The 10 Best US cities for business in 2025, for startups and entrepreneurs

The US is one of the most entrepreneurial countries, with more than 4.7 million businesses starting every year.¹ For UK entrepreneurs looking to expand, this means access to diverse markets and top talent. But with so many options available, the challenge is in choosing the right one.

We’ve made this easier by selecting the 10 best cities in the US for startups and entrepreneurs in 2025. Plus, you’ll learn how Wise Business can help you grow globally with multi-currency accounts.

Go global with Wise Business🚀

The best cities in the USA for businesses: an overview

• The best cities to start a business in 2025 all offer access to talent and capital to help startups and entrepreneurs.
• Tech communities and business incentives have made Austin and Miami attractive to startups.
• Local policies that are business-friendly, such as ease of permitting in Raleigh and funding programmes in Denver, enable businesses to start up and grow fast.
• There is no single city that suits all businesses, so consider your industry and goals before choosing where to start or expand.

What makes a city business-friendly?

When you’re starting your business in the US, you want a city that helps you move fast and keep costs in check. Here are factors that make a city business-friendly:

• Strong talent pool: A city with a good talent base has a higher chance of driving your growth. The best cities to conduct business have skilled workers and the best universities. They provide businesses with solid options when it comes to hiring at all levels.
• Reasonable taxes and business costs: CLocal taxes and fees can have a huge impact on your bottom line. In some cities, corporate taxes are lower, new businesses are given attractive incentives or startups are targeted with relief. Costs are also controlled by transparent regulations and fast processing times
• Low cost of living: A low cost of living and doing business will leave you with more funds to expand. Also, cities with a balance between affordable housing, office rent, and daily expenses help businesses attract and retain the best employees.
• Access to capital and support: The financial system of a city can be a game-changer. Find cities that have venture capital, angel investors and government grant programmes. Your progress can be accelerated by business incubators, accelerators, and local mentoring in startup hubs.
• Reliable transport and infrastructure and connectivity: Good transport systems, digital infrastructure, and airports are some of the most important factors that make the best cities to start a business. Efficient logistics will lead to reduced delays and increased growth opportunities, whether you have local or international customers.
• Good quality of life and business culture: Finally, consider what it is like to live and work every day in a city. Good schools, healthcare, safe neighbourhoods, and active communities help businesses in maintaining and attracting good customers. Plus, cities with a diversified industry and a large customer base can give more stable demand and opportunities.

Top 10 best cities for business

Choosing the right city is one of the most important decisions you'll make when expanding to the US. Some cities have a rich talent pool, and others have a friendly business environment. These are our 10 best cities to start a business in 2025 to help you decide.

Austin, Texas

Austin has a high rate of new business formation and a tech talent pool. The US Census Bureau reported that Austin is one of the fastest-growing metro areas.² The city has attracted major tech giants such as Tesla, Apple, and Oracle, which have enabled a thriving job market.³

Also, there’s an accelerator and coworking ecosystem, such as Capital Factory and MassChallenge,⁴ which introduces founders to investors that support early-stage growth. If you’re launching a tech startup, Austin’s active ecosystem and no state income tax make is a good choice.

Raleigh, North Carolina

Raleigh is one of the best cities to start a business. The affordable office space and low cost of living allow entrepreneurs to save more. You don’t need a business licence to start a business in Raleigh.⁵ There’s also a great talent pool with universities such as NC State, Duke and UNC nearby.

The city has a solid biotech and tech industry with new investments continuing to grow the local economy. In 2024, Fujifilm Diosynth broke ground on a new 2 billion USD biomanufacturing facility in Raleigh.⁶ This alone added hundreds of skilled jobs to the region. Opt for Raleigh if you need a business environment that is supportive, practical and efficient.

Miami, Florida

Miami is a business gateway to the US and Latin America. The city has low corporate taxes and no personal income tax,⁷ and this makes reinvesting in growth easy. The other benefit is the availability of international talent in Miami, where there are many bilingual workers and a culture that embraces new ideas.

The local innovation is gaining speed through Miami AI Hub, which hosted more than 4,000 attendees and supported over 50 AI startups.⁸ This is just one of the many moves that’s making Miami a destination of choice among founders seeking community, opportunity, and space to scale.

