(ABC4) – New start-up centers are popping up across the United States and Salt Lake City residents may be excited to hear that their city ranks among one of the best start-up cities in the nation.
Statistics say 20% of new businesses fail within the first 12 months, and 45% won’t survive the first five years, launching a startup can be risky. But if you launch one in Salt Lake City, studies say you’ll have a higher chance of success.
In order to be successful as a startup, entrepreneurs need to build their businesses in areas with favorable tax laws, access to funding, and a local talent pool of educated workers, the study says.
The following criteria were used to rank each city:
- Business applications per 100,000 people in the last five years
- Employment growth in the last 12 months
- Average annual income
- LLC filing fees
- Incorporation filing fees
- Corporate tax rate
- Chief executives per 1,000 people
- Google Trends data
- Patents filed per 1,000 people in the last five years
Salt Lake City was ranked the 2nd best start-up city in the U.S. in a new report. The report found that there were 8,198 business applications submitted per 100,000 residents with an annual average income of $58, 008.
Salt Lake City also had 4.41 CEOs per 1,000 residents which was well over the national average of 1.42.
Las Vegas was ranked as the best startup city with 7,766 business applications per 100,000 residents with an average annual income of $51,244 with an 8.5% employment growth.
With investment expanding geographically, and tech becoming less centralized, more and more companies are beginning to expand outside of Silicon Valley. Salt Lake City has quietly attracted entrepreneurs and startups for years. With it only costing $72 to start an LLC, which is more than 50% cheaper than the national average, the growth of startups should come as no surprise.