Pick your business location | U.S. Small Business Administration

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" > <a href="/business-guide/launch-your-business" class="usa-breadcrumb__link"> <span>Launch your business</span> </a> </li> <li class="usa-breadcrumb__list-item usa-current" aria-current="page"> <span>Pick your business location</span> </li> </ol> </nav> </div> </div> <div class=""> <div data-drupal-messages-fallback class="hidden"></div> </div> <div class="grid-row "> </div> <div class="sba-layout-docs sba-layout-docs--sidebar"> <div class="layout-sidebar-first"> <nav aria-labelledby="sidebar-menu-navigation"> <h2 class="visually-hidden" id="sidebar-menu-navigation">Section navigation</h2> <ul class="usa-sidenav"> <li class="usa-sidenav__item first"> <a href="/business-guide/10-steps-start-your-business"> <span>10 steps to start your business</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/plan-your-business"> <span>Plan your business</span> </a> </li> <li class="usa-sidenav__item expanded dropdown active active-trail"> <a class="usa-current" href="/business-guide/launch-your-business"> <span>Launch your business</span> </a> <ul class="usa-sidenav__sublist"> <li class="usa-sidenav__item active active-trail first"> <a class="usa-current" href="/business-guide/launch-your-business/pick-your-business-location"> <span>Pick your business location</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/launch-your-business/choose-business-structure"> <span>Choose a business structure</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/launch-your-business/choose-your-business-name"> <span>Choose your business name</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/launch-your-business/register-your-business"> <span>Register your business</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/launch-your-business/get-federal-state-tax-id-numbers"> <span>Get federal and state tax ID numbers</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/launch-your-business/apply-licenses-permits"> <span>Apply for licenses and permits</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/launch-your-business/open-business-bank-account"> <span>Open a business bank account</span> </a> </li> <li class="usa-sidenav__item last"> <a href="/business-guide/launch-your-business/get-business-insurance"> <span>Get business insurance</span> </a> </li> </ul> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business"> <span>Manage your business</span> </a> </li> <li class="usa-sidenav__item last"> <a href="/business-guide/grow-your-business"> <span>Grow your business</span> </a> </li> </ul> </nav> </div> <div class="usa-layout-docs__main"> <h1 data-test="title" > <span>Pick your business location</span> </h1> <div id="block-sba-content" class="block block-system block-system-main-block"> <article class="basic-page"> <div> <div class="basic-page__summary" data-test="pageSummary"> Your business location determines the taxes, zoning laws, and regulations your business will be subject to. You'll need to make a strategic decision about which state, city, and neighborhood you choose to start your business in. </div> <div class="sba-toc sba-standard-margin-spacing"> <hr class="sba-toc__divider-first sba-standard-margin-spacing" role="presentation"> <h2 id="sba-toc-heading" class="sba-toc__heading js-toc-ignore">Content</h2> <nav id="sba-toc__nav" aria-labelledby="sba-toc-heading" class="sba_toc__nav sba-standard-margin-spacing"></nav> <hr role="presentation"> </div> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="-research-the-best-place-to-locate-your-business"> Research the best place to locate your business</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>You'll need to <a data-entity-substitution="canonical" data-entity-type="node" data-entity-uuid="889090a2-4c67-4dfe-95f2-ba7060600845" href="/business-guide/launch-your-business/register-your-business" title="Register your business">register your business</a>, <a data-entity-substitution="canonical" data-entity-type="node" data-entity-uuid="6936fd6e-effd-499e-8516-d096c097a3e3" href="/business-guide/manage-your-business/pay-taxes" title="Pay taxes">pay taxes</a>, and get <a data-entity-substitution="canonical" data-entity-type="node" data-entity-uuid="e3f12b44-181d-4b0f-91d1-9c2586db3eeb" href="/business-guide/launch-your-business/apply-licenses-permits" title="Apply for licenses and permits">licenses and permits</a> in the place you choose to locate your business.</p> <p>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.</p> </div> </div> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="region-specific-business-expenses"> Region-specific business expenses</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>When you <a href="/business-guide/plan-your-business/calculate-your-startup-costs" data-entity-type="node" data-entity-uuid="f9030c33-4043-4d58-97a3-c48e488d8c04" data-entity-substitution="canonical" title="Calculate your startup costs">calculate your startup costs</a>, take into account the way different expenses might cost more or less depending on your location.</p> <p>Costs that can vary significantly by location include standard salaries, <a href="https://www.dol.gov/whd/minwage/america.htm">minimum wage laws</a>, property values, rental rates, business insurance rates, utilities, and <a href="/business-guide/launch-your-business/apply-licenses-permits" data-entity-type="node" data-entity-uuid="e3f12b44-181d-4b0f-91d1-9c2586db3eeb" data-entity-substitution="canonical" title="Apply for licenses and permits">government licenses and fees.