2026 Updates: Best States to Open a College or University in the United States

Launching a new college or university in the United States is an ambitious venture that requires careful planning and a keen understanding of regulatory landscapes. Aspiring founders often ask how to open a college or university, and one of the first—and most critical—decisions is choosing where to establish it. The regulatory environment varies widely by state, affecting everything from licensing timelines to naming rights and ongoing compliance. This 2026 update examines the best (and worst) U.S. states for opening a degree-granting institution, focusing on ease of state approval, business climate, and practical considerations for investors and entrepreneurs (both domestic and international). We’ll also address common questions like how much does it cost to open a college or university and highlight key compliance factors like accreditation, SEVIS certification for international students, and state-specific requirements (for example, California’s BPPE or New York’s Board of Regents processes).

Why State Choice Matters: In the U.S., private colleges and universities must be authorized by a state agency to operate and award degrees. This state approval is separate from accreditation (which is a private peer-review process), but it’s a legal prerequisite in most cases. Some states have streamlined, business-friendly approval processes that make it easier and faster to launch a new institution. Others impose lengthy reviews, high fees, or restrictive conditions that can significantly delay or even derail a new college before it opens. Beyond paperwork, states also differ in their business climate—taxes, cost of living, availability of faculty, and attractiveness to students. For instance, Florida’s lack of state income tax and sunny, recreation-rich environment make it appealing to students and investors alike, whereas states like New York or California, despite their large markets, have gained reputations for regulatory hurdles and high operating costs. The decision on where to establish your school will impact not only the opening a college or university phase, but also long-term success factors like student enrollment, finances, and accreditation prospects.

In this comprehensive guide, we’ll break down the top three states that are most welcoming for new colleges in 2026, discuss a couple of “middle ground” states, and warn about five states that are particularly challenging this year. We’ll also provide comparison tables to summarize key factors such as approval timelines, fees, naming restrictions, and post-approval requirements in each state. Finally, we’ll close with practical advice on balancing regulatory ease with other strategic factors (like cost, faculty recruitment, and student demographics) to make the best choice for your higher education startup.

Top 3 States for Opening a College/University in 2026

The following states have emerged as the most favorable for starting a degree-granting institution, based on current regulations, efficiency of approval, and overall business climate. Florida, Utah, and Arizona top our list for 2026. Each offers a comparatively streamlined path to authorization without compromising educational oversight. Below is a summary of key metrics for these top states:

Table 1. Comparison of Top 3 States for New Colleges (2026)

(Sources: State regulatory agency guidelines state statutes, and expert analyses.)

As shown above, Florida, Utah, and Arizona each offer a reasonably efficient path to starting a college, but with different nuances. Let’s dive deeper into what makes these states stand out:

Florida: Fast Approvals and a Friendly Business Climate

Florida continues to rank #1 as the best state to open a college or university in 2026. The Sunshine State combines a streamlined approval process with an attractive environment for both investors and students. The Florida Commission for Independent Education (CIE) oversees licensing of private institutions, and it has established a clear, relatively quick procedure for new schools. The process typically takes about 4 to 6 months from application to approval. Each new institution first obtains a Provisional License to operate; after meeting certain conditions and operating for a year, it can transition to a longer-term license. Florida assigns a program specialist to guide applicants and aims to review submissions within 30 days. Once the application is complete, it goes to the CIE’s next meeting for a vote (the Commission meets regularly, avoiding long backlogs). This efficiency is a huge advantage—founders can move from planning to enrolling students in under a year in many cases.

Florida’s business climate is equally compelling. The state famously has no personal income tax, which benefits individuals drawing salaries or profits from the new institution. (Florida’s constitution bans state income tax, relying on tourism-driven sales and property taxes instead.) For an investor-entrepreneur, this means a lighter tax burden when the college becomes profitable. Florida is also known for comparatively low regulatory barriers to businesses and a proactive approach to attracting investment. For example, setting up a corporation or LLC in Florida is straightforward, and there are no unusual restrictions on naming your entity “University” or “College” once you have CIE approval. Unlike some states, Florida doesn’t force new schools to be accredited upfront or to post large surety bonds. In fact, Florida does not require a surety bond at all for private colleges, and its application fees are based on the scale of the school (typically a few thousand dollars for a small college). This keeps initial costs reasonable.

From a market perspective, Florida is incredibly welcoming. The state’s warm weather, beaches, and world-class attractions (Disney World, Miami nightlife, etc.) make it a magnet for students globally. A college located in Florida can leverage the state’s brand as a fun, vibrant destination, which helps in marketing to out-of-state and international students. Florida’s diverse population (with large Latin American and Caribbean communities, for instance) and tourism infrastructure mean an entrepreneur can build programs that appeal to a wide audience. Additionally, if you aim to enroll international students, Florida’s airports and multicultural cities (Miami, Orlando, Tampa) provide a strong base. (We’ll discuss international student compliance—SEVIS certification—later, but note that Florida has many SEVP-certified schools, indicating a supportive environment for foreign enrollment.)

On the regulatory side, Florida’s CIE has a track record of efficiency. According to the National Council for SARA, Florida’s Commission assigns each applicant a specialist and typically completes provisional licensing in 4–6 months. The state does not require accreditation as a precondition to licensure, allowing you to open doors and start teaching while pursuing accreditation on your own timeline. This is a big plus if your college startup plan is to begin offering programs and generating revenue while working toward accreditation candidacy. Florida does impose annual license renewal, meaning you’ll report basic information and pay a renewal fee each year to remain in good standing. However, renewals are routine as long as you follow state regulations (e.g. maintain acceptable student records, fair refund policies, etc., which Florida mandates for licensed schools).

From the perspective of an international entrepreneur, Florida often ranks top as well. The state is accustomed to foreign investment in education and other sectors. There are no extra state barriers if the owner is non-U.S. (though federal rules for visas or business registration still apply). Many overseas investors find Florida culturally accessible and logistically convenient (it’s easier to find bilingual staff, and professionals who can navigate both U.S. and international frameworks). All these factors combined mean Florida offers a comparatively low-friction launchpad for a new college.

Example: Imagine an investor from the U.K. wants to establish a new hospitality management college attracting students from Europe, Asia, and Latin America. Choosing Orlando, Florida could be ideal: state approval could be secured in under six months, the campus could tout proximity to theme parks and beaches, and there’s no state income tax draining the school’s finances. The founder wouldn’t need accreditation on day one, so the college could begin enrolling students and generating tuition revenue while working with an accreditation consultant to later attain national or regional accreditation. In parallel, the college could pursue SEVIS certification to issue student visas, leveraging Florida’s status as a top international student destination.

