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3 Reasons Why You Might Want to Relocate Your Startup to Ohio
This midwestern state has everything a growing business needs to find success.
Where your business calls home is a big deal. From the physical need to house a higher headcount to the opportunity to tap into a new market, there's a whole kaleidoscope of factors that play into the decision of if or when a business should relocate. But once companies arrive at the decision to pick up and plant new roots, it becomes crucial to the success of the business to find a location that supports all their new and growing needs.
Take Ohio, for instance. The startup scene in the Buckeye State is hot. And with a Gross State Product of $675 billion, Ohio is the 7th largest economy in the U.S. Worldwide, Ohio's economy is ranked 21st.
All this goes to show that there are a lot of great things happening in Ohio. The state boasts an incredible overall business climate, some of the best universities in the U.S., top-notch infrastructure, investment opportunities, and so much more.
We spoke with Ron Rock, Senior Director of Insurance at JobsOhio, to explore some of the most compelling reasons on why businesses should consider Ohio for both a relocation and the opportunity to thrive.
1. Reasonable tax structures.
Not only are state tax rates important to the business itself, they're also incredibly pertinent to the employees included in your relocation. Certain states employ a corporate tax, which requires businesses to pay tax on the profits of the company, but those taxes aren't just shouldered by the business, they are also paid by employees in the form of lower wages.
"We have a very simple tax structure in Ohio, and we don't have a state corporate tax," Rock explains. "At JobsOhio, we take a consultative approach to determine why companies want to relocate or identify key gaps, and this is a particular area where we can show businesses the value that exists for them in Ohio."
In addition to a lack of corporate tax, Ohio also has an extremely reasonable income tax rate ranging from 0 percent to 3.99 percent depending on taxable income. Not only can employers avoid the additional corporate tax, but employees in the state of Ohio aren't subjected to lower wages that accompany a corporate tax or income tax rates that drastically affect their quality of pay or living.
2. Affordable cost of living.
During a relocation, businesses also need to consider locations that are both affordable and desirable for the employees that follow the business. According to JobsOhio, the cost of living in Ohio is 7.5 percent lower than the national average, and the average cost of housing is 65 percent less than cities like San Francisco.
"As the workforce continues to move to Ohio, the cost of living remains steady, and new housing developments are being converted from open land to provide significant opportunity for real estate," Rock says.
Additionally, businesses seeking a relocation to Ohio don't have to sacrifice the city-life appeal since Ohio offers 16 metropolitan statistical areas that maintain the affordable housing and rent opportunities. With Ohio ranked as the #1 affordable state in the U.S., businesses looking to relocate can capitalize on financial opportunities that are beneficial to both the success of business and quality of life for employees.
3. Booming economic development.
At the core of a relocation, success is found not only in how the business profits in a new location, but how that location sets them up to prosper, too. Areas with strong economic development initiatives can help retain and enhance existing businesses, as well as attract and grow new businesses.
Ohio is ranked #2 in terms of economic development projects, and at JobsOhio we are continuing to drive economic development across the state. We have evolved to include programs that can help companies enter our ecosystem, expand operations, and create new jobs," Rock says.
For example, JobsOhio offers multiple grants and access to funds for prospective businesses which help enable them to relocate and thrive in the Buckeye State. And with JobsOhio also seeking to create Innovation Centers in cities across Ohio, companies can tap into these talent pools to expand operations and keep their workforce in Ohio as they grow.
Click here to learn more about how your business can grow and thrive in Ohio.