Tax Locations That Are Good For Business
Choosing where to start or expand a business is never easy. The current economic climate makes it difficult to tell what's a sure bet versus what would just be an unnecessary draw on already strained resources. However, one way to help narrow the list is to consider what locations are known to be particularly favorable to companies. These tax locations offer low rates and strong growth.
Utah
Utah is one of the most favorable tax locations, with a low rate for large corporations (5%) and a lot of growth. It is known for having a particularly active, vibrant, and growing population, as well as low costs for energy. All of these combine to make it one of the most favorable choices for a headquarters or a substantial expansion. In addition, its growing cities offer a good market for franchises and other new locally based ventures.
Virginia
Favorable to businesses and bordering the DC area in the north, Virginia can be a good location for expansion. The tax rates and structures here are particularly good, placing a small burden on even large companies. In addition, VA currently shows a positive trend of Gross State Product (GSP) growth, which helps contribute to continued business-friendly policies.
North Carolina
Located just south of Virginia, this state has shown a consistent track record of economically friendly decisions. It is one of the most company-friendly tax locations, with low costs and a strong supply of educated and capable labor.
Where Not To Go
Any of the above states would likely be a good candidate for a company seeking to expand. While it is sometimes possible to choose the exact state to select for expansion, you may also want to select the least bad option from a list of possible destinations. Places to avoid include Missouri, New Mexico, Delaware, Connecticut, Indiana, Wisconsin, Illinois, Alaska, West Virginia, New Jersey, Vermont, Mississippi, Michigan, Rhode Island, Hawaii, Maine, or California. Locations in these states would likely be subject to heavy taxation, excessively high costs, and/or a lack of labor force. Many businesses are surprised to discover how sharply negative the California climate has become. New regulations and fees in addition to soaring costs make it unattractive despite its large economy.
Although this list can be a good guideline, it is certainly possible for a new venture or an expansion to thrive somewhere that was not recommended, or to fail in a suggested location. The key is to evaluate the totality of all factors before making a move. Are prospects favorable for your industry? Do you have the necessary infrastructure? How does the competition look? If all of these are good and you've found a spot in a favorable location in terms of taxes, fees, and labor statistics, then you can feel comfortable that you've done what you can to maximize your chances of success.
Utah
Utah is one of the most favorable tax locations, with a low rate for large corporations (5%) and a lot of growth. It is known for having a particularly active, vibrant, and growing population, as well as low costs for energy. All of these combine to make it one of the most favorable choices for a headquarters or a substantial expansion. In addition, its growing cities offer a good market for franchises and other new locally based ventures.
Virginia
Favorable to businesses and bordering the DC area in the north, Virginia can be a good location for expansion. The tax rates and structures here are particularly good, placing a small burden on even large companies. In addition, VA currently shows a positive trend of Gross State Product (GSP) growth, which helps contribute to continued business-friendly policies.
North Carolina
Located just south of Virginia, this state has shown a consistent track record of economically friendly decisions. It is one of the most company-friendly tax locations, with low costs and a strong supply of educated and capable labor.
Where Not To Go
Any of the above states would likely be a good candidate for a company seeking to expand. While it is sometimes possible to choose the exact state to select for expansion, you may also want to select the least bad option from a list of possible destinations. Places to avoid include Missouri, New Mexico, Delaware, Connecticut, Indiana, Wisconsin, Illinois, Alaska, West Virginia, New Jersey, Vermont, Mississippi, Michigan, Rhode Island, Hawaii, Maine, or California. Locations in these states would likely be subject to heavy taxation, excessively high costs, and/or a lack of labor force. Many businesses are surprised to discover how sharply negative the California climate has become. New regulations and fees in addition to soaring costs make it unattractive despite its large economy.
Although this list can be a good guideline, it is certainly possible for a new venture or an expansion to thrive somewhere that was not recommended, or to fail in a suggested location. The key is to evaluate the totality of all factors before making a move. Are prospects favorable for your industry? Do you have the necessary infrastructure? How does the competition look? If all of these are good and you've found a spot in a favorable location in terms of taxes, fees, and labor statistics, then you can feel comfortable that you've done what you can to maximize your chances of success.
Source...