It doesn’t matter which of the 50 states in the US you choose to open your business in, you’ll pay business taxes. However, the rates and rules for the taxes you pay in each state will differ greatly. No two states are the same.
While paying business taxes and fees is a necessary evil for private companies, both large and small, if you also want to keep the government functioning, it’s not something most business owners relish. Paying taxes isn’t something anyone enjoys.
However, residents in certain states might find having to pay taxes less of a burden than the citizens of others. Why? Because some states are more tax-friendly than others. Let’s see who has the most business-friendly rates.
Wyoming rates first
It might seem strange that a state in which you probably cannot name even one major corporation as a resident has the best tax system. But it does — in contrast to New York, which is the worst state in the nation with regard to business taxes.
Again, this is strange when you recognize the fact that New York is home to some of the most successful companies in the world.
The rest of the states that rank in the top ten as the most tax-friendly include South Dakota, Nevada, and Alaska. These are followed by Florida, Washington, and Montana. Rounding out the final three spots in the top ten most tax-friendly states are New Hampshire, Utah, and Indiana.
What determines a tax-friendly state?
Graded by the Tax Foundation’s 2014 State Business Tax Climate Index, each of the 50 states is considered and listed from best to worst in terms of tax-friendliness. More than 100 factors are taken into consideration in the creation of this list.
Of those items, some of the most obvious are state and corporate taxes, sales tax, unemployment taxes, and insurance tax policies. Each is considered to determine which states make things the easiest for businesses.
When it comes rating a company, including commercial roofing businesses, good reputation and a solid work ethic are more important than tax rate. Customers like the idea of knowing they can call a company with a stellar reputation in the community to provide them with roofing assistance or whatever other service they require.
Business taxes differ from state to state, but that certainly doesn’t deter businesses from opening in states with less tax-friendly climate. Where there is demand, businesses are ready to provide the supply.