Texas has the best 2011 business climate in the U.S., according to Site Selection magazine.

The Lone Star State beat out North Carolina, which has held the No. 1 spot for the past 10 years.

The magazine’s selection was based on factors including a survey of corporate real estate executives, a tax climate analysis and the state’s performance on a database that tracks new business activity. Executives who participated in the survey ranked Texas the best state for business based on its lack of red tape, financial assistance and government cooperation with businesses.

The list of the states with the top 10 business climates in the U.S. is published in the November issue of Site Selection magazine. Other top states include Georgia in the No. 2 position and North Carolina in the No. 3 position.

To learn more about how Texas is fostering its booming business climate, view Grow Texas, a Texas Business Journals special section about recent economic progress in the state’s four major metropolitan areas: Houston, Austin, Dallas and San Antonio.