Florida isn’t without costs and challenges, of course. You still need a solid business plan and sufficient capital. State law requires new institutions to demonstrate financial stability (e.g. a business plan, budgets, and in some cases a review of finances) as part of the application. Florida also enforces student protection measures like a required refund policy and a Student Protection Fund fee (a small assessment based on tuition revenues) to guard students in case a school closes. These are standard precautions that legitimate schools can readily meet. Compared to most states, Florida’s regulatory demands are moderate and focused on protecting students without stifling new institutions.

In short, Florida offers speed, support, and a fertile recruiting ground for new colleges. It remains “on top of the list” in 2026 due to its balanced approach: rigorous enough to filter out bad actors, but efficient enough to let serious educators launch and innovate quickly.

Utah: Simple Registration and “University” Status from Day One

Utah takes the #2 spot as an excellent state to open a postsecondary institution, particularly for U.S.-based and Canadian investors. Over the past couple of years, Utah revamped its laws to simplify the oversight of private colleges. As of 2024, all postsecondary schools in Utah must register with the Division of Consumer Protection (DCP), which functions as the state authorizer. The registration process is straightforward and can be done online via a Utah DCP portal. For new degree-granting institutions that are not yet accredited, Utah issues a “registration certificate” that legalizes their operations on an annual basis. If and when the institution becomes accredited, it can apply for a longer-term state authorization certificate (good for two years). This two-tier system (registration vs. authorization) is very startup-friendly: it allows you to begin operations as an unaccredited school relatively quickly, while providing a path to a more permanent status once you attain accreditation.

Speed and Efficiency: Utah’s process does not involve lengthy in-person commission hearings or provisional charters. It’s often described as bureaucratically light. You submit a registration statement (essentially an application) with required documentation, pay a fee, and await DCP approval. The timeframe can be as short as a few weeks if your paperwork is complete, or a couple of months if there are questions to resolve. There’s no fixed “board meeting” delay, since approvals are handled administratively. In 2024, Utah officials set a deadline (August 1, 2024) for all schools to either register or renew under the new law, implying the system is up and running efficiently. New applicants in 2025 and 2026 benefit from this clarified process.

One of Utah’s unique selling points is name flexibility. In some states, if your college isn’t accredited, you are forbidden from using certain protected terms like “university” in your name. Utah does not impose this restriction. Unaccredited schools can legally call themselves “College” or “University” in Utah as long as they have the state’s registration. For example, Mount Liberty College in Utah opened in 2018 without accreditation but with state approval, and it operates openly under that name. The state’s focus is on truth-in-advertising (you can’t claim you are accredited when you’re not) rather than on policing the name. For founders who want the prestige of the word “University” on their letterhead from day one, Utah is very accommodating. (By contrast, our #3 state Arizona and many others restrict name usage until accreditation—more on that soon.)

Moderate Requirements: Utah does expect new schools to meet baseline standards. You will need to provide information on programs, curricula, financial stability, and faculty qualifications in your registration application. The Division of Consumer Protection may require evidence of a surety bond or other security if your school will handle prepaid tuition above certain thresholds, to protect students (Utah calculates this based on financial metrics like composite score and revenue). However, not all new schools must post a bond—often, if your finances are sound or you’re small initially, you can be exempt from bonding by showing a good composite score or limited prepaid tuition. Utah’s fee structure is based on revenue: a non-refundable application fee is required, but it’s not a flat exorbitant amount. For example, if your projected gross tuition is low in year one, your fee will be at the minimum level (a few hundred dollars). This is advantageous for startups that won’t have large enrollments immediately. Essentially, Utah doesn’t overcharge a school until it’s actually enrolling students and bringing in tuition.

Another benefit is the lack of a heavy ongoing oversight burden. Once registered, you simply renew annually (or biennially if accredited) and maintain compliance. Utah law even explicitly states that only accredited schools get the special “state authorization” certificate for federal purposes, whereas unaccredited schools operate under the regular registration. There is no ticking clock by which you must become accredited (unlike some states that say “get accredited in X years or shut down”). This means if your model is to remain a boutique, unaccredited institution (perhaps offering a niche curriculum), Utah will allow it as long as you meet the basic standards and properly inform students. In fact, Utah’s approach is somewhat hands-off academically: the state cares that you deliver what you promise to students, not what specific content or pedagogy you use. Many entrepreneurs appreciate this flexibility to innovate with curriculum.

Why mainly U.S. and Canada investors? We rated Utah as especially favorable for U.S. and Canadian-based entrepreneurs. That doesn’t mean others are excluded, but rather reflects practical considerations. Utah, while business-friendly, may not have the same international cachet or support network that Florida does. International investors often prefer Florida or Texas due to easier travel links, familiarity, and presence of international law firms and consultants. Utah’s local market is smaller (population ~3.3 million) and culturally distinct (e.g. a significant portion of the population is associated with the LDS Church and local higher education has its nuances). A domestic investor who understands the U.S. context or a Canadian investor (who may be more comfortable due to geographic proximity and a similar educational ethos) might navigate Utah more easily. Additionally, if a foreign investor needs U.S. residency or visas to run the school, states like Florida or Texas might offer more established pathways or regional center programs. That said, none of this detracts from Utah’s strengths as a regulatory environment. If you are an international entrepreneur with a good local partner or advisory, Utah can absolutely work for you too.

Quality of Life and Student Appeal: Utah might not have beaches, but it boasts stunning natural landscapes (the Rocky Mountains, national parks) and a reputation for safety and family-friendly communities. For certain types of institutions—say, an outdoor leadership college or a tech institute near Silicon Slopes—Utah can be very attractive to students. The state also has a relatively low cost of living compared to coastal states, meaning student housing and expenses are reasonable. This could broaden your potential student pool (they don’t all need to be wealthy to afford to live in Utah). Utah’s population is growing, and it has a young demographic with many seeking higher education. Plus, Salt Lake City is increasingly cosmopolitan, with direct flights to Europe and Asia, so international student recruitment is not out of the question.

In summary, Utah’s simplified process, low fees, and permissive naming rights make it a rising star for new college startups. It especially shines if you want to begin as “University” from day one without accreditation, or if you prefer minimal government intrusion as you build your academic programs. Just ensure you prepare thoroughly for the registration (you’ll need to show you’re a serious institution, with proper documentation and plans) and stay transparent with students about your accreditation status.

