Do you want to move your existing company to a state that collects less tax?
Every small business owner wishes to enjoy a favorable market, but not every state can provide it. The huge difference in taxes and other levies across the states also makes it necessary to weigh the options before establishing a business.
If you have had enough where you operate, the only option left is to relocate to a business-friendly state. But where will you be heading to? Your next destination should assure you that things will get better. That is why you have to choose carefully.
Here are five business-friendly states offering the best business tax climate.
1. Move to Iowa
Welcome to one of the most preferred states for businesses seeking the best tax climate. Iowa’s business tax climate is lower than average and does not have a personal income tax, offering businesses a competitive tax climate.
You may also like Iowa because of the following reasons:
- No Personal Property Tax
- Workers’ Compensation
- Iowa Corporate Income Tax
- Sales and Use Tax on Machinery and Equipment
- Well-educated and productive people
Clearly, you won’t owe the IRS or the state business tax when you move to Iowa.
Do you want to move your business to a state that provides tax breaks for small businesses? Welcome to Missouri.
This is one of the more comprehensive states for having a business tax climate, as it doesn’t only have a small sales tax rate but has tax breaks in place for small businesses.
3. Massachusetts Is a Business-Friendly State
Massachusetts receives high marks for having one of the best business tax climates in the nation. Over the last 20 years, the state’s tax rates have fallen in ten of the 11 years, including eight of the previous nine.
Massachusetts is the state with the second-lowest marginal rate on capital gains. Massachusetts has been ranked in the top five for six straight years.
Businesses based in Nebraska get a big tax break. In fact, Nebraska is the only state that doesn’t tax capital gains. Nebraska’s taxes apply only to dividends, interest, and rental income.
By comparison, 40 other states tax capital gains on the same basis. Additionally, Nebraska has no income tax and no estate tax.
5. New Mexico
New Mexico is also one of the few states taxing dividends but has no income tax. Recently, many businesses have been moving to this state, making it one of the biggest destinations for new and established entrepreneurs.
Are you looking for a professional to help with tax-related matters? You need to check out https://www.taxfyle.com/tax-preparation-outsourcing and hit the ground running.
Get Help Registering Your New Business
When you choose to move your business to a business-friendly state, you must meet all the new regulations. You may not be familiar with everything, which is why you need help from professionals.
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