Business Climate

Business Climate

Set up shop in St. Louis and here’s what you’ll find: a large, productive work force with the talents and skills to do just about anything; fair tax administration and a friendly legislative environment; great access to the rest of the United States — in short, an environment that, according to Expansion Management magazine, puts us among the best metropolitan areas in the country for business opportunity.

Corporate, sales, and property taxes are all among the lowest in the country in Missouri. The nonpartisan Tax Foundation ranks Missouri's business tax climate 16th and Illinois' 23rd among the 50 states. The Tax Foundation also ranks Missouri with the fifth-best Corporate Income Tax Index (1). All in all, Greater St. Louis stands as one of the most tax-friendly regions in the United States for doing business, even before additional incentives are taken into account.

The St. Louis, MO-IL MSA supports a large and diverse business community including a strong small business sector.

Diverse St. Louis Business Community
Total Business Locations (i)	194,362
Total Corporations (ii)	178,870
Total Business Headquarters (iii)	3,507
Women Owned Corporations (iv)	11,470
Women Owned Headquarters (iii)	240
Minority Owned Corporations (iv)	2,856
Minority Owned Headquarters (iii)	93
Source: "Hoovers" Dun & Bradstreet, 2011. Notes: (i) Search on Location Type = Headquarters OR Branches OR Single Locations. (ii) Search on Location Type = Headquarters OR Single Locations (HQ or subsidiaries). (iii) Headquarters have other locations reporting to them. (iv) Search on Location Type = Headquarters OR Single Locations (HQ or subsidiaries) of Women Owned, Minority Owned Corporations Located Anywhere.

The St. Louis region also features a pro-growth business culture that is getting better all the time. One example is the Missouri Quality Jobs Act, which complements the Illinois EDGE program by providing economic incentives to Missouri companies that create jobs with health benefits and good wages.

A 2012 publication by The Boyd Company analysis of business headquarters costs ranked St. Louis 8th among the 18 largest MSA's. St. Louis ranked 1st for Annual Electric Power costs and had the 2nd lowest Annual Corporate Travel costs.

Both Illinois and Missouri also have enacted comprehensive reforms in their workers’ compensation systems, and Missouri enacted one of the strongest tort reform laws in the country.

For startups, the resources are terrific. The region has numerous business incubators where fledgling firms can find advice, nurturing, and inexpensive office and lab space; additional information regarding entrepreneurial resources can be found here.

Financial resources are growing rapidly. There are now several different venture funds covering plant and life sciences, IT, telecom, and other sectors. In the life sciences, venture capital per worker has surpassed competing regions for several years running, the Council on Competitiveness found.