What Costs to Expect When Selling Your Home

Just as with buying a home, selling also comes with its share of dues. You need to prepare your home for prospective buyers as well as pay part of the closing costs, which average around 3% of the home price. Here’s a breakdown of the types of costs you can expect.

Home repairs and inspections: Before the sale, you’ll probably want to fix up carpet stains, window cracks or other home features that have suffered minor damage over time. You also might decide to pay for an inspection for termites or other pests to avoid any unpleasant experience for prospective buyers checking the home.

Staging: To impress buyers, hiring a professional home decorator or stager can help you organize and make your home more appealing. You might also get higher bids on the home this way.

Settlement company fees: If you decide to use a third-party settlement company to ensure all documents and procedures between you and the buyer are correct, you pay the company for your portion of the closing costs and potentially an administrative cost. In return, the company will pay off your mortgage and those closing fees to the lender.

Real estate commission: Generally, you have to pay for the real estate fees for both your agent and the buyer’s agent. The cost can be negotiated, but it typically ranges between 5% and 7% of the home price, split between agents. The money goes to the agents’ brokerages, who will then pay them. This commission can be one of your biggest expenses.

Attorney fees: Lawyers can be certified as real property specialists and in some states might be required to help close a home sale.

Property taxes: Ideally, the buyer and seller pay their respective shares of the property taxes for when they lived in the home that year. Depending on when you sell, you might pay all taxes for that year and have the buyer reimburse you for the time he started living there. Additionally, if your home increased in value more than a certain amount, you might have to pay a capital gains tax.

Seller’s concession: If the buyer is having trouble paying for some of the closing costs, the seller can agree to pay a percentage of them. In exchange, that amount can be added into the home price the buyer pays.

Title search: Although the title search is generally the buyer’s responsibility, you might decide to pay for it as part of the deal. The title search involves a professional reviewing public records to confirm you own the property that you’re selling and that no unpaid dues interfere with your title of ownership.

Lien releases: From the title search, you might discover that some debt hasn’t been paid. If you owe any taxes, contractor costs, utilities or other bills on your home, you’ll receive a lien, or a record of any unpaid amount on your home. You must pay it off to clear your title and be able to sell your home.

Owner’s title insurance: If the title search misses something, a lien remains unpaid or the seller doesn’t actually own the property, this insurance protects the buyer from any financial loss. The seller generally pays for this.

Home warranty: As part of the negotiation with the buyer, you might decide to pay for a one-year protection plan on the buyer’s behalf. This will cover certain repair costs if needed.

Knowing the possible costs when selling your home can keep the process straightforward. Despite being potentially expensive and time-consuming, selling at a good price and without complications can save you time and energy.

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Five Free Budgeting Apps for Your Smartphone

Whether you’ve had your eye on a sharp pair of shades at the mall or are in desperate need of a coffee on your way to work, sticking to your budget can be a challenge. That’s why it’s important to  take advantage of all the help you can get.

The following free mobile apps, all of which are available for both iOS and Android, can go a long way in preventing unnecessary dents in your bank account.

Spending Tracker

As its name suggests, this app lets users create and monitor budgets for weekly, monthly, and annual expenses, organizing them in categories like gas, groceries, and clothing. Spending Tracker lets you sort through past purchases by date, name, or amount, which is useful if you want to find out what you splurged on, and when. This app should be especially handy for consumers who want to get a better sense of how they could cut back on their spending.

Level Money

A slick, easy-to-use app, Level Money lets users connect all their bank and credit card accounts to its system and provides automatic updates whenever they buy something with their plastic. This app uses the same security measures as banks and other financial institutions, which means your personal information should be well-protected. Level Money relies on simple but effective pie charts to show consumers how much money is left in their daily, weekly, and monthly budgets in categories like groceries and transportation. These graphics are also updated whenever you make a purchase using your credit or debit card.

GoodBudget

GoodBudget lets partners and family members sync their budgets across multiple devices and the Web, so when money is deducted from a particular category, everyone knows how much has been spent. That makes this app ideal for families as well as for couples who’ve just moved in together. GoodBudget splits your monthly expenses into digital “envelopes” for which you can choose the categories. It shows how much of the allocated money is left in each envelope after users plug in whatever purchases they’ve made throughout the week — which needs to be done manually because bank accounts can’t be linked to the app.

Pocket Expense

In addition to letting you monitor your budget, Pocket Expense gives you the option of tracking your bills, and it even sends alerts when a payment due date is approaching. Its calendar, which closely resembles that of the iPhone, is one of its best features. Users can scroll through it to figure out which days they tend to overspend on, and can therefore identify recurring spending habits that need to be fixed.

Wally

Another simple, user-friendly app, Wally uses a no-frills layout to help users stay on top of their budgets. Its scan feature is an especially nice touch, as it lets users take pictures of receipts before automatically pulling the most pertinent information from them, like the amount spent and the date of the transaction. Wally lets users set savings goals and notifies them when they’ve been achieved.

The bottom line

It may not always be easy, but adhering to your budget is one of the best money moves you can make. The name of the game is staying disciplined and keeping an eye on your expenses to figure out where you might have slipped up. Although it’s ultimately up to you to stay on track, these apps can provide plenty of support along the way.

Tony Armstrong is a staff writer covering personal finance for NerdWallet. Follow him on Twitter @tonystrongarm and on Google+.

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The Benefits of Being a B Corporation

If one of the goals for your small business is to create better jobs and improve the quality of life in your community, then you may want to join the growing number of companies worldwide that have sought B-corporation status.  Becoming certified as a B corporation is a way to let investors, customers and members of your community know that your company uses best practices when it comes to sustainability.

The “B” in B corporation stands for “benefit,” and certified companies agree to benefit their community by being held to a higher standard of transparency, accountability and performance, says Amy George, co-founder of Blue Avocado, a B corporation based in Austin, Texas, that sells fashionable, reusable shopping and lunch bags. “I wanted to start a company that made being green affordable and easy,” she says. Becoming a certified B corporation is a way to show that Blue Avocado is reaching those goals, she says.

Blue Avocado (re)zip bag

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Before co-founding Blue Avocado, George worked as a sustainability consultant for Fortune 500 companies, helping them develop global impact reports, which show investors and customers how those large companies benefit their communities. “For a long time, there wasn’t a template like this for small business,” George says.

Now, B Lab, the nonprofit that certifies B corporations, has created a way for smaller companies to be certified by a third party to highlight their sustainability efforts, she says.  The company, which started in 2006, has certified over 1,000 companies as B corporations, in industries from accounting services to waste management.  While the certification option can be especially helpful for small businesses, it’s worth noting that many larger companies are also B corps, including Patagonia and Ben & Jerry’s.

According to B Lab, member companies must publicly declare that they have a responsibility to benefit the interests of their employees, community and environment, as well as their shareholders.

There is generally no special tax treatment given to B corporations. You would still need to form your company as a sole proprietorship, partnership, or corporation. If your company is a corporation, however, you may need to amend your articles of incorporation to show that your company considers its impact on the community in addition to shareholders.

Even though it’s not separate business structure, about 26 states recognize the legal status of a B corporation, which can help legitimize your articles of incorporation.

Here’s how your company can join the ranks:

1. Take the Quick Assessment

Before you officially apply for status as a B corporation, you can go to the B Lab website and take a Quick Impact Assessment survey to see where your company stands when it comes to best practices.  Ideally, the survey would be completed by a founder, CEO or other company leader, George says.

The quick assessment is roughly 75 to 100 questions, and it can be finished in about 20 minutes, she  says.  Completing the survey will help you determine how close your company may be to qualifying for B-corporation status.

2. Complete a self-audit

Once you are confident that your company would be a candidate for B-corporation certification, the next step is to take a longer self-audit, called the B Impact Assessment.  This assessment typically takes about an hour and half, though it doesn’t have to be done in one sitting, George says. However, she recommends that a company’s leadership block out a day or so to go over the questions in the assessment, because a lot of them will involve companywide policies, which company leaders will need to discuss.  “It’s more than an audit, it’s a strategy conversation,” George says.

You may be asked questions about your wage structure, promotion policies and how many local suppliers you use, says Seth Gross, principal at Bull City Burger and Brewery in Durham, North Carolina. His restaurant was the first one in the state to receive B-corporation status.

“We were asked how many of our ingredients came from local farms, and I’d have to gather proof to show that we are buying local, and that the majority of our ingredients come from local farms,” Gross says.

