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Choose a Business Location

Where you locate your business depends in part on the location of your target market, business partners, and your personal preferences. In addition, you should consider the costs, benefits, and restrictions of different government agencies.

You'll need to register your business, pay taxes, and get licenses and permits in the place you choose to locate your business.

Local Business - Marketing Concept for Small Business

Region Specific Business Expenses

  • Costs can vary significantly by location - standard salaries, minimum wage laws, property values, rental rates, business insurance rates, utilities, and government licenses and fees. Be mindful of these location differences when calculating startup costs. 

Local Zoning

  • If you plan to have a physical property for your business, make sure it conforms to local zoning requirements.
  • Neighborhoods are generally zoned for either commercial or residential use. Specific kinds of businesses may be restricted from operating in an area.
  • May have fewer zoning restrictions if you base your business out of your home, but zoning ordinances can still apply even to home-based businesses.
  • Zoning laws are typically controlled at the local level, so check with your department of city planning to find out about the zoning laws in your area.

State and Local Taxes

  • Consider the tax landscape for the state, county, and city. Income tax, sales tax, property tax, and corporate taxes can vary significantly from place to place.
  • Some state and local governments offer special tax credits for some small businesses. You might also find state-specific small business loans or other financial incentives.
  • Incentive programs and benefits are often related to job creation, energy efficiency, urban redevelopment, and technology.