</a></p> </div> </div> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="local-zoning-ordinances"> Local zoning ordinances</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>If you buy, rent, build, or plan to work out of a physical property for your business, make sure it conforms to local zoning requirements.</p> <p>Neighborhoods are generally zoned for either commercial or residential use. Zoning ordinances can restrict or entirely ban specific kinds of businesses from operating in an area.</p> <p>You might have fewer zoning restrictions if you base your business out of your home, but zoning ordinances can still apply even to home-based businesses.</p> <p>Zoning laws are typically controlled at the local level, so check with your department of city planning, or similar office, to find out about the zoning laws in your area.</p> </div> </div> <aside class="sba-read-more-accordion" aria-labelledby="sba-read-more-accordion--heading-4356"> <h2 id="sba-read-more-accordion--heading-4356" class="sba-read-more-accordion__title">Location, location, location</h2> <div class="usa-accordion usa-accordion--bordered sba-read-more-accordion__accordion"> <h3 id="john-and-kelly-looked-at-what-they-needed-in-a-business-location-and-found-the-best-spot-to-open-their-auto-repair-shop" class="usa-accordion__heading"> <button class="usa-accordion__button" aria-expanded="false" aria-controls="sba-accordion-item" > John and Kelly looked at what they needed in a business location and found the best spot to open their auto repair shop. </button> </h3> <div id="sba-accordion-item" class="usa-accordion__content"> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>John and Kelly list what they need in a location for their auto repair shop and search the local area to see what鈥檚 available.</p> <p>After evaluating all of their options, they decide to buy a large garage that鈥檚 close to business ready. The building is located near a major highway, so drivers can easily spot the business and its signs. John and Kelly search the U.S. Census Bureau website and find that 75% of households in the county have at least one automobile.</p> <p>Before buying the building, John and Kelly consult a knowledgeable real estate lawyer who walks them through the fine print of the contract. They also contact the local planning agency to make sure the building is located in an appropriate business zone.</p> <p>John and Kelly find out that the down payment and closing costs of the building add up to more than they budgeted for their business location. But the state offers loans specifically for small businesses. John and Kelly鈥檚 auto repair shop also qualifies for tax incentives because it鈥檚 located in an underutilized area.</p> <p>With money from the state loan and tax incentives, John and Kelly are able to purchase the building for their auto repair shop.</p> </div> </div> </div> </div> </aside> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="state-and-local-taxes"> State and local taxes</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>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.</p> <p>In fact, some states are well-known for creating tax environments that are very friendly to certain kinds of companies. That鈥檚 part of the reason why tech startups, financial institutions, and manufacturing tend to concentrate in certain areas of the country.</p> <p>Visit state and local government websites to find out what the tax landscape for your area looks like.</p> </div> </div> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="state-and-local-government-incentives"> State and local government incentives</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>Some state and local governments offer special tax credits for small businesses. You might also find state-specific small business loans or other financial incentives.</p> <p>Incentive programs and benefits are often related to job creation, energy efficiency, urban redevelopment, and technology.</p> <p>Visit local <a href="/about-sba/sba-locations/sba-district-offices">SBA Offices</a>, <a href="/local-assistance/resource-partners/small-business-development-centers-sbdc" data-entity-type="node" data-entity-uuid="ba95dcaf-92a7-41e1-bcd9-73d2106f810a" data-entity-substitution="canonical" title="Small Business Development Centers (SBDC)">Small Business Development Centers</a>, <a href="/local-assistance/resource-partners/womens-business-centers" data-entity-type="node" data-entity-uuid="72fca93e-bc76-440f-ba2a-7f52c1ebf7da" data-entity-substitution="canonical" title="Women's Business Centers">Women鈥檚 Business Centers</a> state and local government websites to find more information.</p> </div> </div> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="federal-government-incentives"> Federal government incentives</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>The federal government offers benefits to small businesses that contract with the government and are based in underutilized areas. Check into the <a href="/federal-contracting/contracting-assistance-programs/hubzone-program" data-entity-type="node" data-entity-uuid="19e080f6-702f-4491-8934-e204db3efc41" data-entity-substitution="canonical" title="HUBZone program">Historically Underutilized Business Zones (HUBZone) program</a> to see if you qualify for preferential access to federal procurement opportunities.</p> </div> </div> <section id="block-counselormatchcta" class="sba-call-to-action sba-standard-margin-spacing padding-y-0" style="background-color:#ffffff"> <div class="sba-call-to-action__inner"> <div class="sba-call-to-action__content left dark short"> <h3>Need help? 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