May 6, 2022

South Dakota is named among the best states to start an e-commerce business, according to a recent analysis by digital commerce company Nexcess.

It ranked the state fifth, with a near-perfect economic outlook score, and just below Texas. Florida was named the top state.

Here’s a breakdown of how South Dakota fared by category:

• Overall score: 7.17
• Tax climate score: 6.93
• Economic outlook score: 9.81
• Infrastructure score: 4.27
• Financial resources score: 8.16

“The state ranked No. 4 on the SBPI and No. 8 for its five-year new business survival rate. Financial resource availability fared highly as the state ranked No. 2 for SBA loan availability,” the report said.

“South Dakota hit some snags regarding its infrastructure and tax climate scores. It ranked third to last — 47 — in bridge quality and fared poorly in its internet access rank — 39. Out of all four categories analyzed to derive its final tax climate score, individual income and corporate tax rates ranked No. 1. However, the state’s sales tax and unemployment insurance tax ranks fell short, landing in spots 34 and 38, respectively.”

To see the full rankings, click here.