Colorado ranks second among the best states to start a business, according to a new study evaluating a combination of factors.

Forbes Advisor conducted the study, taking into account a total of 18 metrics across five categories — business costs, business climate, financial accessibility, economy and workforce. The metrics included taxes, wages, business survival rates, per capital gross domestic product and personal expenditures, cost of living, unemployment rates and proportion of workers with college degrees.

Colorado scored a 98 out of a possible 100, faring best for business costs and business climate. Colorado fared well in the analysis with one of the nation’s lowest business formation fees and the ability to launch businesses in widely restrictive industries such as recreational cannabis. Colorado ranked first for startup density.

Colorado posted a net increase of more than 9,000 small businesses over the past year with an 81.9 percent survival rate.

Colorado ranked high along with Massachusetts and Connecticut with more than 40 percent of the population having a college education.

Indiana ranked in the analysis as the best place to start a business with a combination of low taxes and cost of living with a high proportion of working age people in the population.

North Dakota ranked third in part because of its low corporate and personal income tax rates. Pennsylvania was fourth in part because of its availability of resources and funding for entrepreneurs. South Dakota rounded out the top five.

New York ranked as the worst state to start a business with a high cost of living and unemployment rate and comparatively low business survival rate.

New Mexico finished next to last in the analysis, while Vermont, Michigan and Oregon rounded out the bottom five.

For more information about the Forbes Advisor study, log on to

https://www.forbes.com/advisor/business/best-states-to-start-a-business.