According to an article, U.S. News and World Report ranks Iowa as the second worst state to start a business.

"2. Iowa

Politically, Iowa is a hard state to pin down. It is known for a
progressive streak, but also has a strong conservative voting bloc that
voted for George W. Bush in 2004 (although the state went for Barack
Obama in 2008). Iowa's strong "purple" nature might explain why it
ranks so poorly as a state in which to start a business. It seems to
have the worst impulses of its conservative and liberal
tendencies--relatively low investment in the things that make
entrepreneurs succeed, and high government interference. For the
latter, Iowa has very high capital gains taxes and corporate income
taxes, and is also one of the worst states for unemployment taxes on
wages. In terms of investment, Iowa is 46th out of the states for
adoption of broadband telecommunications services, and the speed of
those services."