A new study zeroes in on the states that offer the most tax-friendly environment for small businesses.
The research by SimplifyLLC, a website that focuses on small business development, looked at a spectrum of taxes in the 50 states and Washington, D.C., to come up with a ranking of those most desirable for small business owners.
The website noted that 99.9% of U.S. companies are small businesses and they pay billions of dollars a year in state and federal taxes.
"As inflation and operating expenses have risen, small firms have become increasingly worried about the impact taxes have on their business," SimplifyLLC said.
"Our analysis found that states with no or low personal and corporate income taxes are the most tax-friendly for small businesses, even when they have higher taxes for property, sales and unemployment compared with other states. Yet every state has pros and cons, meaning it’s important to keep your specific situation in mind when choosing where to launch or grow your business."
Here is ascending order are SimplifyLLC's top states for small businesses:
10. Alabama
-Corporate tax rank: 27
-Personal income tax rank: 25
-Property tax rank: 1
-Sales tax rank: 7
-Unemployment tax rank: 1
9. Ohio
-Corporate tax rank: 1
-Personal income tax rank: 14
-Property tax rank: 20
-Sales tax rank: 24
-Unemployment tax rank: 43
8. Missouri
-Corporate tax rank: 8
-Personal income tax rank: 23
-Property tax rank: 17
-Sales tax rank: 12
-Unemployment tax rank: 1
7. Florida
-Corporate tax rank: 20
-Personal income tax rank: 1
-Property tax rank: 23
-Sales tax rank: 25
-Unemployment tax rank: 1
6. North Carolina
-Corporate tax rank: 7
-Personal income tax rank: 19
-Property tax rank: 11
-Sales tax rank: 16
-Unemployment tax rank: 16
5. Texas
-Corporate tax rank: 1
-Personal income tax rank: 1
-Property tax rank: 40
-Sales tax rank: 37
-Unemployment tax rank: 17
4. Wyoming
-Corporate tax rank: 1
-Personal income tax rank: 1
-Property tax rank: 38
-Sales tax rank: 7
-Unemployment tax rank: 36
3. Washington
-Corporate tax rank: 1
-Personal income tax rank: 1
-Property tax rank: 33
-Sales tax rank: 41
-Unemployment tax rank: 1
2. South Dakota
-Corporate tax rank: 1
-Personal income tax rank: 1
-Property tax rank: 24
-Sales tax rank: 14
-Unemployment tax rank: 41
1. Nevada
-Corporate tax rank: 1
-Personal income tax rank: 1
-Property tax rank: 14
-Sales tax rank: 45
-Unemployment tax rank: 1
The full report can be viewed here.
