SETTING UP IN THE USA: THESE LITTLE-KNOWN CITIES FOR LAUNCHING YOUR BUSINESS

SETTING UP IN THE USA: THESE LITTLE-KNOWN CITIES FOR LAUNCHING YOUR BUSINESS

Setting up in the USA: these little-known cities for launching your business

When you want to start a business in the United States, location is an important consideration. Most people think of New York, Miami, or San Francisco. But there are other lesser-known cities that are worthy of interest and very attractive.

business establishment in the United States

Austin Texas

With a population of just over 2 million, the Austin metropolitan area is home to a significant tech industry and a thriving music scene. This might explain why the SXSW technology festival has called the city home since 1987.

The Austin metropolitan area is particularly well-suited to small businesses. It has a young and educated workforce (the University of Texas is based in Austin), no personal or corporate income tax, and enough diverse industries to offer a wide range of opportunities for startups. Austin ranks highly because it is home to the largest number of small business startups and the fastest-growing population in the region.

Technology is a key driver of small business growth. According to commercial real estate and investment firm CBRE Group, Austin ranks fifth in the nation, behind the San Francisco Bay Area, Washington, DC, Seattle, and New York City, for its ability to attract and retain tech talent. All this tech hiring has kept the unemployment rate low (3.1%), but has led to a 30% increase in office rents over the past five years.

Read also: How to invest in the USA with my foreign company?

Atlanta Georgia

The Atlanta metropolitan area is home to over 5.3 million residents, nearly 150,000 businesses, a world-class airport, and excellent schools. The unemployment rate is comparable to the U.S. average at 4.6%, although weekly wages are slightly higher than the national average.

Atlanta is home to several Fortune 500 companies, making it a particularly good place for startups. In fact, Startup Atlanta is a nonprofit community focused on growing and connecting the local startup ecosystem. It hosts events, brings together startups and regional leaders, and supports policies that support innovation and entrepreneurs.

A well-educated workforce—Georgia's university system is one of the largest in the country, producing more than 60,000 graduates each year—provides a steady stream of skilled workers for businesses. A cost of living below the national average, a thriving arts scene, and excellent restaurants and locally owned shops attract families and retirees. The median price of a home in Atlanta is $226,370.

Des Moines Iowa

As the capital of Iowa, Des Moines is particularly business-friendly. The cost of doing business here is 17% lower than the national average, making it an attractive location for new businesses. Insurance companies dominate the business scene here, with more than 80 companies having offices in and around the city. Other notable industries include publishing, financial services, distribution, and logistics. Wells Fargo is the largest private employer, with 14,500 employees in the greater Des Moines area. Unsurprisingly, the unemployment rate is lower than the national average.

The area also offers a high quality of life. A bustling downtown with unique shops, locally owned restaurants and bars, and attractive condos and lofts attract thousands of young people. While beautiful older homes in the quieter surrounding suburbs attract new families. Home prices are well below the national average at $169,550, but they increase as you move toward the newer suburban communities.

Despite having a young, educated workforce and a wide variety of industries for new businesses, Iowa has the highest corporate income tax rate in the country (12%). Personal income tax rates range from 0.36% to 8.98%.

There are still other lesser-known cities that deserve our attention as investors. If you have any questions about launching your company in the United States, please do not hesitate to contact us.