Arizona: Streamlined Process with a Naming Caveat

Arizona secures the #3 spot on our best states list, offering a blend of the advantages seen in Florida and Utah. Arizona’s regulatory framework for private higher education is managed by the Arizona State Board for Private Postsecondary Education (AZPPSE). Like Florida’s CIE, the AZPPSE has a clear application process that culminates in a license to operate. And similar to Utah, Arizona does not require initial accreditation (though it strongly encourages a plan for it). The state is known for being pro-business and efficient in many sectors, and higher ed is no exception – but entrepreneurs should be aware of one key restriction: if your institution is unaccredited, you cannot use the terms “college” or “university” in its name until you achieve accreditation. We’ll unpack that shortly.

Efficient Approval: The timeline to get a private college licensed in Arizona is generally about 3 to 4 months, which is among the fastest in the nation. Arizona’s Board meets quarterly (every few months) to approve initial licenses. As long as you submit your application in time for the upcoming meeting and it’s complete, you could receive approval at that meeting. The Board also has a process for staff-level review prior to the meeting, to ensure everything is in order. In practice, well-prepared schools have been approved in roughly 90 days. The state even targets a 10-day turnaround on the initial letter of intent review (the first step). This means Arizona actively tries to help you move through the steps quickly, rather than letting your application languish. Speed-to-market is a big plus if you have investors or partners eager to see the project launch on a tight schedule.

Licensing and Costs: Upon approval, Arizona issues you a regular private postsecondary License. If you are unaccredited at the time (as most new startups are), the Board typically labels it a “conditional” or “provisional” license with certain expectations (like pursuing accreditation). However, this does not prevent you from operating; it just means you’ll have to renew and demonstrate progress periodically. Arizona’s fees are reasonable: the initial license application fee is $2,000 (covering up to 5 degree programs). There’s a small surcharge for additional programs beyond five (e.g. $100 each), which for most new colleges isn’t an issue since you’ll likely start with a limited number of programs. The annual renewal fee is on a sliding scale based on your revenue, ranging from $750 for small schools up to a maximum of $6,000 for very large ones. In the first few years, a new college usually pays at the low end of this range because enrollment (and thus revenue) is just ramping up.

One non-negotiable cost in Arizona is the surety bond. The state requires a minimum $15,000 surety bond (or alternative security like a cash deposit) as a financial guarantee for unearned tuition. This bond is there to protect students: if your school were to close unexpectedly, the bond can be used to refund students’ prepaid tuition. $15,000 is a fairly standard amount (for context, some states require bonds of $50,000 or more, so Arizona’s requirement is moderate). You must secure this bond before finalizing your license; it’s essentially a startup cost. Bonding usually requires paying a percentage of the amount annually to a bond company (for $15k, often a few hundred dollars a year if you have decent credit). Ensure you budget for this and have it in place, as Arizona will check.

Accreditation Constraints and Naming: Arizona law has a quirk: unaccredited institutions are not allowed to use the words “University” or “College” in their official name until they obtain accreditation. This is the one drawback that our clients often note. What does this mean practically? If you incorporate your entity in Arizona and seek a license, you might have to pick a name like “XYZ Institute” or “ABC School of Business” instead of “XYZ University” if you’re starting unaccredited. If you try to register as “XYZ University” without accreditation, Arizona’s Board will likely make you change it or issue your license with a stipulation not to use that title. The rationale is to avoid misleading students about the institution’s stature. In Arizona’s view, “University” implies a certain legitimacy (often equated with accreditation), so they reserve it for schools that have passed that higher bar.

However, if having “University” in the name from the outset isn’t critical for you, this isn’t a big issue. Many startups simply choose a creative name that doesn’t include those restricted words—plenty of respected institutions have names like “Institute,” “Academy,” or other descriptors. Alternatively, you can do what some schools have done: use a placeholder name and then officially change the name once accreditation is achieved. (Arizona does not charge a fee for a name change, as long as you file the proper form.) For example, an Arizona school might start life as “Southwest Institute of Technology” and later become “Southwest University of Technology” after accreditation. Keep in mind, though, that rebranding can have marketing implications, so plan for that if it’s your route.

It’s worth contrasting this with Utah’s approach: Utah doesn’t restrict name usage, which is why Utah edged out Arizona for the #2 spot. But in everything else, Arizona is on par with the top states for ease of opening.

Academic and Accreditation Planning: While Arizona won’t stop you from opening without accreditation, they do want to see that you have a plan for it. As part of your application, Arizona requires either proof of accreditation for each degree program or a detailed plan and timeline for obtaining accreditation. This means you should identify which accrediting body you intend to seek, when you’ll apply, steps you’ll take (self-study, candidacy, etc.), and include any initial correspondence with that accreditor if available. You don’t need to be accredited to get the license, but you should demonstrate you’re serious about pursuing it. The Board may give extra scrutiny to unaccredited degree programs during review, checking that your curriculum, faculty, and resources meet a quality threshold that could achieve accreditation when evaluated. Moreover, Arizona typically conducts a site visit for new schools (either before approval or shortly after opening). During this visit, they verify that your facilities match what you promised and that you’re prepared to run classes properly. This on-site inspection is part of ensuring quality control since there’s no accreditor vouching for you yet.

After you’re licensed, if you remain unaccredited, Arizona will likely renew your license with conditional status for some period of years as you make progress towards accreditation. They generally expect that a degree-granting institution will eventually get accredited, but Arizona doesn’t set a rigid deadline in statutes like Virginia does. In practice, you should aim for accreditation within 5-6 years in Arizona to stay in good graces. If you show progress (candidacy granted, etc.), the state will continue renewing your license (often as a “provisional” license until you achieve the goal).

Arizona’s Appeal: Beyond the licensing process, Arizona offers a favorable environment to operate. The state has relatively low taxes on businesses and individuals. It does not levy a personal income tax on out-of-state owners (if you reside elsewhere, you only worry about AZ taxes on income earned in AZ, and corporate taxes are moderate). Arizona’s population is growing, especially in cities like Phoenix and Tucson, which means a growing pool of potential students. It also attracts many out-of-state students for its public and private universities (great climate, reasonable cost of living, and a thriving economy in sectors like tech and healthcare). As a new college, you can tap into that narrative. For example, you might market that students can enjoy year-round sunshine and abundant internships in Arizona’s expanding industries. Also, Arizona is quite friendly to online education and is part of the National Council for State Authorization Reciprocity Agreements (NC-SARA) for distance learning (meaning once you’re licensed and accredited, it’s easy to offer online programs to students in 49 other states).

