10 Best states for starting a business

"Virginia is a terrific state to do business," says Karen Kerrigan of the SBE Council. "The state's geographical proximity to the federal government, its highly educated and high-income households, and its great policy climate play major roles in this." But one major challenge for Virginia, Kerrigan points out, is transportation infrastructure, which will have to be developed to keep pace with the state's growth. This is particularly true of suburban Northern Virginia, where numerous tech companies are based.