Don’t Want To Be Taxed? Try Starting A Business In These States

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Nobody likes being taxed. Colonists threw perfectly good tea into Boston Harbor to protest British taxation, if my history books didn’t lie to me, and the grumbling among American taxpayers reaches a crescendo well before April 15.

It makes sense, then, that business owners are always looking to settle down in states that offer up a lesser tax burden. Fortunately for all of them—and you?—the Intuit Small Business Blog has that covered.

The blog recently broke down state rankings provided by the Tax Foundation, targeted at giving entrepreneurs and small businesses a good idea of where to put down their roots. The states were judged on corporate income tax, sales tax and the more general business tax climate rating put together by the foundation.

Your best states? Here’s the top 10:

  1. South Dakota
  2. Alaska
  3. Wyoming
  4. Nevada
  5. Florida
  6. Montana
  7. New Hampshire
  8. Delaware
  9. Utah
  10. Indiana

Some of those, such as South Dakota and New Hampshire, have long been associated with favorable tax situations. What may surprise you is the bottom ten, led by New York, California, New Jersey and Connecticut. Those may not be your first choice if you’re leery of being hit with heavy taxes, as so many of us are.

Weigh in on your own experiences in your business’s home state in the comments.


Photo credit to YM at


  1. I was surprised to see that Delaware wasn’t #1, since so my corporations are registered there. But, IIRC, the biggest advantage of incorporating in Delaware isn’t the tax benefits, but more the state legal code.

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