Tax Preparation
For startups, money is a scare resource. As a young company hires its staff, develops its products and plots its strategy, there's more money going out than coming in. Having to pay taxes – corporate income taxes, sales taxes, unemployment insurance taxes and more – can be tough for a company in startup mode.
As part of the 2019 Best (And Worst) States For Starting A Solution Provider Business, CRN looked at corporate income tax rates, state and local sales taxes, property taxes and unemployment insurance taxes (as of Jan. 1, 2018) 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 (taxfoundation.org).
In addition to specific tax rates, we considered the overall rankings on the Tax Foundation's 2019 State Business Climate Index and the Small Business & Entrepreneurship Council's Small Business Tax Index rank. We also included each state’s fiscal stability rank from the U.S. News and World Reports’ Best States Rankings.
For criteria that's ranked, the lower the number, the lower the tax burden.
