St. George ranked as the best city in Utah for small businesses

ST. GEORGE, Utah (ABC4) — A recent study by B2B Reviews ranked Utah cities to determine which are the best for small businesses, and St. George ranked first, followed by Layton and then Logan.

According to the study, St. George was ranked number one because of a fast-growing population, a thriving business ecosystem, and the lowest county sales tax in Utah.

St. George is one of the most populous cities in Utah, with a population of just over 100,000 people. The study found that it offers business owners access to a large and growing customer base, as St. George’s population increased 9.04% between 2020 and 2023.

But what really sets St. George apart, according to the report, is that it has the lowest county sales tax in Utah at 11.15%, which helps business owners reduce overhead and improve margins.

According to the ranking, the top ten cities for small businesses in Utah are:

1. St. George
2. Layton
3. Logan
4. Cedar City
5. South Jordan
6. Salt Lake City
7. Hurricane
8. Millcreek
9. Ogden
10. West Valley City

Layton is one of the state’s most populous cities, but it offers the benefits of a large population without the costs or the traffic of a big city, according to the study. Commercial real estate is reasonably priced at $22.13 per square foot, and it has a comparatively low local sales tax (11.85%).

“Layton is ideal for people wishing to start or grow their businesses because of its consistent population growth and business-friendly environment,” the study says, and that is why it ranked second.

Logan came in third on the list because of a “balanced mix of affordability, growth, and business presence,” according to the report. It is not one of Utah’s most populous cities, but it is still a decent size and is growing steadily, at 5.14 growth between 2020 and 2023. It also has a very competitive tax environment, with 11.7% sales tax.

The report highlights other unique aspects of the cities on the list. Hurricane offers the cheapest commercial rent in Utah, at $13.90 per square foot, and it also has the highest population growth at 18.75%. Cedar City combines 13.05% population growth between 2020 and 2023 with low taxes to make it an affordable and fast-growing city for business.

Salt Lake City has the highest concentration of employer firms in Utah–10.27% of all firms in the state–which makes it the state’s largest business hub. West Valley City is Utah’s second largest city, with good business density and moderate commercial rent.

You can read the full report, which ranks 47 Utah cities, and learn more about the methodology here.