Starting or growing a business is personal. Maybe you’ve poured your savings into your idea, spent late nights tweaking your product, or made tough calls to keep things running. Every decision feels high-stakes, and where you choose to build your business can have a major impact on your future. One of the most important considerations is tax benefits.
Just like typical business expenses, such as utilities and payroll, your tax liability impacts business profitability and growth. Benefits can help you retain more earnings, improving your bottom line.
However, with 50 states to consider, each with varying tax codes, how do you know which one benefits you the most?
Here, we compare tax advantages across states to promote better and well-informed financial planning, relocation, and business decisions.
States with no income tax can increase individuals’ take-home pay and businesses’ profit margins, supporting growth efforts. However, there’s a misconception that such states are automatically the best places to set up.
While the income tax benefit is certainly no small benefit, business owners should proactively evaluate state tax laws rather than just assuming no-income-tax states are best.
There are other benefits to consider beyond the zero-income-tax benefit. For example, you may want to look at states that offer tax credits and breaks for your business type to promote growth or those with low property taxes to reduce housing costs and potentially attract a larger workforce.
Further, it’s worth noting that some no-income-tax states may impose other types of taxes, such as sales tax, and charge high business fees, offsetting any savings made from their zero-income-tax benefit.
Moreover, other states may have income taxes but offer other tax incentives that far outweigh the benefits of setting up shop in a no-income-tax state. This makes it important to look beyond apparent tax benefits when weighing your options.
Again, while no-income-tax states are an attractive option, it’s important to look at overall tax benefits, including deductions, credits, and cost-of-living factors, to make a well-informed decision that benefits you. Here’s an overview of the best states by income tax savings and other benefits:
There are currently nine states with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. These states may be a great option for individuals looking to increase their take-home pay.
However, zero-income-tax states don’t always mean better overall savings. So, consider a state’s overall tax policy before choosing it.
Some states with zero income tax compensate in other ways, such as high property or sales taxes. Take Alaska and Florida, for example. While you don’t pay income taxes, you’ll incur a 1.04% and 0.71% property tax rate, which is higher than most states’ rates.
Further, Alaska and Florida rank 35 and 39 out of 50 in terms of affordability. Similarly, while Washington is a no-income-tax state, individuals incur a 7% long-term capital gains tax on assets sold for profits of $270,000 or more.
On the other hand, some states may impose income tax but offer other incentives. Pennsylvania, for instance, has a flat income tax but runs grant programs like Schools-to-Work to help individuals meet their apprenticeship goals. Plus, the Pennsylvania Office of Vocational Rehabilitation (OVR) provides tax credits to support apprentices with disabilities.
Property tax exemptions and homestead deductions can reduce states’ costs of living, attracting more people. Some of the states with the lowest property taxes include:
Retirement tax benefits impact how much savings and income individuals keep during retirement, making them worthwhile considerations. Some of the best states in terms of retirement benefits include Alaska, Nevada, Florida, Mississippi, Wyoming, Georgia, and South Dakota — they don’t impose a state income tax, meaning individuals’ Social Security retirement benefits, pension income, and income from IRAs and 401(k) accounts go untaxed.
Other retirement-friendly states include:
Some of the best states for business owners, entrepreneurs, and startups looking for tax-friendly locations include:
Low or no corporate taxes benefit both small businesses and larger corporations. Small businesses, which often operate on tight margins, typically have extra cash for reinvestment into their operations, facilitating business growth. Corporations may also register higher profits, allowing them to pay higher dividends to their stakeholders.
States with no corporate income tax are Florida, Texas, South Dakota, Washington, Wyoming, and Ohio. However, Nevada, Ohio, Texas, and Washington have gross receipts taxes, which are typically imposed on companies’ total sales.
States with corporate tax rates of or below 5% include Colorado, Arizona, Arkansas, South Carolina, Missouri, and Kentucky.
There’s more to creating a business-friendly environment than imposing zero or low corporate income tax. It’s also important to offer deductions, credits, and business-friendly tax structures. Some of the states that recognize this include:
A low sales tax is attractive to businesses because it reduces the cost of goods, allowing them to price their products more competitively. This helps companies stand out from competitors, especially among price-sensitive customers, and saves customers money — a win-win for both.
Currently, only five states have no sales tax: Alaska, Oregon, New Hampshire, Delaware, and Montana.
Some, such as Hawaii, Wyoming, Wisconsin, Maine, and Virginia, levy a low sales tax, making them worth considering as well.
As you’ve probably already realized, almost every state offers unique tax benefits, from income tax savings to business incentives. With that said, some offer more notable benefits than others. Here’s a look at some of the most appealing states for enterprises and the kind of tax benefits they offer:
With a corporate tax rate of 8.84% (for C corporations), a franchise tax of 1.5% (for S corporations), and a flat dollar tax amount for limited liability partnerships, it’s easy to look past California when searching for tax-friendly states.
