Most Incorporations by State 2023
If you are planning a business formation, you might ask which is the best US State to file your incorporation? This may or may not be the State with the most incorporations. Most people are unaware of which State has the most businesses formed.
In March 2023, the State with the most entities was Florida. It wasn't Delaware, New York, or Texas. While many believe that Delaware is the leading State to incorporate, this is incorrect. There's also good news if you are incorporating a company in California, as California is second for the most incorporations in 2023, while Texas came third.
There are several reasons why Florida led the nation in the number of business formations formed in March 2023. In this article, we look at the most incorporations by State in 2023 and why Florida is top of the list.
Florida is one of the few States without a State income tax which certainly contributes to the reason Florida leads the nation in incorporations. Florida is also a State with a large population that also contributes to Florida's status as number 1 for business formations in March 2023.
Diversity and Geography
Another reason Florida leads in the number of new business entities formed in March 2023 is they have a diverse population, with Miami, Florida having a large community of many different demographics. As the midpoint between Latin America and South America, Florida is considered the main stopping point between those areas.
Business Friendly State
While many States are business-friendly, the combination of no State income taxes, fewer regulations, and a large population all contributed to Florida being number one in business formations in March 2023. Here is the top ten list of most incorporations by State, based on the US census, March 2023.
- New York
- New Jersey
The common belief is that new businesses, especially incorporations, are formed in States like Delaware, Wyoming, and Nevada. Several separate publications list Delaware in the top four routinely and Wyoming or Nevada in the top ten.
They are considered tax shelters, have no income taxes, or in the case of Delaware, a Special Court set up specifically for corporations and have special corporations.
This list was compiled based on the US Census, March 2023 and it lists Florida as the state with the most incorporations. This is due to several factors, including taxation, population, diversity, location, and that it is a business-friendly state.
Are you planning a business formation? You can learn how to incorporate your business at Legal Stepz.