We know one of the economic benefits Alabama offers is a relatively low cost of living. So one would think that most things would cost at least a little less than it does in states where people make more money and have to spend more on the essentials.
But one study shows that Alabama is surprisingly an expensive place to start a business, reports AL.com's William Thornton.
As a matter of fact, according to Simplify LLC, it's more expensive to start a business in only five other states.
Simplify LLC supplies information to small businesses. It took a long look at basic business costs (labor, space, utilities), business environment and taxes.
Contributing to the expense of going into business in Alabama is a high $200 LLC filing fee and a relatively high corporate income tax of 6.5%. And we're No. 11 in the nation for the rental cost of commercial space.
Of course, that's all on top of the actual cost of doing business, and it can pose entry barriers for cash-strapped folks looking to open up shop.
As we all know, Alabama has also had difficulty with low labor force participation and was at 57.6% for the study. We also have a low rate of lending through the Small Business Administration.
The most expensive state in which to open a business was California, followed by New York and Hawaii and then another surprise, Tennessee, at No. 4.