You’ll also probably be asked to provide supporting documentation and other paperwork.  Gross says he provided payroll records to show that his restaurant pays fair wages, promotes from within and that percentage-wise, management salaries are not excessively higher than other employees’ compensation.  (In many companies, CEO salaries have risen sharply while employee pay has been flat or decreased, and this has had a negative impact on the workforce).

After you turn in the self-audit to B Lab, you can expect to hear from them within a week, George says. Your answers will be examined and checked against those from other companies that also have applied to see if there are any responses that seem unusual or statistically unlikely, she says.  You may be asked to follow up and clarify some of your responses.

“It’s a lot of work, and so the reason for doing it has to be because you really want to,” Gross says. “It’s easy to just say ‘we support local,’ but this is a way to show that you are putting your money where your mouth is.”

3. Sign the B Corp Declaration of Independence and Term Sheet

To be certified, you need to score 80 out of a possible 200 points on your audit. Once B Lab determines that your business meets that standard, you’ll be asked to sign a B Corporation Declaration of Independence and Term Sheet documents.  The term for B-corporation status is two years, and after that you will need to recertify.

The fee for B-corp status is based on annual sales, with a minimum of $500. To keep certification, the company must pay a renewal fee each year and recertify every two years.

4. Spread the word and continue to support your community

You would seek B-corp status because you want to make a positive change in your community, and the work doesn’t stop with the signed declaration, Gross says. He continues his sustainability efforts by supporting organizations such as ShopLocal Raleigh and Sustain-a-Bull, which support locally owned small businesses (Durham’s nickname is “Bull City.”).

“In our community there is a strong grass-roots movement to buying local.  I’d recommend to other business owners look for similar organizations in their communities,” he says.

Once you have a B corporation, your efforts can be combined with these other organizations to have a bigger effect in your community, George says.  “You’re in a different group of likeminded people that deliver more than just economic impact, locally and internationally,” she says.

For more information about how to start and run a business, visit NerdWallet’s Small Business Guide. For free, personalized answers to questions about starting and financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.

Margarette Burnette is a staff writer covering personal finance for NerdWallet. Follow her on Twitter @margarette and on Google+.

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Top photo, from left, Amy George, Melissa Nathan, and Paige Davis.

All photos courtesy of Blue Avocado.

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How to Get Entry-Level Tech Jobs in San Francisco

San Francisco is one of the hottest cities for new grads who want to work in tech, and for good reason. The number of employees in San Francisco who work in computer and mathematical occupations is more than twice the national average, according to the Bureau of Labor Statistics — plus, they earn an average salary of $103,780 a year.

There are plenty of jobs in San Francisco that will give you the chance to explore the tech scene, whether or not you studied computer science. The trick is breaking in. So what are your options? Let’s take a look at some of the most popular entry-level jobs in tech.

If you’re looking for a software engineering job: Try developer, engineer or programmer roles with “Level I” or “Entry-Level” in the title. If you’ve done internships or taken courses on programs like C++ or Ruby on Rails, focus your search on position descriptions that mention those specific skill sets.

Economics or statistics majors might enjoy analyst roles, says Jaimie Lynn Craig, senior recruiter at Premier Staffing in San Francisco. Employers are especially interested in candidates with advanced data analysis and Excel experience. “They love to see on your resume that you know how to use pivot tables,” she says.

If you’re looking for a non-tech role: “Anything with the title ‘coordinator’ or ‘associate’ that requires one to two years [of experience], that’s your way in,” Craig says. Start out as a marketing coordinator or assistant to a product manager to learn the ropes.

“Go and assist that person and be their apprentice, just like they did in old-school Italy.” — Jaimie Lynn Craig, recruiter

Landing an entry-level tech job in San Francisco is all about getting your name out there and meeting as many people as possible, says Wendy Saccuzzo, director of career development at San Francisco-based nonprofit Women Who Code and a tech recruiter at Riviera Partners. Follow these steps to get your foot in the door at a company you’ll love.

Step 1: Set goals

“Maybe you don’t know what you want to be when you grow up, but set a goal for what you want to be in your first year,” Saccuzzo says.

Decide what you want to accomplish at your first job and create a list of three to five companies that will help you meet that goal, Saccuzzo says. Perhaps you studied communications or marketing in undergrad and you’re interested in helping tech companies build their brands. If you were an art major, maybe you’re thinking about a career in user experience (UX) design. Once you have a few target companies in mind, start making connections one by one.

“Create a game plan for how you would network your way into the company.” — Wendy Saccuzzo, tech recruiter

Step 2: Network

LinkedIn is the best place to up your networking game. Fill out your profile with your job, internship and campus leadership experience. Join alumni groups or search for industry groups that align with the tech job you’re looking for. Go to Interests > Groups at the top of the LinkedIn homepage and click “Find a group” on the next page.

Then start messaging. Contact people in your network who have jobs similar to the ones you want. Reply privately to someone who has published a blog post you like on one of your LinkedIn groups; in that case, you don’t have to be connected to that person directly to reach out, Saccuzzo says.

Pro tip: Search for fellow alumni in the Connections > Find Alumni drop-down menu at the top of your profile. You can message people who also graduated from your college even if they’re not in your first-degree LinkedIn network.

Step 3: Know what you’re getting into

You’ve met for coffee with connections you’ve made, you’ve gotten referrals for a few jobs in San Francisco and you’re ready to interview. But before you commit to working for a tech company, research the CEO and the organization’s track record.

Especially if you’re interested in working for an early-stage startup, get a sense for who the founders are and whether they’ve had experience building successful companies. Search databases like crunchbase.com to see how the company is funded. Every job seeker is comfortable with a different level of riskiness, says Saccuzzo, but it’s always a good idea to ensure you trust the leader’s decision-making before you sign on the dotted line.

“It’s really important to make sure the executive knows what they’re doing and that they’re heading in the right direction,” she says.

What’s next?

Both Saccuzzo and Craig suggest taking stock of what companies and career paths are out there by going to San Francisco-area meetups. “We’re a hotbed for meetups here in the Bay Area,” Saccuzzo says.

Search for San Francisco groups on meetup.com by typing in the tech track or position you’re interested in — “product management,” for instance, or “web developer.” Go to relevant meetups and plan to have at least one meaningful conversation with a fellow attendee. Connect with him or her on LinkedIn the next day and start building your network of contacts in the area. And most importantly, stay positive and willing to work hard. “Attitude trumps experience,” Craig says. “When you don’t have experience, your attitude is going to win.”

Brianna McGurran is a staff writer covering education and life after college for NerdWallet. Follow her on Twitter.

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5 Ways to Recover After Your Car Is Repossessed

When your car is repossessed, you may not even know why it happened — or how you’re going to get to work the next day. But what you do next – whether you decide to reinstate the loan, pay what you owe or ignore everything – may have long-term credit consequences. Here’s what you can do to take care of your transportation needs and protect your credit from further damage:

1. Ask why your car was repossessed

If you’ve fallen behind on car payments, you may know exactly why your car was repossessed. Other times, it’s not so obvious. In some states, not getting insurance stipulated in a loan or lease contract can count as a default, and your car can be repossessed because of it. Call your lender before jumping to conclusions so you can clarify how you can set things straight.

2. Find out if you can get it back

Often, a bank or repossession company will let you get your car back if you pay back the loan in full, along with all the repossession costs, before it’s sold at auction. You can sometimes reinstate the loan and work out a new payment plan, too. The repossession may not be removed from your credit report in these situations, but your new payments will generally be reflected if you make a deal with your lender (but not if you buy the car back at auction). Before getting your car back, think through these questions:

If you got your car back, would you be able to afford insurance, maintenance and gas? Neglecting important repairs or getting into an accident while uninsured may land you in an even more difficult financial situation. And without gas, you still wouldn’t be able to get from A to B. If you can’t afford these expenses, redeeming your car may not be your most cost-effective alternative.

Do you have access to affordable public transportation or a carpool? Getting to work by bus or other means may be a better option than reinstating your loan or paying your balance and repossession expenses in full.

Are you going to declare bankruptcy? If you’re extremely behind on all your bills and have no way of turning things around, you may already be considering bankruptcy.  File before the bank or repo agency sells your car, and there’s a good chance you can keep your car and work out a plan to catch up on payments. Talk to your bankruptcy lawyer about whether this would be possible, based on the type of bankruptcy you’re filing.

