Starting a moving business is fairly straightforward in terms of acquiring equipment and materials and hiring moving staff. It's also a business that centers around mobility, which gives you the option to start a business in any state in the nation and use it for your central location. Ensuring proper company registration in the chosen state is a crucial first step, as it establishes the legal framework for your operations and compliance.So, which state is the best for starting a moving business?
Picking a state to operate from can be a difficult decision to make as each has its advantages and disadvantages. Oftentimes, the benefits outweigh the negatives, but you have to determine which state has the criteria that suit your needs and goals. The following is a look at the top 10 states that are business-friendly and offer multiple advantages in terms of starting and running a moving business.
1. Texas
Texas is the most popular state in which to start a business due to its low tax burden, little in the way of regulatory burdens, and multiple major metro regions that are easily accessible. These and other factors make it easy to start a business and keep the doors open with an average five-year survival rate for new businesses. Texas not only has a favorable business environment, but it also has a population that's always on the move as people seek out new job opportunities with corporations that are also taking advantage of Texas business laws.
The state is home to a variety of industries that range from light to heavy, offering the opportunity to enter into moving equipment of all types. Alternatively, you can focus on moving households from one place to the next and be assured that you'll never run short of clients. Combine that with the fact that starting a business in Texas is relatively low cost, you'll find that Texas is a great place to start your moving business.
2. Georgia
The Peach State is home to major corporations, including Coca-Cola, United Parcel Service, and Delta Air Lines, and it is the headquarters of 19 Fortune 500 companies. The state offers various tax credits that help corporations reduce their tax liability, and it offers incentives to encourage the formation of new businesses.
The fact that Georgia is home to so many corporate headquarters means there's a strong demand for movers. People are constantly relocating to or leaving Atlanta and upgrading their homes as their careers advance. Starting a business in Georgia to move people's belongings from one place to the next has the potential to be profitable and offers room for growth.
3. California
California has a reputation for being an expensive state to live and work in, but the cost of entry is well worth paying because it's a great state for small businesses to thrive. Small businesses make up 99.8% of all the businesses in the state and employ almost half of the state's eligible workforce.
Moving companies are licensed by the Bureau of Household Goods and Services, which outlines the regulations under which a moving company can operate. That means complying with the rules laid out by the bureau in order to operate without issues. Ultimately, starting a moving business in California is worth the effort as it's a large state with a population that's always on the move.
4. New York
On the surface, the state of New York doesn't seem like it has the most friendly climate for starting a moving business. Yet it's one of the best states due to the fact it's home to New York City and other major metropolitan areas, all of which are in constant need of reliable movers for their residents. New York state is very small-business-friendly and encourages new businesses to get started with tax incentives, support for operations and growth, and many other programs that help a new business gain a foothold.
The state features an economic development service known as the Empire State Development (ESD). It offers services such as training for entrepreneurs, shows businesses how to take advantage of tax incentives, and provides operational support to help a business run more smoothly.
5. Arizona
Arizona was once considered a destination for retirees and the Grand Canyon, but its status as a location for a microchip fabrication facility is making it a desirable place for working-age people to live. That means more people are going to need moving services to and within the state. While the state isn't known for being a great place to start a business due to its lack of government support, it does feature a flat corporate tax of just under 7% and five brackets for personal income tax. The personal income tax brackets make it especially appealing to use an LLC as a corporate structure with its pass-through income structure.
6. Florida
Florida is one of the most attractive states in which to start a moving business due to the fact that it has no personal income tax. This means if you form an LLC or S-corporation, otherwise known as a pass-through entity, you'll pay a lot less in taxes on your profits. When taxes have to be paid, the corporate tax rate is 5.5% for a relatively low tax burden. The Sunshine State is also a popular moving destination for people of all ages who want to enjoy the experiences that the state has to offer.
7. Louisiana
Louisiana features a strong infrastructure and roadway access that makes it easy to move people around the state and even across countries. Its seaports offer the opportunity to deliver containers of personal belongings for overseas moves. The state government has dedicated itself to creating a business-friendly climate, and its economic development bureau features educational programs and public-private partnerships. It seeks to make it as easy as possible to establish a new business within the state.
8. Wisconsin
Wisconsin's state legislature has focused heavily on making it a business-friendly state that provides support to new businesses of all kinds. Like California, it's a state where small businesses make up 99% of all businesses operating in the state. It's a great place to start a moving business of any type due to its extensive highway system and demand for moving goods that range from homes to industrial equipment within its borders. There's also a lot of support from the state's economic development agency that new businesses are able to tap into for various types of support.
9. Nevada
The state of Nevada is a business-friendly state and doesn't levy business or personal taxes. If you form an LLC or other pass-through corporation, you only pay taxes on the profits at the federal level. The state government also provides strong business support through the Nevada Governor's Office of Economic Development. You'll get help with learning about opportunity zones that offer advantages for a moving company, small business programs that support new and emerging businesses, and tax incentives.
10. Indiana
There are many benefits to starting a business in Indiana. They range from the low cost of forming a corporation to a low cost of living that makes it easy for a business to get started and hire employees at fair wages. Indiana has a 77% survival rate for new businesses, and small businesses get an average of $25,000 in funding to help them get started and stay in operation. Something that's also noteworthy for starting a moving company is the fact that Indiana is home to a sizable Amish population. The Amish community frequently hires outside help to move households and goods, which means a steady supply of clients.
Starting a moving business in Indiana makes a lot of sense, especially in light of the fact that it's centrally located in the US. In fact, the state bills itself as the "Crossroads of America" due to its access to freeways and relatively short travel time to reach states in the east part of the US. A moving company can perform long-distance moves and return to home base in less time than in other Midwestern states.
Conclusion
All of these states feature strong business incentives and a healthy potential client base that can support the entry of a new moving company. Some are home to a variety of industries that also need moving services, offering room for expansion. Starting your business in one of these states comes with a high survival rate, access to vital funding, and the opportunity to get a business education that helps you command your moving business and make it successful.
