family and you want to move to start up a business, one big concern you may have is how it will affect your child’s education. Iowa also thrives in this area, Iowa has outstanding results for education. The literacy rate in Iowa is at 99% which is the highest in all of the US and also the highest graduation rate at 90%. So moving to Iowa will likely improve the education that your child would receive. It is also the 6th safest state to live in, it has really low crime rates including the 2nd lowest murder rate so you can feel safe raising your child here.
Why it’s great for Small Businesses
Iowa is known for being a great place for small businesses to thrive, from a dumpster rental in Waterloo IA to construction businesses in Iowa City, whatever your idea for your small business it’s likely Iowa can accommodate you. There are over 260,000 small businesses currently located in Iowa and thanks to the laws in Iowa amongst other things they are all succeeding. There are some really essential factors to consider when deciding where to start up your small business to make it more likely that your new business venture will be a success.
The tax climate of the state you’re starting your business in can have a massive impact on how much profit you’re left with at the end of the tax year. States have different laws and tax rates, luckily if Iowa is appealing to you already it’ll become more appealing as they have a good tax climate for small businesses to operate in. Whether it’s income tax, insurance tax, or property tax, Iowa’s tax rates are favorable for small businesses.
Consumer spending is a massive factor as even if you had the best business idea in the world and offered affordable rates, if the people living in the area of your business don’t have much disposable income and don’t spend then you’re setting up your business in an area that’s likely to fail. Luckily for you if you’re planning on starting up your business in Iowa then you’ll be working in one of the states with the highest rate of consumer spending and the citizen in Iowa are a great bunch of people who pride themselves in supporting independent businesses.
Other factors that are worth looking into are labor costs to see how much wage expenses will be, business survival rate over a long period of time eg 5 or 10 years, and how climate change is affecting the area to see if it will affect your business. In some states, these could potentially be issues but in Iowa, they’re unlikely to affect your business.