3. Know your rights

Even when your car is towed away, you still have certain protections:

The lender or repo agency can repossess the car but not the items inside. If you left your world-class CD collection on the front seat, for instance, the lender can’t keep or sell it. In some states, the bank or repo agency may be required to give you a list of items inside the car and tell you how you can retrieve them. If that’s not the case, you may have to ask. Generally, this does not apply to accessories you may have installed in the car, such as new rims or a souped-up audio system.

Your property shouldn’t be damaged in the process. If your car is locked in your garage, for example, a repo agent can’t break down your garage door to get your car. Such actions would generally be considered “breaching the peace.” If you feel that your rights have been violated, consider contacting a consumer lawyer.

4. If the car is sold, ask if you still owe money

When a bank or repo agency repossesses your car and sells it at auction, you might think that you don’t owe any more money on it. That’s not always the case. Say a bank gave you a $10,000 car loan and you still owed $9,000 on it when you defaulted. If the repossessed car sold at auction for $7,000, you’d still owe $2,000 on the car, plus repossession expenses, in some cases. This is called a deficiency balance.

Deficiency balances are common, especially when your auto loan was for a new car. You can sometimes lose about 10% of a new car’s value just by driving it out of the lot. Even so, the lender or repossession company still has the responsibility to conduct the sale in a “commercially reasonable manner.” If the repossessed car is sold for a price far less than the fair market value, you may be able to dispute the high deficiency balance in court.

If you ignore this deficiency balance entirely, the account may be sent to collections. The lender can also sue you for this balance, generally, if the debt is within the statute of limitations. Accounts in collections and public judgments can stay on your credit report for seven years, so if you have the money, it’s usually a good idea to pay off the remainder to minimize the damage to your credit.

5. Work on improving your credit

A repossession typically stays on your credit report for up to seven years, so a big part of boosting your credit afterward is just waiting. But you can also be proactive in building your credit by paying your bills on time and chipping away at your existing balances. This way, by the time your negative history comes off the record, your credit score will be much higher than before, and you’ll be in a better position to rebuild.

Claire Davidson is a staff writer covering personal finance for NerdWallet. Follow her on Twitter @ideclaire7 and on Google+.

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Cities Where the Middle Class is Rising

The middle class in America has long been called one of the strongest and most powerful middle classes in the world. In recent decades, however, the U.S. middle class has been shrinking, and in the past few years, stagnant income growth has been a major reason.

U.S. households have seen different rates of growth in earnings over the past 40 years depending on their income group. The table below shows the change in average household income, adjusted for inflation, from 1973 to 2013 for different income groups: the 20% in the lowest-earning group, the middle 60% we identified as the middle class and the highest-earning 20%, which includes the top 5% of households.

While the top 5% of U.S. households saw an astronomical increase in average income — 81.1% growth from 1973 to 2013 — those at the bottom suffered an 8.4% drop in average earnings. Meanwhile, middle-class households have witnessed a modest income growth of 17.6% in those decades.

However, the rate of growth for middle-class income has slowed significantly since the 1990s. In fact, since peaking in 2007, the average income of middle-class households has fallen about 6.8%, while the nation’s richest saw a 0.8% increase in average income. Over those seven years, the nation’s poorest households got significantly poorer, with average incomes falling 10.8%.

While the middle class is still the largest group in the country, it may no longer be the most powerful. In 2013, the highest-earning 20% of households controlled 51.4% of household income in the U.S., while the middle class owned of 45.4% of income.

To analyze the state of the middle class, NerdWallet examined the data for 1,946 U.S. cities to find where average middle-class income increased the most from 2007 to 2013. In our analysis, we viewed each city as a microcosm to identify the middle 60% of earning households. We investigated the following factors:

Growth in middle-class prosperity. We considered the strength of the middle class in each city by analyzing the share of total household income owned by middle-class households. We also examined the growth in the share of aggregate income since 2007 for the middle class and the growth in average middle-class household income to find the cities on the rise.

Middle-class income and affordability. We analyzed the average income of households in the middle 60% of earners. We also included average monthly housing costs in each city to assess affordability for middle-class families.

 

Top 100 cities where the middle class is rising

Urban vs. suburban middle class

Nearly all of the places where the middle class is growing stronger are small cities. In fact, the largest of the top 100 places is Frisco, Texas, which can be considered a midsized city. So what’s happening with middle-class population in urban America?

The numbers reveal a clear difference between the urban middle class and the middle class in the nation’s suburbs and small cities. The middle class in large cities, with populations of 200,000 or higher, owns 46% of total household income in those areas. Meanwhile, the middle class in small cities, places with populations under 75,000, has 49% of household income.

In large cities, the average middle-class income of about $52,194 is 16% lower than the average household income of $62,150 earned by the middle class in smaller cities.

These figures reflect a narrative that has long existed — that suburbia is a friendlier place for the middle class than large urban centers and the challenges of those locations, such as cost of living, safety and quality of schools.

The chart below displays the middle-class share of total household income, change in middle-class share of income, change in middle-class household income, average middle-class household income and average monthly housing costs of the 20 largest cities in the U.S.

Of these urban centers, only Fort Worth, Texas, has experienced growth in middle-class share of aggregate household income since 2007. San Francisco, California, and Austin and El Paso, Texas, are the only cities in this group that saw an increase in average middle-class household income.

Methodology

All income data are from the U.S. Census Bureau’s American Community Survey. Incomes for 2007 were adjusted for inflation to reflect 2013 dollars using inflation rates from the Bureau of Labor Statistics. The score for each city is from the following variables:

1. Middle-class share of total household income is 25% of the score.
2. 2007-2013 change in middle-class share of total household income is 25% of the score.
3. 2007-2013 change in average middle-class household income is 25%.
4. Average middle-class household income is 12.5% of the score.
5. Monthly housing costs are 12.5% of the score.

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The Best Places to Start a Business in Ohio

Throughout the late 19th and early 20th centuries, Ohio occupied the center of America’s industrial heart. The burgeoning United States economy couldn’t get enough of the region’s cars and steel, and in turn, Ohio and other states provided a virtually endless stream of jobs in its workshops and factories.

In the second half of the 20th century, however, the region fell into decline, as manufacturing output required less labor input, and companies left the Great Lakes states for the warmer climes of the Sun Belt. The entire region was categorized economically dead as factories closed and traditionally middle-class manufacturing jobs disappeared.

But what really happened wasn’t quite that simple. Although it’s true the number of manufacturing jobs has declined, Ohio remains one of the country’s most productive states. Photos of rusted, abandoned factories paint a dire picture, but companies and communities adjusted, and the Ohio economy proved to be more resilient and dynamic than portrayed.

The economy has changed, but several trends show that Ohio is anything but in decline:

A strong labor market: The statewide unemployment rate in Ohio touched 12% in January 2010, a couple of points higher than the national peak of 10% in October 2009. Since then, the unemployment rate in the Buckeye State has fallen to 5.4%, as of March 2015 — below the national rate of 5.5%.

Manufacturing output: Although it is true that manufacturing jobs have decreased from around 22% of all jobs in Ohio in 1990 to 12.6% now, this is still a higher proportion of manufacturing jobs than the national average of 10.4%. Ohio more than pulls its weight in output as well — the state makes up 3.4% of the U.S. gross domestic product but is responsible for 4.8% of its manufacturing output.

To put it another way, the state’s GDP of $565 billion in 2013 would make it the 27th largest economy in the world if Ohio were its own country. And with 25 Fortune 500 companies based in Ohio, there is a strong existing business infrastructure to draw on. These qualities of size and strength present potential entrepreneurs with plenty of opportunities in the Buckeye State.

Where are the best places to start a business in Ohio?

To find the best places to start a business in Ohio, NerdWallet examined communities with more than 500 businesses and a population of at least 5,000. These businesses range in size from sole proprietorships to large companies. We used two categories with a total of six variables for our analysis.

Business climate. NerdWallet analyzed the average revenue of businesses, the percentage of businesses with paid employees and the number of businesses per 100 people. A higher measure for each variable indicates a more business-friendly environment.

A majority of businesses in the U.S. — and in Ohio — are made up of one person and don’t have paid employees.

Local economic health. We looked at annual median income, monthly median housing costs and unemployment rates for each community. We analyzed income and housing costs, so areas with a high median income and low housing costs scored higher. We examined the unemployment rate to see whether a community’s economy supported business success. A lower unemployment rate scored higher.

