Taxing Issues For Startups
Nearly every startup faces a cash crunch. After all, there's more money going out than coming in as a business develops its products, hires its core staff and spends capital to build the company's foundation. Having to pay taxes as a startup is getting off the ground can be yet another obstacle.
As part of the 2018 Best (And Worst) States For Starting A Solution Provider Business, CRN looked at the 2018 top corporate income tax rate (as of Jan. 1, 2018), state and local sales taxes (as of Jan. 1, 2018), property taxes and unemployment insurance taxes levied in each state. (Individual income tax rates were considered as part of the "personal cost of living/quality of life" criteria.) Most of the tax data was obtained from the Tax Foundation.
In addition to specific tax rates, we considered the overall rankings on the Tax Foundation's 2018 State Business Climate Index and the Small Business & Entrepreneurship Council's Small Business Tax Index rank.
For criteria that's ranked, the lower the number, the lower the tax burden.