Salt Lake City, Utah

Salt Lake City is one of the most popular destinations among startups seeking a combination of affordable, business-friendly prices and actual opportunity. The city continues to attract founders due to its constant supply of young talent at local universities, a favourable community, and availability of funding. The cost of living in Salt Lake City is affordable, and businesses can allocate more cash to growth rather than rent.

The Salt Lake City Economic Development Division initiated the Tech Lake City to assist tech and life sciences startups with grants and access to incubators. These incentives make the city one of the easiest places for entrepreneurs to start and grow their business.⁹

Los Angeles, California

Los Angeles (LA) is the fastest-growing startup hub in the US, mixing technology and creativity in a way that is unrivalled. LA has over 1,100 startups, more than 100 venture capital firms, and a consistent flow of graduates of 113 local universities.¹⁰ This makes it an unrivaled energy and diversity. It is the birthplace of major players such as Snapchat, SpaceX, and Riot Games,⁹ and you can find innovative businesses in media, health tech, and aerospace.

Venture capital investment in LA startups was 3.1 billion USD in the first quarter of this year,¹¹ maintaining the city at the top of the venture funding list. Also, small businesses are finding it easier to scale online and tap into new markets with the help of local programmes such as LA optimised.¹²

Denver, Colorado

Startups and established businesses are flocking to Denver, where they can find that sweet spot of expansion and quality of life. A robust tech and aerospace industry, a low cost of living, and the proximity to the Rockies when you need to get away help the city continue to attract talent and new companies.

Denver has a startup ecosystem that is centred around collaboration, which includes co-working spaces, incubators, and a rich local network, so entrepreneurs have the support they need. Earlier this year, Multiply Mortgage, a Denver-based mortgage fintech, landed a 23.5 million USD Series A funding,¹³ showing the city’s growing momentum. Denver should be high on your list if you want a city where business and lifestyle go hand in hand.

Seattle, Washington

Seattle is one of the most business-friendly cities due to its robust tech industry, capital access, and skilled labour. Both Amazon and Microsoft are based there,¹⁴ and there are also hundreds of fast-growing startups. Although the cost of doing business is above the national average, you don’t pay personal income tax in Washington.¹⁵ This is one way to offset some of your business expenses.

The city also has a solid venture capital funding that has facilitated 1.2 billion USD in startup investment in the third quarter of 2024.¹⁶ The city authorised an innovation district in South Lake Union for additional space and resources for startups in life sciences, clean tech, and artificial intelligence.¹⁷ Go for Seattle if you want your business ideas to come to life.

Atlanta, Georgia

Atlanta is the Southeast's business capital, and it connects founders to one of the largest logistics and distribution networks in the country. The airport in the city handles more passengers than any other airport,¹⁸ and this makes international business easy. Due to the strength in fintech, cybersecurity, and logistics, Atlanta provides a competitive advantage to startups and has institutions of support, such as Georgia Tech and Atlanta Tech Village.

The new data centre and the AI innovation hub in the city have enabled Microsoft to cement its place as a hub of digital infrastructure and advanced technology.¹⁹ Atlanta is a perfect launchpad when you want to have access to growth industries and have an established mentorship and capital ecosystem.

Houston, Texas

Houston is a vibrant business place, at least when you are interested in energy, manufacturing, or logistics. Houston is the energy capital of the world, with over 4,600 energy-related companies.²⁰ Business costs are low due to the low cost of living and the absence of individual and corporate income taxes.²¹

Here you’ll find a rich talent pool, which is driven by local universities and a continuous flow of skilled professionals. The port of Houston is one of the busiest ports in the US, making it the preferred destination for international trade.²²Chevron and other large energy players relocation to Houston strengthens its status as a business growth hub in the world.²³

Nashville, Tennessee

Nashville is one of the most business-friendly cities in 2025 due to the low cost of living and support for startups and entrepreneurs. The city is home to more than 500 healthcare-related businesses,²⁴ and the creative industry is also flourishing. Nashville has a business-friendly environment with affordable office space, a lot of networking, and an engaged community, such as the Nashville Entrepreneur Centre.²⁵

The city is also centrally located, and this is beneficial to entrepreneurs, as they can easily reach customers around the US. If your startup is in healthcare or creative fields, Nashville should be high on your list.

