Nevada tops this ranking as the least expensive U.S. state to start a small business, due to factors like an abundance of available commercial space and the state's lack of corporate income tax.
Small business loans were also widely available in those two states in 2020, the most recent year with complete Small Business Administration data.
Arkansas small businesses received nearly $43 million in loans per 100,000 residents that year, the sixth-highest of any state.
Some states offer tax credits for businesses in specific industries, which could help some startups and not others.
"For entrepreneurs who have the ability to pick and choose where they want to start their business, it's clear that certain states will allow you to save money," the ranking noted.