Example: Suppose an entrepreneur team from California wants to launch a coding-focused college but is deterred by California’s red tape. They look to Arizona, incorporate a new entity, and apply to AZPPSE. They call it “Tech Innovators Institute” to avoid the university name issue. They prepare a strong application, including curriculum for a BS in Software Engineering and a plan to seek accreditation from a U.S. Department of Education-recognized agency within 3 years. The Board reviews their materials, finds them comprehensive, and after a site visit to their Phoenix facility, approves the license in one Board cycle (about 3 months). They post a $15,000 bond as required. With state approval in hand, the school starts recruiting students (though they can’t yet say “Tech Innovators University,” students are made aware it’s a new institute working towards accreditation). Because they didn’t insist on the “university” title immediately, they got to market faster. A few years later, they achieve accreditation, change their name to “Tech Innovators University,” and continue growth with full legitimacy.

In summary, Arizona is a top-tier choice to open a college or university thanks to its efficient process, reasonable costs, and supportive climate for education ventures. Just plan around the naming restriction if accreditation will take time, and be ready to follow through on your accreditation roadmap. With that in hand, Arizona can be as welcoming as Florida and Utah for new institutions.

Honorable Mentions: Middle-Ground States

While Florida, Utah, and Arizona are our leaders, there are a few other states that deserve mention for being moderately friendly—neither as easy as the top three, nor as difficult as the worst five (which we’ll discuss next). In 2026, Texas and Tennessee stand out in this middle category. These states have somewhat lengthier or stricter processes than the top three, but still offer decent environments to launch a college if you navigate the requirements.

• Texas: The Lone Star State is an economic powerhouse with a large population (and many college-bound students), making it attractive despite a moderately complex approval process. Texas requires new degree-granting institutions to get a Certificate of Authority from the Texas Higher Education Coordinating Board. This process involves a detailed proposal and often a review committee evaluation. Texas does not demand accreditation at start, but it expects a plan for achieving accreditation and typically limits how long you can operate unaccredited. A new school usually gets a Certificate of Authority for a 2-year period, renewable up to ~6 years, by which time the state expects you to have made significant progress toward accreditation (or else justify why not). The timeline for initial approval in Texas can be around 6 to 12 months – slower than Florida or Arizona, but not outrageous. One challenge is that Texas’s Board meets quarterly and the paperwork is extensive, so you must prepare thoroughly. On the plus side, Texas, like Florida, has no state personal income tax, which makes it financially appealing to establish a business there. The operating costs (rent, salaries) can be higher in big cities like Austin or Dallas, but places like Houston and San Antonio still have moderate costs of living. Texas’s booming industries (energy, tech, healthcare) can provide strong partnerships for a new college’s programs. Overall, if you’re willing to handle a bit more bureaucracy initially, Texas can reward you with a robust market and friendly long-term business climate.
  
  
• Tennessee: Tennessee’s higher education oversight is through the Tennessee Higher Education Commission (THEC) for degree-granting institutions. The state requires a postsecondary authorization, and the process sits somewhere between Arizona and Virginia in difficulty. You’ll need to submit an application with details on programs, facilities, finances, and often have a surety bond (Tennessee requires a bond, amount varying by expected tuition revenue). The approval timeline is usually moderate – roughly 6 months to a year. Tennessee doesn’t outright prohibit “university” in the name of an unaccredited school, but they do carefully vet any new institution’s quality. If anything, Tennessee’s main drawback is the detailed curriculum and faculty qualifications scrutiny: you need to show that instructors have appropriate degrees (usually at least one degree level above what they’ll teach). Assuming you have that lined up, approval is attainable. Tennessee’s climate for running a college is quite good: the state has a low tax burden (no personal wage income tax, though there is tax on some investment income that’s being phased out) and reasonable cost of living. It’s home to vibrant cities like Nashville (a burgeoning hub for education and health sciences) and Memphis, as well as college towns like Knoxville. Students in Tennessee benefit from lottery-funded scholarship programs, which can indirectly help private colleges by fostering a culture of college attendance. For an investor, Tennessee is a solid middle option—especially if your college can plug into local strengths (for example, music business programs in Nashville, or logistics/supply chain programs in Memphis).
  
  

In addition to Texas and Tennessee, many other states fall in a middle range. States like Georgia, North Carolina, or Illinois have processes that are neither exceedingly quick nor insurmountably difficult. They usually require about a year for approval and come with moderate fees and some level of oversight like site visits or surety bonds. If you have a specific reason to target one of these states (say, you want to be in Atlanta for its international airport and corporate presence, or in Chicago for its academic ecosystem), it might be worth the extra steps. But absent a strategic reason, choosing one of the top three or a middle-ground state like Texas often makes life easier for a new institution.

5 States to Approach with Caution (Not Recommended in 2026)

Just as some states have rolled out the red carpet for new colleges, others unfortunately line the path with red tape. In 2026, the following five states rank as the most difficult places to open a college or university, due to a combination of extensive regulatory hurdles, long timelines, and high costs or restrictions: New York, Virginia, California, Colorado, and Nevada. If speed and ease are priorities, you might want to avoid these (or at least go in with eyes wide open and a lot of patience and capital). Below is a comparison of why these states are challenging:

Table 2. “Not Recommended” States in 2026 – Key Challenges

Now, let’s discuss each of these briefly:

New York – Extensive Scrutiny and Long Delays

New York is home to many prestigious colleges, but starting a new college in New York is one of the most challenging feats in higher education. The process is overseen by the New York State Education Department (NYSED) and ultimately the Board of Regents, which is the body that grants degree authority (via a charter or consent). Expect an arduous journey. New York requires a comprehensive application that covers virtually every aspect of the proposed institution: mission, governance, finances, curricula, faculty, facilities, and need/demand for the school. After submitting a Notification of Intent to apply and then the full application, NYSED staff and outside evaluators will conduct in-depth reviews. They will likely hold meetings (capacity interviews) with your leadership to vet your capabilities. They will also perform a site inspection of your facilities to ensure they meet standards. Furthermore, New York uniquely does a “canvass” of existing institutions – meaning NYSED will inform other colleges in the state about your proposed school and programs, giving them a chance to comment or object. If a nearby college claims your program duplicates theirs and there’s no need, that can complicate your case (though it won’t automatically kill it). All these steps take considerable time.

The final decision rests with the Board of Regents, which meets monthly, but only certain meetings might address new degree applications. Even after NYSED staff recommend approval, you wait for the Regents to vote. The Regents typically grant a Provisional Charter for, say, 5 years to start. During that provisional period, your school will be monitored and expected to achieve accreditation and prove itself before getting a permanent charter.

