If you’re looking to start a small business, you have likely considered target markets, financing and growth strategies, but don't forget one of the most important factors: location.

Related: How to Find the Best Location

Thumbtack, a service that connects people with businesses and licensed professionals, rated 35 states and 78 cities on overall small-business friendliness.

The survey asked 12,000 small-business owners about government policies in their areas, rating locations on ease of starting a business, ease of hiring and other business related regulations and codes.

Related: Rating the Best -- and Worst -- States to Do Business

Cities and states that make regulatory practices easier -- especially for licensing, taxes and employment -- generally rated better. Those surveyed said that regulations are often one of the biggest obstacles to overcome when starting a business.

For more on the methodology of the survey, click here. For a look at the 10 best states to start a business, continue on to the slideshow below.

10. South Carolina

Best: A for training and networking programs

9. Oregon

Best: A+ for ease of starting a business

Worst: D for zoning

8. Arkansas

Best: A+ for environmental factors

Worst: C+ for ease of hiring

7. Virginia

Best: A for ease of hiring

Worst: C- for training and networking programs

6. Kansas

Best: A+ for ease of hiring

5. Colorado

Best: A+ for training and networking programs

4. Georgia

Best: A+ for overall friendliness

3. Tennessee

Best: A+ for overall friendliness

2. Utah

Best: A+ for overall friendliness

1. Texas

Best: A+ for overall friendliness