💡 Learn more on how to start a business in the US🇺🇸

💡 Incorporating in Delaware

Despite being the second-smallest state in the U.S, almost 70% of Fortune 500 companies are incorporated there.²⁶ , including the likes of Apple, Amazon and Meta. Whilst you may not want to move your entire operations to a city in Delaware, registering there is the favourable choice of most public trading companies and international startups. This is due to its unique and flexible legal framework - and being home to the Court of Chancery, a court with expertise in corporate law. Additionally, those working out of the state can benefit from a range of tax benefits, including no state income taxes.²⁶

You do not need a physical presence to incorporate in Delaware, making it an attractive option for international businesses. Though you do require a registered agent with an address in the state. For that reason, many large corporations have their legal headquarters in cities like Wilmington or Milton.

More top tips to expand to the US

Expanding to a new market comes with its challenges, but a few smart steps can make your move much smoother. Here are some practical tips to help you get started in the US:

• Choose the right company structure: Decide between LLC, corporation, or any other arrangement that suits your objectives. LLCs are flexible and offer liability protection, whereas corporations can be used by those who want to attract investors or become publicly traded. Every structure has its own set of compliance rules, so select the right one to prevent expensive modifications in the future.
• Prepare your finances and funding: Raise enough capital to finance initial expenses, salaries, and daily expenses. You’ll also need a local business account. Use Wise Business to send and receive international payments and hold and manage funds in 40+ currencies.
• Understand tax requirements: Tax regulations in the US are state- and city-specific, with varying rates and filing conditions. There are cities that provide tax incentives to startups and others that are more demanding. Do your research, and consider consulting a US-based tax expert to make things easy and compliant.
• Build a local network and team: Hiring local talent will help you know the market and adjust quickly. Find the right employees in the city by using local hiring networks, job boards and events. There are also business incubators and networking groups in most cities, and they can help you identify potential hires and advisors.

💡 See our complete guide to doing business in the U.S✈️

Expand to the US with Wise Business, the business account for startups and entrepreneurs

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While having a local corporate bank account may be a key requirement in many countries, you can also use Wise Business to help grow your business in the US.

Open a Wise Business account and you can manage your company’s finances in 40+ currencies all in one place, including USD, EUR, GBP, CAD and all other major currencies.You’ll be able to pay suppliers and staff in their own currency, as well as receiving payments in multiple currencies.

Wise payments are fast and secure (even for large amounts). Best of all, you’ll only pay low, transparent fees and always get the mid-market exchange rate.

With Wise Business, you’ll also benefit from the following features:

• Issue business debit and expense cards for you and your team
• Cashback on eligible card spending
• Generate invoices and payment links to receive money easily from customers
• Access accounting integrations, batch payments and a powerful API
• Wise Interest - which lets you earn returns on balances held in GBP, USD and EUR.

Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

It’s quick and easy to open a Wise Business account, with a fully digital application, verification and on-boarding process. Check out the requirements here.

Wise works almost everywhere, and you can open an account in the US, Canada, Europe and of course, the UK.

Get started with Wise Business✈️

Sources used

1. How Many New Business in the US – Commerce Institute
2. US Metro Areas – US Census
3. Companies Moving to Austin – Move to Austin
4. Top Startup Accelerator Incubators in Austin – Accelerator App
5. Raleigh Permits and Licences – Raleigh Government
6. Leading Life Sciences Company Investment – Raleigh Wake
7. Taxes in Florida – Tax Foundation
8. Miami AI Hub – Reuters
9. STEM Education Initiative – Department of Economic Development (Salt Lake City)
10. Why Los Angeles Became the Most Innovative City – Nexxworks
11. Venture Capital Funding – LA Times
12. LA Optimised About – LA City
13. Multiply Mortgage Raises 23.5 Million – Fintech Futures
14. Top Tech Companies in Seattle – Executech
15. Washington Income Tax – Department of Revenue Washington
16. Venture Capital Funding in Seattle – Life Sciences Jobs Washington
17. Seattle Startups Move into Life Sciences Cluster – Life Sciences Jobs Washington
18. Atlanta Airport Posts Record International Traffic – Global Atlanta
19. Microsoft in Atlanta Microsoft
20. The Energy Capital of the World – Greater Houston Partnership
21. Taxes in Texas – Tax Foundation
22. Houston is Top US City for International Trade – Greater Houston Partnership
23. Chevron Relocates Headquarters to Houston – Greater Houston Partnership
24. Nashville is the Health Services Capital – Forbes
25. Nashville Entrepreneur Centre – Nashville Downtown Partnership
26. Top 5 reasons to choose a Delaware domiciled entity - CNBC

Sources last checked: 31-Jul-2025