Although some experts suggest that the economy is improving, many small business owners are still struggling, while also nervous about the possibility of an across the board tax increase next year. Fortunately, there are some places in this country that offer significant incentives to small businesses. To help all of the entrepreneurs reading my blog, I have put together the following list of tax friendly cities for small business owners.
Although Alaska may not be the ideal climate for everyone, it can be a great place to do business. Both the income and sales tax rates are zero, and property taxes are normal compared to other cities in the country. Another benefit of living in Anchorage is the dividend payments each resident receives from oil-drilling taxes.
Seattle may be one of the wettest cities in the country, but it is also one of the best to do business in. Seattle is also the home of some of the most innovative companies in the world, including Boeing, Microsoft, and Amazon. The state has no income tax, and Seattle is even planning to revise their already business-friendly tax code to encourage more small business owners to move to the city.
Cheyenne is known for how windy it is, but for business owners a little wind is worth the great tax laws. Cheyenne has one of the lowest property taxes in the country, no income tax, and a low local tax burden.
Oregon is infamous for their nonexistent sales tax, and low home prices. Additionally, there is also no retail business license fee in Eugene. Portland is just a couple of hours away, with plenty of great entertainment and dinning options.
Las Vegas, NV
The state of Nevada has the lowest overall tax rate in the country, with no income, estate, franchise corporate, or gift taxes. The city of Las Vegas has an even more favorable tax climate, with low property and sales tax rates. Although the city has been plagued by high foreclosure rates, businesses continue to thrive as tourists continue to pour in from around the world despite the economic downturn.
Des Moines, IA
The city of Des Moines, Iowa has been rated one of the most affordable places to do business in the country. Household incomes are on the rise, as well as employment rates. The cost of doing business in Des Moines is about 15% below the national average, making it the perfect place for a new business owner to set up shop.
North Carolina has a few cities that have been rebounding well through the recession, but Raleigh outshines all of the other nearby cities. Business friendly tax rates, combined with a low cost of living, make the recovering city very appealing to business owners.
Sioux Falls, SD
Like many of the cities on my list Sioux Falls, South Dakota has continued to develop through the recession, attracting new residents and higher business revenue. The city strongly appeals to business owners because of the lack of a state income tax, and other local corporate tax incentives.
Fort Worth, TX
The city of Fort Worth, may be smaller than Dallas, but in many ways it is much better for business owners. They do not charge a license fee for businesses, and property taxes are extremely low. Forth Worth is also the birthplace of American Airlines, and boasts an unemployment rate that is 14 percent below the national average.
Manchester offers a very favorable tax structure for business owners and residents alike. Close enough to reap the tourism from Boston, but more affordable to live and run a business in, Manchester is the last tax friendly city on my list. With no income tax, no sales tax, and low property and auto taxes, Manchester is definitely a great city to open a small business in.