Starting your own business involves taking risks and making significant life changes. Some entrepreneurs want to be their own boss or pursue their passions full time. Whatever reasons you have, it takes courage and not being afraid to fail. You’re not alone in your journey; almost all businesses in the U.S. are startups.

To succeed, you need determination, dedication, and financial resources. Location is also important to help you thrive. It’s important to learn about the best cities for startups during the initial planning stages.

Choosing a city to set up your small business can be a difficult decision. You want an environment that fosters growth and has a reasonable cost of living. The best places for startups also have access to top talent and resources.

Several major cities used to be the ideal places to start a small business. Over recent years, property prices have increased, making them less budget-friendly.

Here are the top cities for startups that offer more affordability.  


Austin, Texas

One of the best places for tech startups is no longer Silicon Valley, but Austin, Texas. The city gives you access to one of the biggest tech communities in the United States. Entrepreneurs and workers are both drawn to relocate to the state capital.

Austin is a well-educated city and gives you access to a talent pool of intelligent people. The University of Texas attracts young, smart, and hungry minds. Austin is also known for its creative culture.

As far as taxes go, Texas is one of the best places to start a business for founders and employees. No state income or corporate business tax is collected in Texas. Compared to other U.S. cities, Austin also has a lower cost of living.

Tesla recently moved to Austin to reap the benefits that Texas offers. Residents enjoy live music, art, great food, and shopping.


Denver, Colorado

Denver is a top-ranked relocation city for skilled workers 25 to 44 years old. If you’re looking to start a business, you won’t have trouble finding employees. Denver also has opportunities for startups to build relationships with universities.

The city has an educated workforce, with 53% of the population holding a bachelor’s degree. With plenty of driven people to hire, Denver is one of the top cities for startups. Popular industries include clean energy and cannabis.

A new train system in Denver called FastTracks was recently launched; it’s an ongoing project. The transportation options make it easy for entrepreneurs and employees to get around. You can take the train to commute across the city and surrounding areas.

Denver is located in the middle of the United States, making business trips easier. The city’s airport is the largest in the country and continues to be expanded. Colorado also has breathtaking views and is perfect for anyone who loves nature.


Los Angeles, California

Nicknamed “The City of Dreams,” Los Angeles lives up to being a top place for startups. New businesses have a large number of networking opportunities in L.A. The city has many investors and venture capital firms.

Los Angeles is the new Mecca for tech businesses in the United States. Behind Silicon Valley and NYC, the city is the third-largest place for startups. You can choose to live in downtown Los Angeles or a beautiful commuter town.  

The city has half the living costs of Silicon Valley, making it much more affordable. You also get to enjoy warm and sunny weather year-round. Los Angeles has iconic beaches and many recreational activities to enjoy.

It’s no surprise that many major companies are headquartered in Los Angeles. SpaceX and Snapchat are two examples of successful tech startups. The city is culturally diverse and home to many engineering students. 


Miami, Florida

Another hot place for startups is Miami, which has a highly diverse group of people. Many assume that the city is only a major tourist destination. However, Miami also makes waves as one of the best places to start a business.

Miami has a reasonable cost of living for a major city in the United States. Housing prices run only 22% above the national average. Many larger companies that were once tech startups have satellite offices in Miami.

Florida benefits entrepreneurs and employees by having no state or personal income tax. Having more money in your pocket makes things more affordable for everyone. A few local universities have programs that offer talent to new businesses.

In the United States, Miami has the highest startup density in the country. Recently recognized as the most entrepreneurial city, it’s a top place to start a business. You have a chance to partner and network with others who are self-employed.

best cities for startups

Atlanta, Georgia

Georgia is the 9th cheapest state to live in, with Atlanta being a top city for startups. Residences downtown cost more because of several Fortune 500 company headquarters. However, compared to other cities, housing prices in Atlanta are reasonable.

Atlanta is home to some of the best tech incubators and has programs for new businesses to get funding. There are also initiatives in the city to help you find potential employees. For example, Atlanta Tech Village helped 300 startups create over 6,500 jobs.

The city is culturally diverse, with people from all different backgrounds. Atlanta has been on the rise with tech startups in the last five years. There’s been tremendous job growth and a wide range of opportunities. Atlanta has recognizably become one of the best cities to start a business. 

Computer software jobs have grown by almost 50% due to the number of tech startups. Colleges in Atlanta produce highly educated and trained candidates for you to hire. The city’s economy isn’t slowing down, making it one of the best places for startups. 


Dallas, Texas

Dallas, Texas, also makes the cut for the best cities to start a business. One benefit is affordable real estate that makes relocation feasible. Commercial and residential buildings are 20% cheaper than the national average. The city is approximately 200 miles north of Austin but has lower costs. 

The Dallas–Fort Worth (DFW) metroplex area has over 40 colleges and universities. You’ll have access to an abundant and skilled workforce to pick the right people for your business. The city also has public transportation, the DART, for an easier commute.

Texas has no state or corporate taxes, making DFW one of the best places for startups. You’ll have more money to invest in your new business.

Residents enjoy the warm weather, nightlife, and excellent food. Dallas, Texas, has the largest art district in the United States. You can also travel and explore other cities outside of the DFW area. If you’re looking to move to the Dallas area, consider hiring a Plano moving company.


Minneapolis, Minnesota

The startup density in Minneapolis, Minnesota, is 7.8%. Living in the Twin Cities is more affordable than in other metropolitan areas. The entrepreneurial culture in Minneapolis encourages collaborative work environments.

No stranger to business, 16 companies on the Fortune 500 list call Minneapolis home. Having large corporations in the Twin Cities serves as an anchor to startups. Access to resources makes Minneapolis one of the best places to start a business. 

Minneapolis holds many annual events for startups to connect with investors. They hold a Startup Week every September for small businesses to network. The Twin Cities also host mentorship and support programs.

The city also hosts the “Minnesota Cup,” a competition for startups in Minneapolis. Entrepreneurs and new businesses can win meetings with investors. Prizes include funding and capital for your startup.


Seattle, Washington

Entrepreneurs know Seattle because of three startups that became international success stories. Those companies are Amazon, Microsoft, and Starbucks. With those superstars, it makes sense that the startup density in Seattle is 10%.

Finding funding increases the likelihood of your business succeeding. Almost 2% of firms receive venture capital investments in the city. The cost of living in Seattle is high, but it’s one of the best places for startups. 

As a new business, the city offers the “Only in Seattle Initiative” to give grants to startups, and the local government staunchly supports small businesses. Seattle continues to grow as it remains one of the top cities for startups and workers.

Another benefit is that Seattle, Washington, doesn’t collect income tax. The relief of this burden aids your business and housing expenses. Plus, it’s a lively city with plenty of fun activities to entertain and inspire you in your free time.


Where Will You Set Up Shop?

With a list of the best cities for startups, where will you head? The top places for startups all offer something different. Take your time and decide which area best suits you and your company’s niche. You have an assortment of climates, time zones, and benefits to set you up for success. 

Are you considering moving your startup to one of these top cities listed above? Feel free to read some tips for relocating your business to help make the move a seamless one.