I don't know about you all, but I'm not a fan of paying income taxes on my hard-earned income from my business. Here's a tax-map of every state in the Union, showing their tax policies (it's actually designed for retirees but it works for entrepreneurs too): http://www.kiplinger.com/tools/retiree_map/
Hope this helps you set up your business from a tax-friendly state, and remember that the 8% or so you're paying each year might be the difference between staying in business and going under.
Best of luck,
_____________________
Brian
Rental Agreement Forms
Message Edited by ChristineL on 09-29-2009 10:02 AM
Along with the state of Nevada, eight other states do not impose personal income taxes - Alaska, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. These states are closely followed by Illinois with a low personal income tax rate of 3%.
Nevada is also one of five states that do not impose corporate income tax - including South Dakota, Texas, Washington, and Wyoming. These states are closely followed by Ohio, Alabama, Colorado, and Michigan, all with tax rates of less than 5%, and Mississippi, South Carolina, and Utah have tax rates of 5%.
For more on this topic, see our recent articles on State Tax Requirements - Part 1 and Part 2.
how Does Nevada Compare with other states in terms of taxes? With the amount of property devaulation there I'd expect the state would want to attract investment and cash injection.
The best and worst states for taxing salary and retirement income. ... Bloomberg completed a recent study that compares how states stacked up on various criteria. The study used Quicken’s TurboTax to calculate state income tax for varying levels of salary.
acid alkaline diet
Message Edited by NicoleD on 01-09-2010 12:18 AM
Hi Brian -
Thanks for bringing up this issue with the community. Does anybody have any relevant thoughts on business taxes that they could add to this discussion?
Nice map for personal income - but, keep in mind that some states that don't have personal income tax - still tax businesses. For example, Texas does not have income tax - but does tax businesses through their franchise tax. I also think that TN - does not tax income or does so at a very low rate - but does tax businesses. Also, if you are not located in the state of your business - you usually have to file as a foriegn company - and many states that don't tax income or businesses will tax these out of state, foriegn entities.
Also, there is more involved then just paying income tax. Example, again, Texas does not tax income - but has a very high sales tax (thus you earn your money but pay taxes when you spend it) as well as very high property taxes - if you own property you are effected and if you rent property your landlord is effected and will pass those on to you.
Want to lower all taxes we pay - work on getting rid of the corruption and waste (just my personal opinion).
Nice map for personal income - but, keep in mind that some states that don't have personal income tax - still tax businesses. For example, Texas does not have income tax - but does tax businesses through their franchise tax. I also think that TN - does not tax income or does so at a very low rate - but does tax businesses. Also, if you are not located in the state of your business - you usually have to file as a foriegn company - and many states that don't tax income or businesses will tax these out of state, foriegn entities. Also, there is more involved then just paying income tax. Example, again, Texas does not tax income - but has a very high sales tax (thus you earn your money but pay taxes when you spend it) as well as very high property taxes - if you own property you are effected and if you rent property your landlord is effected and will pass those on to you. Want to lower all taxes we pay - work on getting rid of the corruption and waste (just my personal opinion).
Where you domicile your business will probably not determine the amount of state income tax you pay. It will be based on where you operate your business.
Along with the state of Nevada, eight other states do not impose personal income taxes - Alaska, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. These states are closely followed by Illinois with a low personal income tax rate of 3%.
Nevada is also one of five states that do not impose corporate income tax - including South Dakota, Texas, Washington, and Wyoming. These states are closely followed by Ohio, Alabama, Colorado, and Michigan, all with tax rates of less than 5%, and Mississippi, South Carolina, and Utah have tax rates of 5%.
For more on this topic, see our recent articles on State Tax Requirements - Part 1 and Part 2.
I like the idea of not being taxed on my small s corp, so I guess the only way would be to actually move your business to one of those states.
I have heard of other companies incorporating in Nevada but not actually residing there. Sounds unethical to me. Maybe I can talk my wife into relocating.
h20ho | Window Shopper | 8/26/2012 - 3:31 pm
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