In terms of timeline, 18 months is considered fast in New York, and it often takes longer. NYSED itself notes that 6–12 months after a complete application is an optimistic scenario, and complex proposals “can take 18+ months”. We have seen cases of 2+ years, even up to 3 years, for approval. The bureaucracy is significant. New York’s high standards mean many rounds of questions and revisions. And because you cannot enroll students or collect tuition until the Regents grant the charter, you’ll be in limbo incurring costs. For instance, you likely must have a facility ready (or at least nearly ready) to show NYSED during the review, and you need faculty lined up (maybe even hired) to demonstrate you can deliver the programs. That means spending a lot of money upfront. A real-world example: how much does it cost to open a college or university in a tough state like New York? Easily in the high six figures to millions in seed capital – because you’ll pay rent, utilities, insurance, and perhaps staff for 1-2 years with zero revenue while awaiting approval.

Unless there is a compelling reason (e.g., your college must be in New York City for strategic reasons or you have local backing), most entrepreneurs should reconsider New York as a launch state. Some opt to open in a friendlier state and maybe plan a New York branch down the line. If you do brave New York, hiring experts and consultants who know the state’s Education Department and Regents expectations is a must. It’s an “academic” approval process in every sense – very much about proving educational merit and need.

Virginia – Structured Process with Accreditation Deadline

Virginia’s State Council of Higher Education for Virginia (SCHEV) regulates new colleges through a certification process that is rigorous in its own way. The process is clearly defined with two phases (a “pre-application” phase and then a full application), which is helpful, but there’s no cutting corners on the content. One unique aspect: SCHEV requires all prospective new school owners to attend a New School Orientation workshop before applying. These orientations happen roughly every 6 weeks and cost $150 per person. It’s a half-day or full-day session where SCHEV explains the rules and expectations. They won’t even accept your application if you haven’t completed this step, which introduces an initial scheduling delay (you might have to wait a month or more for the next session).

After orientation, you file an Intent to Operate form along with background check forms for all owners and key staff. SCHEV will vet your proposed name at this stage and check that no disqualifying info (like criminal history) surfaces for the school’s leaders. Virginia is one of the few states that has a formal name reservation step – they want to ensure your institution’s name isn’t misleading or too close to another entity, and they’ll approve it before you proceed. Once you get the green light on intent and name, you compile the full application, which is a massive package similar to New York’s in scope. Some key elements include: detailed program proposals, faculty rosters with CVs and transcripts, a business plan with 3-year financial projections, proof of financial stability (often personal financials or audited statements if available), facility leases and local occupancy permits, a catalog and student handbook draft, among many other documents. Virginia also requires a surety instrument (bond or letter of credit) to cover unearned tuition, typically at least $20,000 for a new school. You must have this lined up when applying.

The content must address accreditation plans: if unaccredited, you need an explicit plan outlining when and with whom you’ll seek accreditation, because Virginia will only let you operate for so long without it. By law, a new Virginia institution must gain accreditation within ~6 years of starting instruction. SCHEV can extend this to 8 years in some cases, but it’s a hard stop generally. This means as a founder you are committing to achieving recognized accreditation (usually regional or national) on a relatively fixed timeline. If you fail to do so, SCHEV can refuse to renew your certificate to operate. This adds pressure and essentially forces you to allocate resources to accreditation efforts from day one (hiring credentialed faculty, assessment processes, etc.). The upside is Virginia does allow you to operate in those initial years and even to call yourself a “University” or “College” in the meantime, but you’re on the clock.

Timeline-wise, Virginia’s steps add up. It might take 1-2 months to complete orientation and intent review. The full application review by SCHEV staff often takes around 3-6 months depending on completeness. SCHEV may come back with questions or required changes, which you must respond to, adding more weeks. Then, once staff are satisfied, they schedule you for consideration (possibly a presentation) at a SCHEV Council meeting (those are roughly quarterly). All told, getting the initial Certificate to Operate can easily be 12 months, and sometimes over a year if any part of the process is delayed.

Operating in Virginia also means dealing with fairly high costs. Northern Virginia, for instance, has living costs similar to the D.C. area. You’ll need to have a facility (Virginia requires a Certificate of Occupancy and likely a fire inspection, etc., included in your application). Faculty must be contracted and ready to teach—often SCHEV will ask for signed conditional offer letters to prove instructors will come on board once you’re approved. All these pre-operational expenses add up. It’s not as extreme as California, but still significant.

In short, Virginia is do-able if you are prepared for a very orderly, somewhat slow march through compliance checkpoints. It doesn’t have unpredictability; it’s just a lot of steps, and no shortcuts. For founders who value Virginia’s location (proximity to Washington D.C., or access to Virginia’s student population and industries like defense and cybersecurity), it may be worth it. But if you’re looking purely for ease, Virginia would not be the first choice.

California – Slow and Costly (A Cautionary Tale)

California’s burdens on new postsecondary institutions have become so notorious that some consultants (including us) actively advise clients to consider other states first. This is a dramatic shift, because decades ago California was a hub for private career colleges. Now, the state’s well-intentioned consumer protection agency, the BPPE, has struggled with resource issues and stringent laws, creating a perfect storm of delay and expense.

Approval Time: As noted, recent official reports show an average of 522 days (18 months) just to get initial review done after an analyst is assigned, plus an initial queue wait of 5 months before an analyst even starts on a new application. That’s roughly 24 months total on average. Shockingly, some applications have sat for upwards of 3 years without final action. This means if you started today, you might not be teaching students until 2027 or 2028 in the worst case. The BPPE has nearly 200 staff, but processes only a few dozen new school applications per year, and yet it’s backlogged. So the bureaucracy moves at a glacial pace.

Upfront Requirements: California’s regulations require a completeness that borders on overkill, especially given the long wait. For example, you must submit signed employment agreements for all faculty you plan to hire, as part of your initial application. This means you have to recruit and essentially hire instructors well before you ever open – and then keep them “on hold” (or paying them to do curriculum work) for possibly 2+ years while BPPE processes your application. Most talented faculty won’t sit around unpaid for years, so practically you end up hiring at least some core staff and paying them during the wait. Similarly, you need a fully set-up campus location lease and even must have library resources and a custodian of records arranged. Even if your plan is to be an online university, California insists on a physical office in the state with paper records files and a sign on the door. These “old school” mandates (like the fireproof cabinet for student records) add cost and feel out of sync with modern online education. Moreover, because the process takes so long, you’ll be paying rent on that facility potentially for years with no students. One calculation in a BPPE critique: a modest 3,000 sq ft facility in California could easily cost ~$200,000 per year; over two years that’s ~$400,000 spent before you earn a dime. Not to mention California’s labor costs – the state has one of the highest median salaries, so paying faculty during idle time is extremely expensive.