NerdWallet’s key takeaways

Greater Cincinnati is a hot spot. Four cities in the top 10 are in Hamilton County, where Cincinnati is located. Cincinnati is home to nine Fortune 500 companies, making this a strong and established business environment.

Small cities dominate. The average population of the top 10 cities is 10,303, significantly less than the statewide average of 28,470. This means entrepreneurs can network through the entire business community in many of these cities.

Top communities are highly entrepreneurial. The top 10 have, on average, 14.92 businesses per 100 people, well above the statewide average of 9.03, meaning business owners are highly concentrated in many of these cities.

Best places to start a business in Ohio

1. Blue Ash

With the highest concentration of businesses relative to population in the state of Ohio (24.19 businesses per 100 residents), Blue Ash takes the top spot as the best place to start a business in the Buckeye State. This Hamilton County community 15 miles northeast of Cincinnati also has provided business opportunities for many well-known entrepreneurs — multinationals such as Coca-Cola, Procter & Gamble Co. and Toyota have operations in Blue Ash, and the city is the headquarters of The J. Peterman Co., the clothier made famous by the TV show “Seinfeld.”

2. Independence

The top-ranked northern Ohio city, Independence is a state hub for information services and tech companies. Independence is home to satellite offices of tech giants Microsoft and EMC, which has provided entrepreneurs an established pool of talent and opportunity. The city is also expanding its high-speed fiber-optic network, an amenity that has proved to be a job magnet in other markets such as Chattanooga, Tennessee.

3. Moraine

This Dayton suburb of 6,314 holds the distinction of having the highest average revenue per business in the state, so there are plenty of opportunities for entrepreneurs to tap into an established business community. This environment has also continued to be attractive to established businesses — the city recently announced that Fuyao Glass America Inc. planned to hire 1,550 workers and invest $360 million into a plant in Moraine.

4. Beachwood

With 20.88 businesses per 100 residents, Beachwood, 10 miles east of Cleveland, is one of the most entrepreneurial places in the state. This enterprising spirit has led to the lowest unemployment rate in the top 10, at 2.1%. It should come as no surprise, then, that the Beachwood Chamber of Commerce holds monthly networking events to foster this pioneering business environment.

5. Fairlawn

As the home of the UH Fairlawn Health Center and Summa Health System, Fairlawn is developing into a regional hub for health care. Fairlawn has clearly benefited from the growing health-care industry, as indicated by the community’s 3% unemployment rate — the second lowest in the top 10.

6. Sharonville

Sharonville is Blue Ash’s neighbor to the northwest, and like its Hamilton County neighbor, it is something of a regional destination for business and opportunity. First, the city has the second-highest proportion of businesses with paid employees in the state, at 54.73%. This indicates that Sharonville is full of established, successful employers, rather than individual proprietors. Second, the town draws talent from the entire region. The city is proud of this strong business environment, boasting on its website that the population of Sharonville is 13,500 — but 39,000 during the daytime.

7. Kenwood

Kenwood is the third Hamilton County community in the top 10. Just south of Blue Ash, Kenwood has a well-balanced local business environment. It scores high in businesses with paid employees (49.95%), and the unemployment rate of 4.6% is below the top 10 average of 4.8%. The town itself provides a strong and steady economic environment — of the four Hamilton County communities in the top 10, Kenwood has the highest median annual income, at $63,063.

8. Oregon

Oregon was recently in the news because it temporarily changed its name before the Oregon Ducks played the Ohio State Buckeyes in the 2015 college football national championship. Business owners, however, have taken notice of this Toledo suburb for other reasons: Oregon’s 1,102 businesses have the second-highest average revenue per business in the state, behind only Moraine. Business owners can also count on local support to help build and grow in Oregon. For the last 22 years, the Oregon Economic Development Foundation has helped shape the local economic landscape.

9. Springdale

The fourth Hamilton County community in the top 10, Springdale — like its neighbors — has a high proportion of businesses with paid employees (52.29%, which beats the statewide average of 29.99% by a notable margin). The city also has a stronger than average labor market, with an unemployment rate of 4.9%, compared with the statewide average of 5.9% (as of the 2013 American Community Survey). To help foster a strong business environment, Springdale provides financing and tax incentives to help businesses create jobs and grow in the community.

10. Ontario

Ontario is about halfway between Columbus and Cleveland, which makes it the top 10 city farthest from one of Ohio’s major population centers. This community of 6,172 residents, however, has seen strong growth in recent years, attracting employers by way of incentives including the Ontario Job Creation Tax Credit. The project has worked well — for example, Cole Tooling & Stamping moved to Ontario from nearby Mansfield, and the company reportedly expects to see a 25% increase in jobs “over the next few years, each year.”

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Best places to start a business in Ohio

 

