Most Business-Friendly States 2026: Full Rankings
Ohio ranks #1 in CNBC's 2026 America's Top States for Business study, followed by North Carolina, Virginia, Texas and Minnesota. But this is a broad state-competitiveness ranking—not a shortcut for deciding where a small LLC should legally form.
What are the most business-friendly states in 2026?
Using CNBC's 2026 America's Top States for Business methodology, the top five are Ohio (#1), North Carolina (#2), Virginia (#3), Texas (#4) and Minnesota (#5). The study scores every state on 138 metrics across 10 competitiveness categories. In 2026, Infrastructure became the top-weighted category and ease of permitting was added for the first time.
How CNBC's 2026 Ranking Works
CNBC's America's Top States for Business study is designed to compare state competitiveness for companies making location and investment decisions. In 2026, CNBC scored all 50 states on 138 metrics in 10 categories. The categories are reweighted annually to reflect what states themselves emphasize when competing for business.
| 2026 category | Points | Weight |
|---|---|---|
| Infrastructure | 440 | 17.6% |
| Economy | 415 | 16.6% |
| Workforce | 345 | 13.8% |
| Quality of Life | 290 | 11.6% |
| Cost of Doing Business | 285 | 11.4% |
| Technology & Innovation | 245 | 9.8% |
| Business Friendliness | 225 | 9.0% |
| Access to Capital | 105 | 4.2% |
| Education | 100 | 4.0% |
| Cost of Living | 50 | 2.0% |
The biggest methodology change for 2026 is that Infrastructure became the heaviest-weighted category. CNBC also incorporated ease of permitting for the first time, reflecting companies' demand for site readiness, utilities, energy, water, logistics and faster project approvals.
Top 10 Most Business-Friendly States in 2026
| Rank | State | Useful 2026 context |
|---|---|---|
| #1 | Ohio | #1 Infrastructure; #1 Cost of Doing Business |
| #2 | North Carolina | Sixth consecutive year in CNBC's top two |
| #3 | Virginia | Rose from #4 in 2025 |
| #4 | Texas | Top-tier workforce and economy performance |
| #5 | Minnesota | Returned to the top five |
| #6 | Michigan | Highest overall finish in the state's CNBC ranking history |
| #7 | Georgia | Strong Infrastructure and Access to Capital |
| #8 | Florida | Strong Workforce and Access to Capital; high Cost of Living |
| #9 | Tennessee | Top-ten overall finish |
| #10 | Indiana | Strong Cost of Doing Business performance |
Why Ohio Ranked #1 in 2026
Ohio rose from #5 in 2025 to #1 in 2026, its first top finish since CNBC launched the study in 2007. CNBC's 2026 release highlights Ohio's leading infrastructure, including market access, sites and power capacity. Independent reports reproducing CNBC's category results show Ohio ranked #1 in both Infrastructure and Cost of Doing Business.
The result also reflects a long climb. Ohio ranked #30 in CNBC's inaugural 2007 study and had improved for five consecutive years by 2026.
Arkansas: 2026's Most Improved State
CNBC identified Arkansas as the most improved state in the 2026 ranking. It climbed 13 places to #28 overall. That kind of movement is a useful reminder that year-to-year rank changes can come from both a state's performance and CNBC's annual category weighting.
The Bottom 10 States in 2026
| Overall rank | State |
|---|---|
| #41 | New Mexico |
| #42 | Oregon |
| #43 | Mississippi |
| #44 | South Dakota |
| #45 | Montana |
| #46 | West Virginia |
| #47 | Louisiana |
| #48 | Rhode Island |
| #49 | Alaska |
| #50 | Hawaii |
Hawaii fell to #50 overall. Reporting on CNBC's category results shows Hawaii was #50 in Infrastructure and Cost of Doing Business, while still ranking much higher in Quality of Life.
Full 2026 Ranking: All 50 States
The table below reproduces the complete 2026 overall order and adds each state's Infrastructure rank, the category CNBC weighted most heavily this year. South Carolina and Connecticut are tied at #23, which is why the sequence moves from #23 to #25.
| Overall | State | Infrastructure rank |
|---|---|---|
| #1 | Ohio | 1 |
| #2 | North Carolina | 13 |
| #3 | Virginia | 2 |
| #4 | Texas | 12 |
| #5 | Minnesota | 7 |
| #6 | Michigan | 9 |
| #7 | Georgia | 5 |
| #8 | Florida | 32 |
| #9 | Tennessee | 6 |
| #10 | Indiana | 4 |
| #11 | Washington | 16 |
| #12 | Illinois | 3 |
| #13 | Pennsylvania | 11 |
| #14 | Arizona | 8 |
| #15 | Massachusetts | 24 |
| #16 | Utah | 28 |
| #17 | California | 26 |
| #18 | New York | 13 |
| #19 | Iowa | 15 |
| #20 | Wyoming | 37 |
| #21 | Alabama | 10 |
| #22 | Wisconsin | 24 |
| #23 | Connecticut | 29 |
| #23 | South Carolina | 27 |
| #25 | Colorado | 32 |
| #26 | Nebraska | 36 |
| #27 | Kentucky | 17 |
| #28 | Arkansas | 23 |
| #29 | North Dakota | 34 |
| #30 | Idaho | 45 |
| #31 | New Jersey | 41 |
| #32 | Delaware | 41 |
| #33 | Nevada | 20 |
| #34 | New Hampshire | 43 |
| #35 | Maine | 47 |
| #36 | Maryland | 17 |
| #37 | Kansas | 31 |
| #38 | Missouri | 21 |
| #39 | Oklahoma | 21 |
| #40 | Vermont | 37 |
| #41 | New Mexico | 29 |
| #42 | Oregon | 17 |
| #43 | Mississippi | 34 |
| #44 | South Dakota | 44 |
| #45 | Montana | 48 |
| #46 | West Virginia | 40 |
| #47 | Louisiana | 39 |
| #48 | Rhode Island | 46 |
| #49 | Alaska | 49 |
| #50 | Hawaii | 50 |
2026 State Rank Checker
Select any state to see its overall CNBC ranking and its 2026 Infrastructure ranking.
Ohio — #1 overall
Infrastructure rank: #1. Use this as broad competitiveness context, not as a stand-alone LLC formation recommendation.
Compare LLC formation factors →What This Ranking Means for an LLC Owner
Do not form in Ohio merely because Ohio ranks #1 here. CNBC is measuring broad business competitiveness. A local service business, online company, real estate owner or solo consultant often faces a much more practical question: where is the business actually operating and where must it register?
For an LLC formation decision, prioritize the state where you actually do business, then compare filing fees, recurring reports, state taxes, licenses, registered-agent rules, privacy, litigation rules and foreign-registration consequences. Forming in a highly ranked state does not eliminate registration duties in the state where the business is actually located.
Use our Best State to Form an LLC guide and LLC Filing Fees by State for that narrower decision.
Already Chosen Your State?
Northwest Registered Agent
If you have already determined the correct state for your LLC and want paid help filing the state formation document, Northwest is one option. A formation service does not determine which state is legally or economically best for your business.
See Northwest's current offer →Affiliate disclosure: LLC School may earn a commission if you use this link. Northwest is optional.
Sources & Methodology Notes
Ahmad Adil
This page summarizes CNBC's 2026 state competitiveness study and clearly separates that third-party ranking from LLC School's entity-formation analysis. Ranking positions and methodology were checked against CNBC materials and corroborating publications dated July 2026.
About Ahmad Adil →