COLUMBUS, Ohio (WCMH) – Ohio is one of the best states to start a business in 2025, according to a recent study. 

Swoop Funding, a savings and financial advice organization, analyzed 11 factors — including office rental costs, sales tax rates, unemployment rates and business survival rates — to discover the best states in the country to start a business this year. Data was sourced from entities such as the Bureau of Labor Statistics and The Tax Foundation.  

Ohio is the second-best state to start a business, the study found. It has the cheapest office rent in the country at $14.82 per square foot, and 55% of businesses survive past five years, according to the analysis. 

Texas took the No. 1 spot, boasting the highest number of coworking spaces in the country, at 280. The Lone Star State also ranked first for business support quality and 53% of businesses survive past five years. Completing the top 10 was North Carolina, Mississippi, Florida, Wisconsin, Pennsylvania, Montana, Georgia and Tennessee. 

The study found the worst state to start a business in 2025 was Washington, which had a business survival rate of 41.10%, an average office rent cost of $25.15 per square foot and one of the highest sales tax rates in the country – 9.38%. Washington was followed by Hawaii, New York, New Jersey, Rhode Island, Massachusetts, Alaska, Nevada, Wyoming and Arizona. 

While 670,000 small businesses are launched each year, 21% fail within their first year and only 25% make it past the 15-year mark, according to Swoop Funding.