Rank	City	Population	Number of businesses	Average revenue per business	Percentage of businesses with paid employees	Businesses per 100 people	Unemployment rate	Overall score
1	Blue Ash	12,116	2,931	$4,377,407	48.17%	24.19	5.30%	71.58
2	Independence	7,123	1,458	$4,903,249	50.75%	20.47	4.70%	71.35
3	Moraine	6,314	938	$9,410,111	51.07%	14.86	8.40%	70.44
4	Beachwood	11,884	2,481	$2,481,222	48.41%	20.88	2.10%	69.83
5	Fairlawn	7,427	1,356	$2,423,739	50.66%	18.26	3.00%	66.77
6	Sharonville	13,898	1,460	$5,259,934	54.73%	10.51	4.60%	65.30
7	Kenwood	6,671	983	$1,763,341	49.95%	14.74	4.60%	58.65
8	Oregon	20,255	1,102	$9,216,269	37.66%	5.44	5.50%	58.58
9	Springdale	11,171	1,113	$3,709,226	52.29%	9.96	4.90%	58.11
10	Ontario	6,172	614	$2,313,077	52.44%	9.95	4.90%	56.41
11	Milford	6,715	812	$1,211,044	46.67%	12.09	2.70%	55.09
12	Worthington	13,521	2,527	$1,311,554	31.70%	18.69	2.90%	54.42
13	Upper Sandusky	6,844	612	$1,579,899	55.23%	8.94	5.80%	53.95
14	Maumee	14,212	1,899	$2,638,319	39.44%	13.36	4.50%	53.04
15	St. Clairsville	5,158	900	$575,632	30.22%	17.45	1.90%	51.48
16	Solon	23,214	3,245	$2,818,962	34.73%	13.98	4.70%	51.30
17	Chardon	5,162	908	$1,006,111	34.91%	17.59	4.50%	50.19
18	Montgomery	10,283	1,632	$2,492,042	25.00%	15.87	3.50%	50.08
19	Dublin	41,958	5,360	$3,337,720	27.20%	12.77	3.30%	49.63
20	Middleburg Heights	15,863	1,838	$1,763,982	40.37%	11.59	5.80%	49.51
21	Hillsboro	6,598	510	$1,756,365	54.12%	7.73	9.10%	48.95
22	Willoughby	22,334	2,521	$1,481,314	39.27%	11.29	4.60%	48.43
23	Rocky River	20,107	1,986	$484,131	37.06%	9.88	3.30%	48.06
24	Coshocton	11,223	818	$1,561,793	45.23%	7.29	5.50%	47.69
25	Westlake	32,552	3,987	$1,227,554	32.46%	12.25	3.50%	47.49
26	Brecksville	13,584	1,652	$1,559,279	33.35%	12.16	4.20%	47.49
27	Bedford Heights	10,699	842	$3,725,711	46.91%	7.87	9.90%	47.35
28	Highland Heights	8,315	1,088	$2,038,608	29.32%	13.08	3.20%	47.07
29	Zanesville	25,481	1,958	$2,270,849	46.22%	7.68	7.20%	47.00
30	Twinsburg	18,765	2,060	$2,167,792	30.58%	10.98	3.30%	46.62
31	Steubenville	18,525	1,322	$1,086,497	41.53%	7.14	4.10%	46.36
32	Streetsboro	16,043	952	$3,022,471	39.81%	5.93	4.60%	46.13
33	Dover	12,828	847	$1,497,519	43.45%	6.60	5.10%	45.94
34	Oxford	21,608	707	$735,446	49.22%	3.27	3.50%	45.44
35	Forestville	10,298	1,109	$894,995	30.30%	10.77	3.20%	45.20
36	Franklin	11,825	726	$2,862,231	43.94%	6.14	7.60%	45.07
37	Mayfield Heights	19,029	2,061	$2,637,858	26.25%	10.83	3.40%	45.02
38	St. Marys	8,232	954	$1,211,709	34.80%	11.59	5.50%	44.99
39	Landen	7,005	1,486	$305,814	20.12%	21.21	4.00%	44.92
40	Mentor	47,134	5,112	$1,175,734	34.00%	10.85	4.20%	44.76
41	Wooster	26,260	2,163	$1,613,607	35.83%	8.24	4.00%	44.49
42	Marietta	14,067	1,582	$1,388,175	33.57%	11.25	5.60%	44.29
43	Vandalia	15,206	1,055	$2,511,343	38.86%	6.94	6.50%	44.14
44	Geneva	6,175	569	$667,722	42.00%	9.21	6.60%	43.86
45	Napoleon	9,000	759	$1,678,353	39.66%	8.43	8.10%	43.80
46	Boardman	35,173	3,676	$661,086	33.87%	10.45	4.40%	43.74
47	Cambridge	10,622	940	$1,202,455	39.26%	8.85	6.30%	43.72
48	Washington Court House	14,139	912	$3,954,924	33.66%	6.45	6.30%	43.65
49	Belpre	6,440	635	$1,599,975	32.13%	9.86	4.50%	43.64
50	Granville	5,659	681	$380,727	30.40%	12.03	3.70%	43.62
51	Harrison	10,054	983	$1,176,724	36.01%	9.78	5.60%	43.51
52	Grandview Heights	6,695	897	$764,246	26.98%	13.40	2.70%	43.17
53	Howland Center	6,554	541	$445,575	36.97%	8.25	4.00%	43.13
54	Bellbrook	7,008	863	$648,528	32.68%	12.31	5.40%	43.12
55	Hudson	22,335	3,087	$954,637	23.32%	13.82	3.50%	43.09
56	Canal Fulton	5,480	589	$414,063	34.80%	10.75	4.90%	42.82
57	Jackson	6,363	764	$2,247,690	26.57%	12.01	5.00%	42.67
58	Mount Vernon	16,947	1,098	$1,982,706	39.80%	6.48	6.20%	42.52
59	Westerville	36,778	4,926	$1,093,418	23.57%	13.39	3.20%	42.50
60	Heath	10,351	727	$2,174,103	33.43%	7.02	4.60%	42.45
61	Mansfield	47,360	3,740	$1,444,200	38.93%	7.90	6.90%	42.41
62	London	9,892	600	$2,497,775	34.67%	6.07	4.90%	42.28
63	Huron	7,133	622	$716,291	36.17%	8.72	4.90%	42.28
64	Urbana	11,669	655	$1,754,258	44.27%	5.61	8.60%	42.28
65	Portsmouth	20,357	1,554	$964,723	36.87%	7.63	5.40%	42.23
66	Tiffin	17,896	1,455	$2,067,102	39.24%	8.13	8.30%	42.20
67	Columbiana	6,231	581	$686,379	29.09%	9.32	1.80%	42.17
68	Medina	26,617	2,738	$946,516	31.19%	10.29	4.20%	42.16
69	Brooklyn	11,080	809	$4,693,933	26.08%	7.30	6.50%	42.11
70	Bryan	8,536	734	$1,864,007	35.15%	8.60	6.60%	41.97
71	Niles	18,988	1,110	$1,661,323	38.47%	5.85	6.20%	41.83
72	Norwood	19,151	1,401	$1,747,717	35.40%	7.32	5.40%	41.69
73	Athens	24,201	1,254	$718,363	43.38%	5.18	6.40%	41.47
74	Bedford	12,994	1,055	$1,726,703	35.17%	8.12	6.30%	41.45
75	Reading	10,370	824	$1,374,579	35.80%	7.95	6.80%	41.43
76	Oberlin	8,380	579	$1,183,228	32.99%	6.91	4.20%	41.22
77	Troy	25,134	1,943	$3,111,596	27.90%	7.73	5.20%	41.16
78	Shelby	9,022	629	$961,380	32.43%	6.97	3.90%	41.10
79	Avon	21,440	1,409	$1,129,067	33.22%	6.57	4.40%	41.07
80	Madeira	8,749	1,134	$259,430	22.75%	12.96	3.10%	41.06
81	Kenton	8,019	535	$1,153,163	45.05%	6.67	9.00%	40.98
82	Logan	7,261	736	$794,662	31.79%	10.14	5.50%	40.96
83	Wapakoneta	9,861	811	$807,787	33.42%	8.22	4.20%	40.95
84	Canfield	7,478	1,043	$517,705	20.04%	13.95	4.20%	40.95
85	Warrensville Heights	13,469	1,155	$1,856,794	37.06%	8.58	7.30%	40.80
86	Macedonia	11,268	1,361	$950,126	28.29%	12.08	5.40%	40.27
87	Powell	11,746	1,597	$259,364	21.54%	13.60	2.50%	40.20
88	Norwalk	16,959	1,552	$826,928	32.86%	9.15	5.80%	40.19
89	Greenville	13,152	1,195	$1,408,417	32.47%	9.09	6.70%	40.09
90	Ashland	20,492	1,505	$1,037,918	39.00%	7.34	7.60%	40.05
91	Loveland	12,370	1,359	$598,428	23.91%	10.99	2.80%	40.03
92	Monroe	13,009	628	$3,204,390	33.12%	4.83	5.10%	39.97
93	Aurora	15,524	1,719	$1,289,682	24.08%	11.07	4.90%	39.73
94	Fairfield	42,623	4,097	$2,529,828	28.56%	9.61	7.00%	39.73
95	Centerville	23,965	2,181	$1,120,149	26.64%	9.10	4.20%	39.72
96	New Philadelphia	17,321	1,659	$890,212	31.16%	9.58	5.60%	39.60
97	Fremont	16,633	1,494	$1,546,292	35.14%	8.98	8.40%	39.58
98	Northwood	5,289	546	$2,421,749	31.14%	10.32	8.80%	39.54
99	Celina	10,388	869	$743,679	36.59%	8.37	7.40%	39.32
100	Strongsville	44,656	4,182	$1,087,691	26.02%	9.36	4.70%	38.97
101	Miamisburg	20,148	1,814	$1,059,055	27.34%	9.00	4.50%	38.90
102	Findlay	41,373	4,052	$2,019,100	27.12%	9.79	6.70%	38.88
103	Springboro	17,693	1,765	$1,149,070	25.84%	9.98	4.20%	38.87
104	Defiance	16,658	1,226	$1,503,079	35.24%	7.36	8.00%	38.68
105	Gahanna	33,570	3,478	$822,962	27.08%	10.36	4.20%	38.63
106	Salem	12,264	1,319	$999,237	30.48%	10.76	7.20%	38.52
107	North Royalton	30,355	3,038	$464,671	26.07%	10.01	4.50%	38.49
108	Norton	12,048	827	$1,043,642	31.08%	6.86	4.60%	38.39
109	Perrysburg	20,982	2,430	$636,442	22.59%	11.58	4.40%	38.36
110	Avon Lake	22,708	1,949	$2,306,740	19.55%	8.58	3.40%	38.33
111	Barberton	26,461	1,442	$2,632,941	34.19%	5.45	7.90%	38.15
112	Wilmington	12,500	908	$1,851,638	36.34%	7.26	9.20%	38.04
113	Cortland	7,064	796	$500,446	22.36%	11.27	4.20%	38.00
114	Van Wert	10,787	833	$2,182,101	31.81%	7.72	8.30%	37.91
