While many economists and lawmakers may disagree, recent reports from the Small Business & Entrepreneurship Council suggest that states' tax systems are intricately linked to their suitability for small businesses.
The most recent Business Tax Index seems to mirror that of last year's Small Business Survival Index, with both placing South Dakota, Texas and Nevada in their top three and both placing the District of Columbia and New Jersey in their bottom three.
More specifically, both noted South Dakota as the best state for small businesses or taxes, and the District of Columbia as the worst. Similarly, Texas ranked highly, while New York and California placed at the bottom.
"Several states in recent years have hiked taxes in response to excessive government spending and declining revenues in a down economy," said Raymond J. Keating, chief economist for SBE Council, in a statement.
"In high-tax states, elected officials have refused to cut spending or slow its growth. The implications for entrepreneurship, small businesses, competitiveness, investment and employment are significant," Keating added.
While budget crises in different states are certainly factors contributing to regions' current tax structures, these surveys alone may be all an entrepreneur needs to decide to form an LLC in Texas.
Tags : ca, incorporation news, ny, small business management, taxes, tx
Posted: Apr 20th, 2011