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What do you need to succeed in business? It might depend on where you set up shop — and we’re not just talking about the right street corner either.

“The truth is, tax laws, cost of living, and median household income can all play a role in how your business fares in the long run,” says Looka, an artificial intelligence-powered graphic design company that recently released an analysis of the best states for entrepreneurs.

Those factors were combined with data on how often businesses succeed and what percentage of businesses are new in each state to establish the ranking.

Here’s a look at the top states to start a business.

1. California

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California can be an expensive place to live, but it’s also where small businesses are most likely to survive, Looka says. We previously noted two California metros among the “10 Top Cities for Women Entrepreneurs.”

2. Texas

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Everything’s bigger in Texas, except apparently the cost of living and personal income tax. If you’re looking for a more specific area to earn your…

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