SimplifyLLC – A new study has ranked North Dakota as the 35 best state for entrepreneurs in 2025, marking a fall 13 spots compared to last year’s rankings.

American entrepreneurship is booming, with unprecedented growth and generational shifts driving new opportunities. The Treasury Department reports that 430,000 new businesses opened each month in 2024, a 50% increase since 2019. Innovations like remote work, the gig economy, and AI are fueling this transformation, creating entrepreneurial hot spots across the nation.

Simplify LLC released its annual study on the Best & Worst States for Entrepreneurs in 2025 using the most recent data from the Census Bureau, Bureau of Economic Analysis, Tax Foundation, and the U.S. Senate.  

The rankings were determined by analyzing six key categories in all 50 states and D.C.: corporate tax rate, inflation, consumer spending growth, job creation rate, and net migration of educated workers. 

Key Findings:

  • North Dakota: Rank 35, down 13 from 2024: North Dakota’s ranking fell due to a sharp 30.2-point decline in new business growth (-11.7%, ranking No. 43) and slower job creation (a rate of 13.7, up from 8.6 but ranking No. 48). Despite this, the state’s low maximum corporate income tax rate (4%, ranking No. 8) helped maintain its overall standing in the middle of the pack. 
  • 10 Best States for Entrepreneurs in 2025: Washington, Texas, Maine, Nevada, Oregon, Florida, Rhode Island, Colorado, Vermont, Hawaii
  • Leading Sectors for New Business: 
    • Retail: Including e-commerce and brick-and-mortar stores. 
    • Professional, Scientific and Technical Services: Such as legal and accounting. 
    • Construction: residential and non-residential.