115	Marysville	22,581	1,643	$1,049,322	29.03%	7.28	4.40%	37.84
116	Lancaster	38,948	2,939	$742,237	34.13%	7.55	6.90%	37.80
117	Wickliffe	12,719	1,163	$840,645	29.23%	9.14	6.40%	37.73
118	Richmond Heights	10,524	1,013	$662,990	31.00%	9.63	7.10%	37.72
119	Mason	30,905	2,647	$1,356,270	27.13%	8.56	4.90%	37.67
120	Green	25,742	2,171	$1,246,550	26.26%	8.43	5.00%	37.66
121	Brook Park	19,126	1,551	$1,693,716	29.34%	8.11	6.40%	37.64
122	Bellefontaine	13,162	989	$1,188,128	34.98%	7.51	7.80%	37.63
123	Lyndhurst	13,916	1,715	$253,016	20.58%	12.32	3.00%	37.57
124	Wadsworth	21,678	2,205	$605,681	23.76%	10.17	4.00%	37.46
125	Newark	47,708	3,035	$1,585,418	32.49%	6.36	6.80%	37.32
126	Sandusky	25,606	1,728	$1,080,594	33.97%	6.75	7.30%	37.15
127	Sylvania	18,929	2,168	$453,533	22.56%	11.45	4.90%	37.14
128	North Olmsted	32,504	2,802	$1,122,241	28.27%	8.62	5.90%	37.13
129	Springfield	60,423	3,267	$1,767,509	37.62%	5.41	8.70%	37.10
130	Eastlake	18,549	1,613	$1,292,109	26.16%	8.70	5.20%	37.10
131	Beavercreek	45,459	3,679	$855,806	22.45%	8.09	3.50%	37.09
132	Warren	41,199	2,863	$1,554,264	30.49%	6.95	6.80%	37.03
133	Fairview Park	16,704	1,516	$366,662	28.17%	9.08	5.70%	37.00
134	Upper Arlington	34,008	4,638	$255,743	14.88%	13.64	3.10%	36.88
135	Fostoria	13,209	752	$2,012,725	36.04%	5.69	9.50%	36.77
136	Beckett Ridge	8,728	747	$932,731	23.03%	8.56	4.30%	36.74
137	Amherst	12,057	993	$1,115,261	26.28%	8.24	5.80%	36.72
138	Northgate	7,109	594	$610,522	26.77%	8.36	4.80%	36.65
139	North Canton	17,433	1,541	$571,621	26.61%	8.84	5.20%	36.59
140	Canton	73,027	4,983	$2,681,704	32.55%	6.82	9.60%	36.54
141	Sidney	21,095	1,649	$2,362,255	27.23%	7.82	7.30%	36.51
142	Tallmadge	17,492	1,226	$827,945	25.12%	7.01	3.80%	36.44
143	Hubbard	7,817	796	$339,377	23.12%	10.18	4.60%	36.36
144	Grove City	36,261	3,000	$1,687,417	21.33%	8.27	3.70%	36.33
145	Ironton	10,989	877	$521,181	27.25%	7.98	5.00%	36.29
146	Broadview Heights	19,292	1,831	$776,458	21.90%	9.49	4.60%	36.27
147	Ashtabula	18,976	1,594	$884,152	32.62%	8.40	8.00%	36.25
148	Stow	34,750	3,189	$707,084	24.55%	9.18	4.70%	36.22
149	Lebanon	20,287	1,709	$1,212,610	30.37%	8.42	7.70%	36.11
150	Berea	19,072	1,561	$666,183	31.26%	8.18	7.10%	36.03
151	Cincinnati	297,150	26,491	$2,272,362	25.07%	8.92	8.30%	35.93
152	Wheelersburg	6,600	773	$389,922	25.74%	11.71	8.70%	35.29
153	Wauseon	6,803	671	$806,565	30.70%	9.86	9.20%	35.21
154	Brookville	6,162	562	$619,157	21.71%	9.12	4.70%	35.15
155	Conneaut	12,839	795	$611,187	32.33%	6.19	6.50%	35.13
156	Delphos	7,212	654	$1,083,612	22.94%	9.07	6.20%	35.01
157	Cuyahoga Falls	49,430	4,188	$699,020	23.30%	8.47	4.80%	34.98
158	Circleville	13,410	880	$815,968	30.11%	6.56	6.80%	34.72
159	Tipp City	9,731	880	$807,890	22.50%	9.04	5.30%	34.71
160	Delaware	35,599	2,704	$1,032,484	19.79%	7.60	3.10%	34.57
161	Forest Park	18,687	1,319	$2,174,637	27.29%	7.06	6.90%	34.55
162	Seven Hills	11,756	832	$584,953	23.80%	7.08	5.10%	34.52
163	Munroe Falls	5,027	699	$170,525	16.17%	13.90	5.50%	34.50
164	Kettering	56,202	4,771	$1,118,311	20.90%	8.49	5.00%	34.44
165	Marion	36,857	1,796	$1,228,928	29.90%	4.87	5.90%	34.40
166	Englewood	13,440	976	$461,934	28.18%	7.26	5.90%	34.40
167	New Franklin	14,239	1,135	$273,979	28.63%	7.97	6.90%	34.38
168	Eaton	8,362	717	$1,238,810	23.85%	8.57	6.30%	34.38
169	Brunswick	34,386	2,631	$546,094	25.31%	7.65	4.90%	34.37
170	Bowling Green	31,049	1,835	$1,241,165	34.44%	5.91	9.90%	34.25
171	Piqua	20,600	1,535	$948,074	30.16%	7.45	7.80%	34.12
172	Lima	38,570	2,263	$2,589,925	32.88%	5.87	11.30%	33.90
173	Elyria	54,290	3,597	$1,128,917	30.47%	6.63	7.90%	33.86
174	Portage Lakes	6,912	705	$343,843	25.53%	10.20	8.00%	33.53
175	White Oak	18,708	1,128	$292,631	25.35%	6.03	4.90%	33.32
176	University Heights	13,476	1,313	$314,352	19.35%	9.74	4.50%	33.20
177	Ravenna	11,653	1,266	$838,034	25.91%	10.86	9.30%	33.15
178	Chillicothe	21,885	1,784	$937,642	28.25%	8.15	9.60%	33.08
179	Massillon	32,130	2,089	$1,299,545	27.24%	6.50	7.90%	33.07
180	Alliance	22,256	1,595	$840,841	31.41%	7.17	9.20%	32.99
181	Columbus	800,594	56,954	$2,118,546	21.78%	7.11	6.70%	32.91
182	Austintown	29,605	2,104	$839,037	26.00%	7.11	7.10%	32.90
183	Fairborn	32,798	1,309	$1,283,630	29.56%	3.99	6.60%	32.86
184	Vermilion	10,775	994	$375,635	24.55%	9.23	6.60%	32.65
185	Oakwood	9,165	829	$184,881	10.62%	9.05	1.50%	32.62
186	Louisville	9,161	686	$471,592	16.18%	7.49	2.90%	32.54
187	Shaker Heights	28,200	3,291	$201,849	12.82%	11.67	4.20%	32.51
188	Hilliard	29,715	3,057	$671,412	18.22%	10.29	5.00%	32.51
189	Mount Healthy	6,060	509	$264,334	22.79%	8.40	6.00%	32.40
190	Whitehall	18,291	1,376	$924,159	31.03%	7.52	9.10%	32.32
191	Dry Run	7,109	762	$76,573	16.27%	10.72	4.00%	32.31
192	Painesville	19,616	1,280	$991,041	27.58%	6.53	7.30%	32.04
193	Lincoln Village	9,453	786	$670,453	23.79%	8.31	5.80%	32.00
194	North Ridgeville	30,103	2,350	$422,404	24.51%	7.81	6.30%	31.81
195	Dayton	143,446	9,071	$1,744,635	29.91%	6.32	10.30%	31.78
196	Cleveland	394,335	26,174	$1,859,640	30.50%	6.64	11.70%	31.09
197	Parma	81,055	5,695	$595,757	21.63%	7.03	6.00%	31.03
198	Xenia	25,835	1,931	$615,943	22.11%	7.47	6.30%	30.99
199	Middletown	48,664	3,570	$2,064,557	24.03%	7.34	9.50%	30.91
200	Finneytown	13,115	1,074	$261,265	22.91%	8.19	5.80%	30.87
201	Olmsted Falls	8,946	796	$208,068	14.82%	8.90	3.70%	30.80
202	Akron	199,038	14,301	$1,315,304	27.24%	7.19	9.80%	30.75
203	Struthers	10,630	778	$448,357	25.84%	7.32	7.90%	30.74
204	Clayton	13,207	1,148	$262,417	22.39%	8.69	6.30%	30.53
205	Reynoldsburg	35,652	3,086	$301,287	18.05%	8.66	5.00%	30.47
206	Youngstown	66,511	3,856	$1,237,514	28.48%	5.80	9.90%	30.42
207	Garfield Heights	28,650	1,879	$852,757	26.13%	6.56	8.50%	30.14
208	Riverside	25,181	1,190	$814,499	31.93%	4.73	9.60%	29.89
209	Hamilton	62,350	4,014	$911,812	24.96%	6.44	8.40%	29.82
210	Girard	9,874	861	$410,109	16.61%	8.72	6.10%	29.80
211	Lakewood	51,693	4,371	$428,229	19.35%	8.46	6.90%	29.72
212	Lorain	64,017	2,943	$1,117,459	29.05%	4.60	9.50%	29.67
213	Cleveland Heights	45,851	4,544	$218,388	17.63%	9.91	6.90%	29.49
214	Toledo	285,459	16,554	$1,137,032	28.84%	5.80	10.70%	29.45
215	Kent	31,301	1,414	$690,474	30.69%	4.52	9.10%	29.13
216	Pataskala	14,969	1,486	$676,030	12.52%	9.93	4.60%	28.91
217	Parma Heights	20,583	1,325	$195,792	17.28%	6.44	4.80%	28.90
218	Huber Heights	38,573	2,397	$665,030	20.28%	6.21	6.40%	28.60
219	Pickerington	18,678	2,061	$327,275	13.88%	11.03	5.90%	28.39
220	South Euclid	22,139	1,768	$242,175	21.61%	7.99	7.90%	28.04
221	Dent	10,398	561	$458,936	14.62%	5.40	4.00%	27.92
222	Sheffield Lake	9,103	613	$123,951	15.50%	6.73	4.10%	26.90
223	Willowick	14,123	711	$334,646	18.85%	5.03	6.40%	26.83
224	Euclid	48,564	2,779	$1,066,628	21.52%	5.72	9.30%	26.57
225	Maple Heights	22,996	1,498	$837,773	24.23%	6.51	10.50%	25.87
226	Trotwood	24,375	1,418	$376,471	15.59%	5.82	8.40%	22.16
227	Northbrook	10,226	525	$355,461	14.29%	5.13	9.00%	19.01
228	East Cleveland	17,812	887	$346,888	23.22%	4.98	14.20%	18.54

