Index score: 40.82

Florida has no personal income, capital gains or estate tax. Since so many people move to or visit the Sunshine State, the consumer base is growing, and demand is especially strong in health care, services for the elderly, and tourism. "All these great things are going for the state, it attracts a lot of people and entrepreneurs," says Kerrigan. A key issue facing business owners is the quality of the workforce, since the school system has a "pretty bad" reputation, says Kerrigan. The state also has a relatively high crime rate and minimum wage.