There are always factors that make one community or state more attractive to the business world than other places. For some businesses that require large numbers of workers, a state with high unemployment might seem attractive. For some kinds of existing businesses, a state that offers incentives for relocating there might seem like the best place to go.

The regulatory climate of each state is something that every business must consider when they decide where to locate. Regulations are extremely varied between the states, so some research is certainly in order when deciding on the best location and business climate.

In analyzing the differences between the regulatory climates of each state, such factors as transportation, state bond ratings, business incentives and state business law and regulations are all taken into consideration.

A recent analysis by Forbes Magazine listed Rhode Island, Michigan and Montana as those with the least attractive states for business with regard to the regulatory climate. Of course, this is only one factor among many to consider when thinking of where you should do business. Some businesses must rely on certain raw materials that are only available in some regions. A regulatory climate that is unattractive may have little effect on such a business if that is where their raw materials are found. Transportation of these raw materials may well be prohibitive to a more “friendly” regulatory climate.

This list by Forbes Magazine also states that the most “friendly” regulatory climates to be found for business in the United States are in Virginia, Texas and North Carolina. Again, this must be put into perspective. While this factor might entice some businesses to look at those states, there are always other aspects to consider. A good example is North Carolina. This list shows it on top in the area of regulatory issues but this state comes in 30th for economic climate. While you may find regulations a breeze, there may not be the economy there to sustain your type of business into the future.

Every business is different. There are certain challenges one business may face that another never will. Obtaining raw materials, hiring a work force, legal matters that may vary from one state to another, costs of doing business are just some of them. The regulatory climate of any region is one of the considerations to be looked at. Some businesses are much more highly regulated than others are just by their nature. A business dealing with explosives is obviously going to have more state and national regulations on it than a simple retail outlet will have.

The key to finding the best environment for a business is a mix of all the factors. Some highly regulated businesses may well find the less involved regulatory climate of some states more attractive than other states. It should also be kept in mind that any business may not be less liable in the eyes of the law simply because the local state regulations are more lax than other states are.