Hawaii and New York remain the most expensive states to run a business, while South Dakota is the cheapest, according to a recent study by the Milken Institute.

Soaring electricity costs kept Hawaii in the number one spot for the third year in a row on the Santa Monica, Calif.-based think tank's annual business-cost index. Record-high rates for office space put New York high in the second spot.

Breaking down expenses, the study found Connecticut had the highest wages, while Vermont had highest business taxes.

Published on: Aug 22, 2007