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Cost of moving: Business friendly cities

Relocating a business can be pricey, but some cities have lower business costs than others.

Relocating a business can be pricey, but some cities have lower business costs than others.

Thinking of packing up your business and moving to an entirely new area? Then Cincinnati may be the place for you. The Ohio city is ranked the No. 1 lowest-cost business location among large U.S. cities, according to a recent KPMG listing.

Cincinnati features low property taxes, low facility leasing costs and low transportation costs, making it an attractive place to start or relocate a business. KPMG rates Cincinnati's overall business cost index at 95.9 - the national baseline is 100.

In 2006, Ohioans passed a constitutional amendment requiring the state's minimum wage to rise each year alongside national inflation rates. This year, wages rose to $7.70 per hour for non-tipped employees and $3.85 per hour for tipped employees, according to government information.

Two other major U.S. cities giving Cincinnati a run for its money are Atlanta and Orlando, Florida, KPMG says. While Atlanta features a low effective income tax rate and good public transportation, Orlando boasts competitive costs for employee wages and benefits plans. Nearby Tampa, however, has the lowest labor costs in the country, giving it a spot at No. 4 on the list of business friendly places to move.

The priciest places for entrepreneurs are New York and San Francisco, according to KPMG. While each city carries high costs for labor and property, each has other factors that may make them prohibitively expensive for businesses. Utility rates in New York are higher than average, while San Franciscans spend more on sales tax than people in other parts of the country.

Those looking to start a new business can set up shop in their city of choice, but those looking to move an existing business from one area to another face a number of logistical issues. Different types of businesses will face different challenges, but there are some things to consider no matter your profession.

First, determine the cost of your new lease, estimated utilities and any renovation costs associated with your new location. Find out what permits you'll need from your new city and how much they cost. Many moving companies offer business relocation programs, so shop around to find the best price and the best option for your business.

If you'll be bringing your employees with you, consider their relocation costs when calculating a budget for the move. If anyone gets left behind, you may need to spend extra money recruiting new employees in your new city.