Are you looking to start a small business? It's important to consider the regulations and taxes of the state you're in, as they can have a major impact on your success. According to a survey by Thumbtack, the worst states for business are California, New York, Illinois, New Jersey and Washington. These states have remained at the bottom of the list for the past five years. The survey asked small business owners to rate how friendly their state government is to various regulations.
This can be a major factor in determining whether or not a business will be successful. For example, Illinois recently changed its treatment of net operating losses, making it less business-friendly. On the other hand, some states are more tax-friendly for businesses. The best states for paying small business taxes include Wyoming, South Dakota, and Alaska.
If you're looking for a warm climate, Florida is also one of the most tax-friendly states for businesses. Business incubators are another great way to support startups. These cost-effective programs provide office space and professional services and advice to help businesses succeed. The survey also asked respondents to rate which states had the fastest growing small businesses.
Mississippi, Nebraska, Maine and Texas all ranked highly in this category. When choosing where to open a business, it's important to consider more than just taxes and regulations. Think about where you would like to live and prepare for retirement. Property taxes on privately owned properties of businesses and individuals can also be a factor in your decision.
Overall, the survey reflects small business owners' frustration with their state governments but also their optimism for the future. Before starting or moving your business, it's important to analyze the tax compatibility of the states you're considering operating in.