However, despite its high rates, the Golden State offers significant tax incentives that can lower the cost of doing business and promote growth. Some of these include:
Colorado has one of the most affordable property tax rates (0.49%). This can lower the cost of living in the state and attract talent, making it easy for businesses to find qualified employees. Beyond its low property tax rate, the state offers tax benefits such as:
Indiana has a low flat income tax rate (3.15%) and zero gross receipts and inventory tax. It also has business-friendly incentives such as:
Michigan offers competitive income tax rates and tax incentives like:
Despite imposing individual income and corporate income taxes, Minnesota is a great state for businesses looking to set up shop and grow. It offers some of the most generous tax credits in the country, such as:
With zero corporate income tax, franchise tax, and personal income tax, Nevada is one of the most attractive locations not only for businesses but also for individual taxpayers, particularly retirees and high earners.
However, that’s not all the state offers. It also provides the following tax credits and abatements:
Despite its income taxes falling on the higher end, New Jersey is one of the best states for businesses because it offers generous property tax relief programs and retirement income exclusions. Here are some of its business-friendly tax policies:
North Carolina has a low flat income tax rate, positioning it as one of the best options for businesses and individuals looking to raise their take-home earnings. It also offers additional incentives for entrepreneurs and small businesses, such as:
Ohio is a highly attractive option for small business owners, thanks to its zero-corporate-income-tax policy. It also offers the following credits and incentives:
Pennsylvania offers a flat income tax of 3.07%, one of the lowest in the U.S. It also has a tax-exempt policy for payments from retirement accounts, Social Security, and pension accounts for people aged 60 or older. This makes the state attractive to individuals, which could streamline the hiring process.
That’s not all. The Commonwealth of Pennsylvania offers tax credits for:
Tennessee is a popular choice for both individuals and businesses because it:
Texas is an ideal location for entrepreneurs, high-income earners, and retirees because it has no income tax, no corporate tax, and no tax on Social Security retirement benefits. It also offers tax incentives such as:
Virginia is one of the most attractive states for individuals looking to relocate from high-cost-of-living areas, thanks to its relatively low cost of living. It’s also appealing to businesses because it offers strong tax credits for:
All the states discussed above offer their unique appeal when it comes to tax benefits. To choose the right one, consider your situation and priorities. What is your current individual income or business income level? Do you have a property ownership or retirement goal? What are your business goals? Compare your answers to the states’ offerings to find the best fit for you.
Rather than look at one factor when picking a state, such as zero corporate income tax, weigh what each of your options has to offer to determine your overall net savings. Then, pick the most suitable location based on your findings.
To determine your net savings, add up your income tax benefit, property tax benefit, sales or franchise tax benefit, and any cost of living savings:
Income tax + property tax + sales tax + cost of living = net savings
Depending on your situation, you can also include clean energy tax credits, R&D incentives, employee training credits, and any pertinent exemptions or refunds you stand to gain.
Relocating purely for tax savings may not always be the best financial decision. You may relocate because of tax incentives only to find that other costs in your chosen state are exorbitantly high.
If you’re planning to relocate, consider not only tax savings but also healthcare costs, market presence, the job market, and the quality of life in the state. Only settle on a location if it has great promise and its costs are manageable.
Before uprooting your business, know that there’s another way to expand your operations: virtual addresses.
A virtual address solution like Stable’s is a simple way for your business to establish a presence in another state without the extreme expense and overhead involved in finding, staffing, and operating a physical location.
With Stable, your business can receive mail and packages on your behalf at a secure location. When your mail comes, it’s uploaded to your online Stable dashboard, where you can manage them remotely.
Using a virtual address solution also affords many of the same benefits as a physical location for business purposes, making them a great alternative:
The key to finding the best state tax benefits is assessing your unique needs and goals. If you want to maximize your retirement income, choose a state that doesn’t impose tax on retirement payments. And, if you want to relocate your HQ, choose one with tax exemptions for doing so.
Stable can help you comply with your chosen state’s business registration and compliance requirements by providing a virtual address for your taxes and correspondence. When you partner with us, we’ll not only help you set up shop in your new state by giving you a real street address but also help you stay compliant by receiving and sending any pertinent tax correspondence.
Sign up for Stable today to get a virtual mailbox for tax compliance!
Starting or growing a business is personal. Maybe you’ve poured your savings into your idea, spent late nights tweaking your product, or made tough calls to keep things running. Every decision feels high-stakes, and where you choose to build your business can have a major impact on your future. One of the most important considerations is tax benefits.
Just like typical business expenses, such as utilities and payroll, your tax liability impacts business profitability and growth. Benefits can help you retain more earnings, improving your bottom line.
However, with 50 states to consider, each with varying tax codes, how do you know which one benefits you the most?
Here, we compare tax advantages across states to promote better and well-informed financial planning, relocation, and business decisions.
States with no income tax can increase individuals’ take-home pay and businesses’ profit margins, supporting growth efforts. However, there’s a misconception that such states are automatically the best places to set up.
While the income tax benefit is certainly no small benefit, business owners should proactively evaluate state tax laws rather than just assuming no-income-tax states are best.