Methodology

We analyzed communities with a population over 5,000 and with 500 or more businesses, but we excluded places that lacked data. We calculated the score for each location with the following criteria:

Business climate (65% of the overall score).  This was based on three metrics from the U.S. Census Bureau’s American Community Survey:

Average revenue of businesses (20% of the score) — a higher average contributed to a higher overall score.
Percentage of businesses with paid employees (25% of the score) — a higher percentage contributed to a higher overall score.
Businesses per 100 people (20% of the score) — a higher number contributed to a higher overall score.

Local economic health (35% of the overall score). This was based on three metrics from the U.S. Census Bureau’s American Community Survey:

Median annual income (10% of the score) — a higher median contributed to a higher overall score.
Median monthly housing costs (10% of the score) — a higher median contributed to a higher overall score.
Unemployment rate (15% of the score) — a lower rate contributed to a higher overall score.

For more information on starting a small business, check out NerdWallet’s small business guide.

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Best Places for Millennial Job Seekers in South Carolina

Although the Great Recession hit South Carolina harder than most places, recent economic indicators show the state is making some headway, if slowly. While the unemployment rate hasn’t budged much in the past year, millennials here are primed to find jobs.

Young adults, or millennials, in South Carolina are attracted to the laid-back Southern lifestyle, coastal towns, thriving cities and lower rents throughout the state.

Some of the most successful businesses in the Palmetto State are in sectors such as aerospace, alternative energy, automotive manufacturing, biotechnology and pharmaceuticals, distribution, food processing, forestry and wood products, plastics and chemicals as well as recreation, according to the state Department of Commerce. The Charleston metropolitan area, in particular, is seeing a rise in its millennial population as the tech industry moves in.

NerdWallet crunched the numbers for 66 cities and towns in South Carolina to determine the best places for millennial job seekers.

NerdWallet’s analysis

1. Are there jobs in the area? We looked at the unemployment rate in 2013 and the average worker payroll salary in 2012 using the most recent U.S. Census Bureau figures. We determined the average worker’s salary with the census bureau’s payroll by ZIP code. Lower unemployment rates and higher payroll salaries scored positively.
2. Can you afford to rent near work? Using census data, we measured a city’s median rent, including utilities, to determine if an area has reasonable rent costs. Lower costs resulted in a positive score for a city.
3. Do other millennials live there? We determined that millennials are workers ages 18-33, which is the definition used in a March 2014 Pew Research Center report. We used two of the census bureau’s brackets, ages 20-24 and 25-34, to create a millennial group for our analysis. From this, we found the percentage of millennials in a city’s 2013 population and the growth of millennial residents from 2010 to 2013. High percentages received positive scores.

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Key takeaways 

Millennials are moving to the Charleston area. Half of the places on our list are in the city or within 45 minutes of Charleston — from the city itself to North Charleston and small suburban cities. The city’s economy has been on the upswing and attracting the kind of tech startups that hire large numbers of millennials. Charleston’s waterfront, historic sites, museums, cultural centers, universities, restaurants, retail and, of course, beaches are also appealing.

They are jetsetters — or live near airports. South Carolina millennials can get away at a moment’s notice thanks to their proximity to the state’s airports. Five of the places on our list have airports within city limits including Aiken Municipal Airport, Berkeley County Airport, Charleston International Airport, Columbia Metropolitan Airport and Greenville-Spartanburg International Airport.

Best places for millennial job seekers in South Carolina

1. Cayce

This suburb of South Carolina’s capital, Columbia, sits at the top of our list with about 29% of the city’s population of 13,000 in the millennial age group. Cayce also boasts the highest salaries of any place on our list at a median nearing $50,000 a year. The city is on the Congaree River and close to the Columbia Metropolitan Airport and major roads, making it a great choice for commuters. Some of the biggest employers in the Columbia area include the state government, Palmetto Health hospital system, University of South Carolina and the energy company SCANA.

2. Fort Mill

Fort Mill, a suburb of Charlotte in York County, saw one of the highest increases in its millennial population from 2010 to 2013, with an increase of over 26%. Some of the largest employers in Fort Mill include Wells Fargo Home Mortgage, Ross Distribution, Schaeffler Group USA, Citi Financial, US Foods, Shutterfly, Domtar and Daimler Trucks North America. Nearby attractions include the Anne Springs Close Greenway, Carowinds amusement park and the annual South Carolina Strawberry Festival.

3. Greer

About 1 in 5 residents are millennials in Greer. This suburb of Greenville boasts one of the lowest median rents on the list at $747 a month. For commuters, it’s conveniently located along Interstates 85, 185 and 385. It also is home to the South Carolina Inland Port and lies next to the Greenville-Spartanburg International Airport. While Greer’s economy was once rooted in textiles, it is now home to North America’s only BMW manufacturing plant.

4. Ladson

Ladson, a census-designated place in both Berkeley and Charleston counties, had one of the higher surges in its millennial population with an increase of 25% from 2010 to 2013. While it has the highest median rent on our list at $1,034, residents also have higher median salaries at nearly $50,000 a year. Ladson is primarily a bedroom community, but an auto manufacturer — General Dynamics — is based there. Ladson is bordered by both North Charleston and Summerville, and runs parallel to U.S. Route 78 and I-26. The best-known attractions in Ladson are the Coastal Carolina Fair held annually and the Exchange Park events center.

5. Greenville

In Greenville, a city in upstate South Carolina, millennials make up 28% of the population. Residents here are fortunate to see some of the lowest rents on our list at $749 a month. The biggest employers in Greenville include Greenville Health System, School District of Greenville County, Bon Secours St. Francis Health System, Michelin North America, GE Power & Water, as well as the county, state and federal governments. The city, located in the foothills of the Blue Ridge Mountains, is famous for its unique Liberty Bridge and quaint, revitalized downtown. Several festivals are held every year including events dedicated to arts and crafts, comedy, comic books and science fiction, STEM activity, culinary arts and Shakespeare.

6. Hanahan

Hanahan, a city in Berkeley County, is just 13 miles from Charleston, and 22% of its population are millennials. Hanahan’s proximity to Charleston, including major roads, makes it an ideal location for commuters. In addition, the city is home to Naval Weapons Station Charleston and a medium-security military prison. Residents have access to the Cooper River and Charleston Harbor as well as the Goose Creek Reservoir, a popular place for fishing.