California also mandates detailed financial planning: you must show pro formas proving solvency and often enough cash to operate for a year. The scrutiny is high because the state has seen diploma mills in the past and is very cautious now. It’s not that other states don’t check financials – they do – but California’s demand to sustain pre-operational expenses for so long sets a much higher capital requirement to start.

Accreditation and Name: While California doesn’t force you to be accredited to get state approval, they have a rule that only accredited institutions can use certain terms like “University” in their names or offer degrees above a certain level. For instance, an unaccredited institution in California might only be approved to grant up to bachelor’s degrees, and can’t call itself “University” until it has accreditation (the BPPE often gives unaccredited schools the status of e.g. “Institution” or “College” but not “University” until proof of accreditation is submitted). Additionally, California has separate pathways: one can apply “by means of accreditation” (if already accredited elsewhere, which few startups are), or as a full unaccredited approval which is the 24-month saga we described

Another factor: California is the only state not participating in NC-SARA, the interstate agreement for online education. This means if you open in California and want to teach online students from other states, you’ll need to individually comply with each other state’s authorization requirements (unless those students’ states exempt very small enrollments). In contrast, if you open in, say, Arizona or Florida and get accredited, you can join SARA and then easily enroll students from 49 states. California’s absence from SARA makes it an island; even existing California universities find that a hassle for their online programs.

Bottom Line: Unless you have deep pockets and a burning reason to be in California (perhaps your institution has a mission that ties specifically to California’s population or industries), opening a new college there in 2026 is, frankly, “not recommended”. It’s telling that even California’s own data highlights how few new schools get through and how long it takes. Many education entrepreneurs have started looking to nearby Arizona or Texas to launch instead, and maybe plan to expand to California later once they’re established (or avoid it entirely). California’s market is huge and would benefit from more quality private colleges (as evidenced by students leaving the state for education), but the current regulatory climate is a deterrent.

Colorado – High Standards and Fees

Colorado might seem surprising on this “difficult” list, because it’s not often in the same conversation as California or New York regarding regulation. But for private degree-granting institutions, Colorado imposes a structured but strict authorization process under its Degree Authorization Act. The state’s Department of Higher Education (DHE) and the Colorado Commission on Higher Education (CCHE) ensure that any new college either is accredited or is on track to get accredited.

If you come to Colorado with accreditation already (say you’re an established out-of-state college opening a branch campus), the process is simpler (Full Authorization or a shorter Provisional authorization if it’s an accredited out-of-state program). But as a new institution with no accreditation, you must seek Provisional Authorization to operate. To approve that, Colorado requires proof that you understand accreditation standards and have the resources and plan to meet them in a reasonable time. They might ask for evidence like a consultation with an accreditor or a timeline of when you’ll apply to one.

Colorado’s steps include a preliminary questionnaire, a mandatory in-person meeting with DHE staff to discuss your proposal, then a full application, and a review by an external team of evaluators (subject-matter experts) who will report on your readiness. That external team aspect is almost like a mini-accreditation review—people will come look at your plans, facilities, curriculum, and give a thumbs-up or list concerns. Only if their report is favorable will the Department recommend CCHE to approve your Certificate of Authorization. If the team finds major problems, you might have to fix those and even reapply in a worst-case scenario.

Colorado also charges high fees that make it an expensive state to start in. The application fee is currently $10,000, which is non-trivial for a startup budget. And a $5,000 surety bond must be posted once authorized (refundable if you close without incident, but still tying up capital). This is more expensive than Arizona or even New York’s fees. If your application needs significant revision, Colorado can require a whole new application and another fee, which is painful.

Timewise, Colorado is not as slow as New York/CA, but you’re looking at close to a year in many cases. The scheduling of the site visit and CCHE meeting can introduce gaps. For example, you submit documents, wait a couple months for the evaluation team to be arranged and do their visit/report, respond to any issues, then wait for the next CCHE meeting (they meet bimonthly). The state’s own guideline suggests steps 1-7 in their process can take around 6 months in an ideal scenario, but in practice, expect longer with back-and-forth.

Colorado expects you to get accredited within a defined period as well. They usually align with whatever timeline your chosen accreditor has. Often provisional authorization gets renewed annually until accreditation, but if years pass without sufficient progress, Colorado could revoke your status. So, like Virginia, it’s not a state to operate indefinitely unaccredited.

All in all, Colorado made our “not recommended” list mainly because: high upfront cost, a demanding evaluation process (which could prematurely kill a marginal idea before it has a chance to prove itself), and the accreditation requirement pressure. If you have strong backing and academic quality from the get-go, you can succeed in Colorado. But for a lean startup college, it would be a challenging environment. The one counterpoint: Colorado is a SARA member, so once you do get going and accredited, it’s easier to offer online courses nationally. And the state has a growing population and high college attendance rates, so the student market is solid. It’s just getting through the front door that’s hard.

Nevada – Provisional Licensing and Limited Windows

Nevada rounds out our list because, although it might not have as elaborate a process as New York or California, it has its own hurdles that can significantly slow or complicate a new college launch. Nevada’s Commission on Postsecondary Education (CPE) handles licensing, and they require new institutions to first obtain a provisional license. This is essentially a temporary approval that lets you operate under heightened monitoring for a period (often one year). During that provisional period, the CPE will conduct audits or site visits (they call them “provisional license audits”) at around 4 months and 12 months into operations Only if you pass those audits do you get a full, non-provisional license.

The effect is that you cannot truly relax even after your initial approval; you’re operating with a target on your back to prove yourself quickly. If the CPE finds issues in those audits (like your enrollment reports, instructor qualifications, facility, or compliance with enrollment agreements), they could extend the provisional status or even yank the license. This makes Nevada less friendly to newcomers who are still ironing out kinks in their first year.

Another limiter is the quarterly meeting schedule. If you miss the deadline for a meeting, you wait for the next one. For example, say the Commission meets in February and you weren’t ready; the next meeting might be May, then August, then November. So timing your application submission is crucial, and even then, if agendas are full, you might get pushed to the next meeting.

Nevada also has a relatively small population with most people in two metro areas (Las Vegas and Reno). If your college concept needs a big local student base, Nevada might not supply that as readily as, say, Texas or Florida. Many Nevadans also attend college out-of-state or online, given the limited number of local institutions historically. So a new entrant has to work to attract students. On the other hand, Las Vegas’s economy in hospitality, entertainment, and the growing tech sector could be a niche to tap if your programs align.

