With no individual or corporate income tax, South Dakota stands out as one of the most affordable states to start a business, according to a new report by a business formation services provider.

The cost of starting a business can vary greatly by state, but some set themselves apart by "combining tax advantages, lower ongoing filing costs, business-friendly regulatory systems and statewide or regional business incentives," according to Northwest Registered Agent , a nationwide provider of registered agent and business filing services.

The company's rankings , which looked at startup costs, tax exposure and regulatory requirements in each state, named South Dakota as the second-best state to start a business, behind only Wyoming.

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