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Survey: South Dakota, Texas and Nevada Among U.S. States with Lowest Small Business Taxes
Published on Apr 20, 2011
Read 'Survey: South Dakota, Texas and Nevada Among U.S. States with Lowest Small Business Taxes' at 'Time to Start Up,' the small business blog by BizFilings.
The difference the local tax climate can make for an entrepreneur in the process of incorporating a business is enormous, according to some experts. Fortunately, the Small Business and Entrepreneurship Council recently released a study ranking the states by the small-business-friendliness of their tax climates.
The biggest no-go area for startups, according to the researchers, was the District of Columbia, which placed dead last in the rankings. Other states that took the biggest bites out of a small business owner's profits included Iowa, New York, New Jersey and Minnesota.
However, other states were far more business-friendly. SBEC found that Texas, South Dakota, Wyoming, Washington and Nevada were best in terms of tax climate, meaning that payments were less of an issue to small businesses in those locations.
Experts point out, however, that other legal concerns could be important to an entrepreneur, particularly if he or she is opening a business in an industry where local regulations vary significantly. Additionally, financial disclosure regulations differ among states, which is why many firms are headquartered in Delaware, taking advantage of less onerous statutes.