From a compliance standpoint, Nevada requires a surety bond (amount is calculated based on a percentage of anticipated gross tuition, similar to other states). They also participate in NC-SARA, which is a plus if you get that far (accredited and licensed). However, Nevada has had issues in the past with some questionable institutions, so the CPE can be a bit conservative in approvals and oversight.

If one is determined, Nevada is not impossible. But given that right next door Arizona is much easier, it often makes sense to launch in Arizona and perhaps consider a Nevada branch later. The climate (business-wise) in Nevada is generally pro-business in terms of taxes (Nevada is another state with no personal income tax), but that doesn’t overcome the education commission’s procedural gauntlet you must run.

In sum, while the “difficult five” each have their particular barriers, the common theme is time and money. These states will require more time to get approval and more upfront investment to meet requirements and endure the process. They’re not ideal for a fast, lean startup approach. If you do choose one of them, ensure you have at least double the budget and time you would allocate for a friendly state, and engage with legal and accreditation experts early.

Other Key Considerations: Accreditation, SEVIS, and Costs

Thus far, we’ve focused on state authorization mechanics, but savvy founders know that picking the “best state” is not solely about the fastest license. There are broader strategic factors. In this closing section, we address a few of these: the role of accreditation, the need for SEVIS certification if you plan to enroll international students, and general considerations of costs and talent that vary by region.

Accreditation (and Why an “Accreditation Consultant” Helps): Gaining institutional accreditation is often the endgame for new colleges, because accreditation is typically required for your students to access federal financial aid and for your degrees to have wide acceptance (graduate school admissions, employer recognition, etc.). Different states treat accreditation differently: some (like New York, Virginia, Colorado) bake it into their approval conditions, while others (Florida, Utah, Arizona) leave it up to you to pursue on your own timeline. Regardless, you should plan from day one how you’ll achieve accreditation. This involves selecting a recognized accrediting agency (e.g., a regional accreditor like SACSCOC for the Southeast U.S., or a national one like ACCSC or DEAC for career-focused colleges) and understanding their standards. It’s highly advisable to bring in an accreditation consultant early on – this is an expert who can guide you in meeting accreditation criteria and preparing your self-study reports. They can help you design your assessment processes, faculty hiring standards, governance policies, etc., to align with what accreditors expect. Think of it as laying the foundation correctly so that when the time comes, the accreditation visit is a smoother hurdle. For instance, an accreditation consultant would ensure you have a robust student learning outcomes assessment from your first cohort, which is something accreditors love to see.

Keep in mind that some accrediting agencies require a school to be in operation for a certain period (often 1-2 years and with graduates) before it can even apply, while others have candidacy stages that you can enter sooner. Align your choice of state with those timelines. For example, if you open in Florida and want quick accreditation, you might choose an agency known for working with new institutions proactively. Conversely, in a state like New York, you’ll probably be aiming for regional accreditation eventually (since the state’s own standards are high, you might as well go for the gold standard).

One more note: Accreditation and naming. We saw that some states restrict the use of “university” until accredited. Beyond state law, it’s also about perception. If you open unaccredited and call yourself a university (in states that allow it), expect questions from students about legitimacy. You must be transparent that you’re state-licensed and pursuing accreditation. Accreditation matters to the public. As one college founder in Utah explained, the question “Are you accredited?” comes up constantly. Some choose to remain unaccredited for philosophical reasons, but they have to work hard to prove their quality through other outcomes. Most founders, however, will want to get that accreditation milestone done.

International Students and SEVIS: If part of your business model is attracting students from overseas (who would study in the U.S. on F-1 visas), you must obtain SEVP certification for your school. This allows you to issue the Form I-20, which foreign students use to get an F-1 student visa. Importantly, to even apply for SEVP (through ICE’s Student and Exchange Visitor Program), a school in most cases must be accredited or in some cases in the process of obtaining accreditation. In fact, ICE’s guidelines list being accredited by a recognized agency as a top eligibility criterion for SEVP certification. There are some exceptions (for instance, English language programs can be accredited by a specialized body, and vocational M-1 programs have their own rules), but generally, no accreditation = no international students on F-1 visas. This means, from a timing perspective, even if you open in Florida in 6 months, you won’t be able to bring in, say, students from India or Brazil immediately unless you somehow got a waiver (unlikely) or were accredited from inception. So, if the international market is key for you, you should prioritize getting to accreditation fast. That might influence your state choice indirectly – e.g., a state that doesn’t hamper your progress, or one that the accrediting body is comfortable working with.

Also note: SEVP certification itself is a process that takes several months (typically 6+ months) and involves an on-site visit by ICE. You apply by filing Form I-17 and paying fees, after you’re state-licensed and operational. You’ll need to show you meet requirements like having physical facilities, qualified instructors, and sound finances, and again, usually that accreditation piece. Many new schools engage specialized consultants for SEVP as well, because it’s another bureaucratic process (albeit simpler than accreditation). If your school’s appeal is global (like an American university targeting international students), then plan your timeline such that perhaps by year 2 or 3, you have accreditation (even if initial or candidacy) and can then apply for SEVIS certification. In the meantime, you might enroll domestic students or those already in the U.S.

One more tip: states with big international student populations (California, New York, Florida, Texas) naturally have more resources and communities for that. If you open in a place like Utah or Tennessee, you can still do fine, but you’ll be doing more from scratch to recruit abroad. Florida, for instance, already hosts tens of thousands of international students, so being “in Florida” is itself a draw. This doesn’t override the state approval issues, but it’s something to weigh if international recruitment is central to your plan.

Cost Factors and Faculty/Talent Pool: Choosing the best state isn’t purely regulatory. Operating costs and access to human capital are practical concerns:

• Startup and Operating Costs: These include rent or mortgage for facilities, utilities, salaries, marketing, etc. They vary widely by state and city. For example, opening in a major metro (New York City, San Francisco) means exorbitant rents and salaries, whereas opening in a smaller city (Phoenix, Orlando, Salt Lake City) generally means lower costs. Our earlier example from California highlighted how a high-cost location can burn cash fast when there are delays States like Florida, Texas, Arizona tend to have lower cost of living and doing business than the Northeast or West Coast. Even within states: Northern Virginia is expensive, but if you set up in southern Virginia, costs drop. So think about where your target students are versus what overhead you’ll bear. If your model relies on large facilities (labs, dormitories, etc.), a state with cheaper real estate is a blessing. If you’re primarily online, you still need an office HQ, but you might prioritize states with low taxes since physical presence is minimal.
  
