NerdWallet analyzed 126 places in Washington, each with a population of at least 5,000, and Redmond was named the best place to start a business.

Cities with less than 500 businesses were excluded, and they calculated the overall score for each location based on the city’s business climate and economic health using data from the U.S. Census Bureau.

To determine a community’s business climate, they looked at average revenue, percentage of businesses with paid employees and the number of businesses per 100 people. Most small businesses in the U.S. are sole proprietorships without paid employees.

To determine a community’s economic health, they looked at median annual income, median annual housing costs and the unemployment rate.

1. Redmond

According to the study, “Redmond’s 6,200 companies each see an average annual revenue of over $7.3 million, higher than any community on our list. That figure gets a boost from companies such as Microsoft, Nintendo of America and Data I/O, which are all headquartered in Redmond. The presence of those companies and the talent they attract also give a boost to smaller enterprises that complement the city’s tech sector or cater to those living and working in Redmond.”

Population: 55,505

Number of businesses: 6,287

Average annual revenue per business: $7,351,911

Businesses with paid employees: 35.85 percent

Businesses per 100 people: 12.67

Unemployment rate: 4.4 percent

Score: 64.22

2. Woodinville

3. Gig Harbor

4. Fife

5. Issaquah

6. Tukwila

7. Chehalis

8. Bellevue

9. Burlington

10. Poulsbo