New York Ranks 48th for Business Affordability

A 50-state study estimates the average cost of starting a physical business in New York at $172,925.

Updated on Nov. 5, 2026 in Openings & Closings

New York Ranks 48th for Business Affordability

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Would you consider opening your own small business in New York?

Pixartprinting ranked New York 48th among all 50 states for business affordability, with a score of 24.5 out of 100. The study examined startup costs, state LLC formation fees and taxes.

Why it matters

The ranking places New York near the bottom nationally for the cost of opening a physical business, a factor that can shape whether entrepreneurs launch or expand locally.

New York's LLC filing fee is $200 and its state sales tax rate is 4%, with local sales taxes possibly adding to that rate. Early marketing estimates range from $300 to $2,000 for bakeries and $17,500 to $75,000 for restaurants.

The players

Pixartprinting

Pixartprinting is an Italian online printing company that published the study ranking business affordability across the 50 states.

The details

The study compared business costs across all 50 states and early marketing and branding costs for 14 business types. New York's state income tax rate ranges from 4% to 10.9%, and sticker and label costs were estimated at $700 to $800 for bakeries and restaurants, $800 to $900 for hair and nail salons, and $400 to $500 for daycares.

November 5, 2026: Study on New York startup costs published

Market Landscape

The study ranks each state on the cost of launching a physical business, offering a comparative view of where startup expenses are highest. New York's placement at 48th positions it among the least affordable states for new physical businesses in this comparison.

Entrepreneurs in New York face a $200 LLC filing fee, a 4% state sales tax with possible local additions, and state income tax rates from 4% to 10.9%. Early marketing and sticker costs can add thousands of dollars before a business opens.

The takeaway

Startup costs vary sharply by business type, so entrepreneurs in New York should budget for marketing, labels and taxes before opening. Comparing these expenses against other states can clarify where a business is most affordable to launch.