7. Charleston

Charleston is an urban magnet for millennials — 30% of the population’s 123,000 people are young adults. It’s the biggest city on our list with a range of opportunities for job seekers. The city expects 11,000 new jobs in the region over the next two years, and over 25,000 new jobs in the next five years, according to the Charleston Metro Chamber of Commerce. The main job boom is expected to be in fields including computers, software, science and engineering, sales and marketing and also in the medical industry. Charleston is above all a port city, and boasts the fastest-growing facility in the country, according to the chamber.

8. Aiken

In Aiken, over 17% of the population are millennials. It’s the county seat of Aiken County and it’s one of the two largest cities in the Central Savannah River Area. Aiken’s economy is steeped in energy and major employers include Savannah River Nuclear Solutions and the U.S. Department of Energy. Aiken is also home to the University of South Carolina at Aiken. The city features historic homes, equestrian activities, Aiken State Park, several arts organizations, the county farmers market and more.

9. Moncks Corner

Moncks Corner may be the smallest town on the list at just under 8,400 people, but millennials account for over 22% of the population. Millennial population growth was the highest on our list by far with a boom of nearly 53% from 2010 to 2013. The town is just 45 minutes from Charleston and is home to Berkeley County Airport. Residents find both the lowest rents and the lowest payrolls to match in Moncks Corner. Downtown includes progressive shops, restaurants, national retailers and small businesses as well as other attractions, including the Cypress Gardens.

10. North Charleston

North Charleston, just seven miles from Charleston, is the third-largest city in the state and the second biggest on our list with over 100,000 people. Nearly 29% of the population are millennials, who saw their population grow 11% from 2010 to 2013. The biggest employer by far is Joint Base Charleston, a military facility. The base shares its runway with Charleston International Airport, another area employer. And job seekers will also find opportunities at Boeing South Carolina, an assembly site for Boeing Commercial Airplanes, which is also a big employer in North Charleston.

Check out this interactive map of our top 10 cities for millennial job seekers in South Carolina. Click on a marker to see the city’s overall score.

 

 

Best places for millennial job seekers in South Carolina

Methodology

The overall score for each place was derived from the following sources:

1. Millennials as a percentage of the population and the growth in the millennial population from 2010 to 2013 are each 15% of the score.
2. The unemployment rate for each city is 20% of the score. The lower the unemployment rate, the higher the score.
3. Average annual worker salary is 30% of the overall score. Salary figures were calculated by averaging salaries by ZIP code, then dividing by the population.
4. Median gross rent is 20% of the score. The lower the rent, the higher the score.

All data are from the 2013 American Community Survey and the 2012 Business Patterns Survey conducted by the U.S. Census Bureau. NerdWallet analyzed 66 places in South Carolina. Places missing payroll data weren’t included.

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How to Become a Freelancer

People have been earning money freelancing for several hundred years. During the Middle Ages, medieval soldiers would offer their combat services and weapons — including their lances — to the highest bidder. They were free to serve whatever kingdom needed them, so each knight with a weapon was literally called a “free lance” for hire.

If you freelance, your clients may not need you to be ready for battle, but you will need to be ready to run a business.

Being a freelancer is, in fact, one of the easiest ways to start a company. If you find clients to contract with you for a skill that you offer, then you’ve basically formed a business. A survey from the nonprofit Freelancers Union found that in the United States, about 53 million people do some sort of freelancing. Less than half of them work full-time for multiple clients, but they’re all entrepreneurs in the eyes of the law.

“The term ‘freelancer’ has no legal meaning, but it is generally understood to be an individual who runs a business providing services,” says Stephen Fishman, an attorney and the author of “Working for Yourself: Law & Taxes for Independent Contractors, Freelancers and Consultants.” “It’s a pretty straightforward type of business to start,” he says.

Here’s how to tell if you’d be a good candidate.

A freelancer business might work for you if:

• You crave more freedom and flexibility than you can get working for a single company. As a freelancer, you set your own hours and can choose which assignments to accept and reject. You also decide where you’ll work and what equipment you’ll use for your jobs.
• You don’t want to rely on a boss for a raise. As a freelancer, you can choose to work more hours to get more business, or market yourself to higher-paying clients to make increased income. You may be able to make more money per hour than an employee in the same position because companies won’t have to pay benefits when they hire you — you’re responsible for your own taxes and insurance.
• You enjoy working with different people. Chances are you’ll be working with new clients on a regular basis. In fact, one major of benefit of being a freelancer and having several clients is that even if you lose one gig, your income won’t drop to zero. A client’s layoffs or firings won’t affect you the same way they’d affect an employee.
• You like working from home. When you’re a freelancer, you choose where your office is located, and many times the cheapest and most practical place is a room in your home.
• You have home office expenses. Freelancers have more freedom than employees to deduct expenses from income, as long as those expenses are ordinary and necessary for business. Examples include cleaning costs for the home office, magazine subscriptions and the cost of creating a website. They could also include trips to restaurants and sports events with clients and potential clients.

A freelancer business might not work if:

• You require a steady paycheck from Day One. Like any business owner, as a freelancer you probably won’t have regular income when you start. You’ll do a lot of marketing and it might take time to build up a client base. Even when you do get work, you might have to chase down payments from some clients.
• You don’t have a savings cushion or other source of income to rely on while you get your business off the ground. You should probably keep your day job and save money (enough to cover expenses for a few months) before starting a company.
• You don’t want to spend money on equipment and permits. As a freelancer, you’ll need to pay for business licenses and certifications. You’ll also need to provide your own gear and buy your own insurance.
• You want to avoid self-employment tax. If you have a sole proprietorship, you’ll need to pay Medicare and Social Security tax on your income. This is in addition to the regular income tax you would owe. Of course, as an entrepreneur, you get to decide your business structure: sole proprietorship, partnership or corporation. If you decide to go with another choice, you might not owe as much self-employment tax, but you’d have more paperwork to manage.
• You prefer job security. While there’s less risk of being fired or laid off, as a freelancer your assignment may be among the first to end if a client is trying to cut costs. And as an independent contractor, you’re generally not entitled to worker’s compensation or unemployment benefits.
• You’re really an employee. Your job shouldn’t be confused with that of a company hire. A freelancer is a type of contractor. If your client’s providing you with the tools to do your work, telling you when to work and controlling how you work, then you may be an employee, not a freelance contractor. The client could face stiff penalties from the IRS if it’s determined that you’ve been misclassified.
• You’re an entrepreneur, but you don’t really freelance. If you plan to sell products and keep inventory, you probably wouldn’t refer to your company as a freelance business.

NerdWallet verdict

You should consider starting a business as a freelancer if you sell services to multiple clients. If you’re a writer, a graphic designer or an attorney, you’re a good candidate to start a freelance business. You can also freelance successfully as an independent sales representative, especially if you represent multiple clients and don’t have to manage extensive inventory.

Being a freelancer is not a great idea if you require a steady paycheck from your work and you don’t like marketing for new clients. In fact, if you work for just one customer who gives you the technology and tools you’ll use, and monitors the hours that you work, you should check with your contact person to make sure you’re not an employee who’s being misclassified.

If you plan to sell products, manage inventory or hire employees, you probably won’t refer to yourself as a freelancer. Owners of flower shops, franchise restaurants and day care center operators all have many customers, but “entrepreneur” is a better description for their type of work.

How to get started

• Decide the type of business structure you want for your freelancer small business: sole proprietorship, partnership or corporation. You should also decide if you want your business to be an LLC, which could reduce your liability if your company were ever to be sued. “Most freelancers are sole proprietors because that’s the cheapest and easiest way to go,” Fishman says. But you should learn about all the business types before making a decision.
• Contact your secretary of state and city or county clerk to get necessary licenses and permits. Many cities require them, even for home-based businesses.
• Apply for a free Employer Identification Number from the IRS, so you won’t have to give out your Social Security number to the clients you invoice.
• File for a fictitious business name (also called “Doing Business As” or DBA) if you choose not to form an LLC. This can be done with your local municipality.
• Open a business checking account and consider getting a credit card for your freelance business. This will help you keep business and personal finances separate. Make sure you keep good financial records.
• Create a business plan that includes a great marketing strategy, and follow it.

For more information about starting a business freelancing and getting small business loans, visit NerdWallet’s Small Business Guide.

Margarette Burnette is a staff writer covering personal finance for NerdWallet. Follow her on Twitter @margarette and on Google+.

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