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Should I create separate directories for different states?

I am putting together an online directory for a culinary niche I am involved with. Is it better to make one big website with the specific business listings for each state on separate pages? Sort of like one pillar page and then 20-30 separate pages for each of the individual businesses.

Or is it better to create a separate website for each state and then create links from each state's website to every other state's website? Not sure which way to go about this.

I know that overhead will be higher for 50 separate websites, but if I am willing to eat that cost, which option is better for SEO? The ultimate goal is to drive traffic and monetize. Either by selling ad space or by charging the specific businesses for a listing on the website.

submitted by /u/NvidiaNovice
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