  
• Faculty and Staff Availability: You need qualified faculty to get approved and to teach effectively. States with many existing universities produce a lot of academics (grad students, etc.), which can be a hiring pool. For instance, Boston or California have lots of PhDs roaming around, but those places are hard to open in; however, nearby states (like Arizona, which is near California, or New Hampshire next to Massachusetts) can benefit by attracting those faculty who can’t all find jobs in the saturated markets. Some states have specific talent advantages: California and New York are full of specialized experts, but so is Texas now (think of all the companies moving there). If you open a college in a smaller state, will you convince professors to relocate there? It’s worth considering quality of life and salaries. Florida’s sunshine, for example, is a recruiting tool for faculty as well as students. States with no income tax mean your employees take home more pay, which is an incentive. On the flip side, states with lower average education levels or fewer big cities might not have a ready pool of PhD holders—meaning you might recruit nationally (which costs more in relocation, etc.).
  
  
• Student Market and Income Levels: Part of picking a state is knowing if students there (or who want to go there) can afford your tuition and are seeking what you offer. States vary in higher ed participation and in income. A state like New York has many potential students but also many subsidized public options, so a private startup might struggle unless it has a niche. In contrast, Florida’s growth and relatively fewer private competitors (outside of a few big ones) can mean a good market for a new school. Income levels matter if you are targeting local students who pay tuition out-of-pocket. For example, a pricey private college might find few takers in a low-income region unless financial aid (Title IV) is in play—again coming back to accreditation necessity.
  

Checklist to Decide on a State: In light of everything, how should an investor or entrepreneur decide the best state for their college? Here’s a quick checklist of steps and considerations:

1. Identify your key priorities: Speed to market? Low upfront cost? Access to certain student demographics or industries? This will weigh your decision. (If speed is king, Florida/Utah/Arizona likely beat any other options.)
   
   
2. Research state approval details: As we’ve summarized, some states are clearly easier. Gather the latest info (states update rules occasionally) on fees, timelines, bonds, etc., for a shortlist of states. The connected sources and state agency websites are a good starting point.
   
   
3. Consider where your program fits:
   
   • If it’s largely online, you can technically operate from anywhere—so you might as well base in an easy state to license (your “home state” for approval) and then use SARA for online reach.
     
   • If it’s campus-based, think about student draw. A culinary college might do well in a tourist city (Las Vegas, Orlando) but get less traction elsewhere. A tech institute might benefit from being in a tech hub (maybe Texas or Utah, which have growing tech scenes, versus a rural state).
     
   • If certain licensing or practicum is needed (say, a medical program needing clinical sites), states differ in opportunities for partnerships.
     
     
4. Calculate costs for top 2–3 state choices: Include application fees, legal fees, estimated rent, staff salaries (adjusted for region), required bonds, etc. This will show the financial feasibility. Don’t forget to budget for the “How much does it cost to open a college or university” beyond licensing – developing curriculum, marketing to first class of students, etc., are significant expenses. For instance, marketing for a new institution can easily exceed $100,000 in the first year. If one state saves you money on regulatory overhead, that could be reinvested in marketing or scholarships to boost enrollment.
   
   
5. Factor in accreditation strategy: If one state’s conditions make it easier for you to run the kind of operation that an accreditor expects, that’s a plus. For example, some accreditors expect a certain governance structure (like an independent board). States like New York or Virginia might force you into good habits here, but at a cost. In an easier state, you’ll have to self-impose those standards. Engaging an accreditation consultant (as mentioned) can ensure you don’t become too lax in a lenient state and then face problems when the accreditor visits.
   

After going through these steps, you’ll likely see a frontrunner state emerge for your situation.

Conclusion: Balancing Speed with Strategy

Choosing the best state to open your university is a crucial strategic decision that goes beyond just the quickest licensing route. This 2026 update highlighted that Florida, Utah, and Arizona offer the most welcoming regulatory environments — they enable a faster launch, have reasonable costs, and are generally pro-investor and pro-growth. Florida shines for both domestic and international entrepreneurs with its global appeal, Utah provides simplicity and the cachet of the “university” title from day one (particularly attractive to North American founders), and Arizona combines efficiency with a solid education market (just mind the naming rule). These states can get you from concept to classroom on a comparatively fast track.

On the other hand, states like New York, Virginia, California, Colorado, and Nevada currently pose steep challenges. The “not recommended” status doesn’t mean you can never succeed there; it means the opportunity cost of time and money is high. New York will test every facet of your plan for quality and necessity (taking years to do so), Virginia will make sure you’re built to become accredited and won’t cut you slack if you don’t, California might drain your startup capital before you ever teach a student, and Colorado and Nevada will expect proof of concept and stability at levels that can be hard for a brand-new venture. If you have ample funding, political connections, or a mission that ties you to those locales, you might navigate them — but most emerging education entrepreneurs find greener pastures elsewhere.

Finally, remember that the decision of where to open your college involves many factors. Regulatory ease and speed are important (they’re the focus of this article), but you must also weigh market considerations (student demand, competition), financial factors (taxes, cost of living), talent availability (faculty and staff), and long-term strategic goals. For instance, you might get licensed in 4 months in State A, but if students there aren’t interested in your niche, you gained time but lost on enrollment. Or State B might offer great tax advantages that save you money year over year, even if initial approval took a bit longer.

When making your choice, consider developing a matrix of factors and scoring each state option. Factors could include: approval timeline, initial cost, ongoing cost (taxes, etc.), bond required, naming flexibility, local student population size, local median income or education level, presence of relevant industries (for partnerships/internships), probability of attracting faculty, and any special state incentives (some states offer grants or incentives for certain programs or setting up in certain regions).

To encapsulate our advice: Aim for a state that aligns with your college’s mission and business model, while minimizing unnecessary regulatory friction. For many in 2026, that likely points to places like Florida, Utah, or Arizona – but your unique situation might tilt the scales differently. If you do venture into a tougher state, go in prepared: increase your budget, extend your timeline, and maybe seek extra guidance (legal counsel, consultants) who know that state’s ropes. The goal is to get that first cohort of students in the door and provide them a great education. The sooner and more smoothly you can do that, the stronger foundation you’ll have.

In the end, whether you launch your institution on a beach in Florida or the mountains of Utah or the metropolis of New York, success will require tenacity, regulatory compliance, and educational quality. Choose the environment that gives you the best head start on those fronts. With the right choice and careful planning, you’ll navigate the setup process with fewer headaches and be free to focus on the real mission: educating students and making a positive impact. Good luck on your journey of opening a college or university – the world needs innovative educators, and with the right groundwork, you can build the college of your dreams in the place that sets it up to thrive.

For personalized guidance on opening your college or university in the US, contact Expert Education Consultants (EEC) at +19252089037 or email sandra@experteduconsult.com.

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