The Best & Worst States to Own A Franchise
Want to know what state is the most small business friendly? According to The Tax Foundation's recent report, states that are most friendly to business "levy low, flat rates on the broadest bases possible". So, if you take the major taxes -- such as individual income, business, sales, unemployment insurance, and estate taxes -- and mix them into the cauldron, here's what The Tax Foundation reported to U.S. News & World Report come out on top and bottom for being most friendly. Here's the tax friendliest five:- Wyoming (3.3 percent)
- South Dakota (3.5 percent)
- Alaska (7.0 percent)
- Florida (3.2 percent)
- Nevada ( 3.8 percent)
The population density per available franchise is also important. After all, it's hard being a franchise in the middle of Prudoe Bay, Alaska -- even if it does have a low tax rate. So, in my opinion, tax isn't everything. The more people to sell, the better.
Florida has a sizeable population, and along with Nevada it has one of the fastest growing populations in the union. Those factors, coupled with the lowest business tax rate in the union, sound like long-term franchise heaven to me.
And the worst states for small business?
Bottom 5
46. Vermont (3.5 percent)
47. Ohio (5.3 percent)48. Rhode Island (5.1 percent)
49. New Jersey (4.7 percent)
50. New York (4.7 percent)