There are other benefits to consider beyond the zero-income-tax benefit. For example, you may want to look at states that offer tax credits and breaks for your business type to promote growth or those with low property taxes to reduce housing costs and potentially attract a larger workforce.
Further, it’s worth noting that some no-income-tax states may impose other types of taxes, such as sales tax, and charge high business fees, offsetting any savings made from their zero-income-tax benefit.
Moreover, other states may have income taxes but offer other tax incentives that far outweigh the benefits of setting up shop in a no-income-tax state. This makes it important to look beyond apparent tax benefits when weighing your options.
Again, while no-income-tax states are an attractive option, it’s important to look at overall tax benefits, including deductions, credits, and cost-of-living factors, to make a well-informed decision that benefits you. Here’s an overview of the best states by income tax savings and other benefits:
There are currently nine states with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. These states may be a great option for individuals looking to increase their take-home pay.
However, zero-income-tax states don’t always mean better overall savings. So, consider a state’s overall tax policy before choosing it.
Some states with zero income tax compensate in other ways, such as high property or sales taxes. Take Alaska and Florida, for example. While you don’t pay income taxes, you’ll incur a 1.04% and 0.71% property tax rate, which is higher than most states’ rates.
Further, Alaska and Florida rank 35 and 39 out of 50 in terms of affordability. Similarly, while Washington is a no-income-tax state, individuals incur a 7% long-term capital gains tax on assets sold for profits of $270,000 or more.
On the other hand, some states may impose income tax but offer other incentives. Pennsylvania, for instance, has a flat income tax but runs grant programs like Schools-to-Work to help individuals meet their apprenticeship goals. Plus, the Pennsylvania Office of Vocational Rehabilitation (OVR) provides tax credits to support apprentices with disabilities.
Property tax exemptions and homestead deductions can reduce states’ costs of living, attracting more people. Some of the states with the lowest property taxes include:
Retirement tax benefits impact how much savings and income individuals keep during retirement, making them worthwhile considerations. Some of the best states in terms of retirement benefits include Alaska, Nevada, Florida, Mississippi, Wyoming, Georgia, and South Dakota — they don’t impose a state income tax, meaning individuals’ Social Security retirement benefits, pension income, and income from IRAs and 401(k) accounts go untaxed.
Other retirement-friendly states include:
Some of the best states for business owners, entrepreneurs, and startups looking for tax-friendly locations include:
Low or no corporate taxes benefit both small businesses and larger corporations. Small businesses, which often operate on tight margins, typically have extra cash for reinvestment into their operations, facilitating business growth. Corporations may also register higher profits, allowing them to pay higher dividends to their stakeholders.
States with no corporate income tax are Florida, Texas, South Dakota, Washington, Wyoming, and Ohio. However, Nevada, Ohio, Texas, and Washington have gross receipts taxes, which are typically imposed on companies’ total sales.
States with corporate tax rates of or below 5% include Colorado, Arizona, Arkansas, South Carolina, Missouri, and Kentucky.
There’s more to creating a business-friendly environment than imposing zero or low corporate income tax. It’s also important to offer deductions, credits, and business-friendly tax structures. Some of the states that recognize this include:
A low sales tax is attractive to businesses because it reduces the cost of goods, allowing them to price their products more competitively. This helps companies stand out from competitors, especially among price-sensitive customers, and saves customers money — a win-win for both.
Currently, only five states have no sales tax: Alaska, Oregon, New Hampshire, Delaware, and Montana.
Some, such as Hawaii, Wyoming, Wisconsin, Maine, and Virginia, levy a low sales tax, making them worth considering as well.
As you’ve probably already realized, almost every state offers unique tax benefits, from income tax savings to business incentives. With that said, some offer more notable benefits than others. Here’s a look at some of the most appealing states for enterprises and the kind of tax benefits they offer:
With a corporate tax rate of 8.84% (for C corporations), a franchise tax of 1.5% (for S corporations), and a flat dollar tax amount for limited liability partnerships, it’s easy to look past California when searching for tax-friendly states.
However, despite its high rates, the Golden State offers significant tax incentives that can lower the cost of doing business and promote growth. Some of these include:
Colorado has one of the most affordable property tax rates (0.49%). This can lower the cost of living in the state and attract talent, making it easy for businesses to find qualified employees. Beyond its low property tax rate, the state offers tax benefits such as:
Indiana has a low flat income tax rate (3.15%) and zero gross receipts and inventory tax. It also has business-friendly incentives such as:
Michigan offers competitive income tax rates and tax incentives like:
Despite imposing individual income and corporate income taxes, Minnesota is a great state for businesses looking to set up shop and grow. It offers some of the most generous tax credits in the country, such as:
With zero corporate income tax, franchise tax, and personal income tax, Nevada is one of the most attractive locations not only for businesses but also for individual taxpayers, particularly retirees and high earners.
However, that’s not all the state offers. It also provides the following tax credits and abatements:
Despite its income taxes falling on the higher end, New Jersey is one of the best states for businesses because it offers generous property tax relief programs and retirement income exclusions. Here are some of its business-friendly tax policies:
North Carolina has a low flat income tax rate, positioning it as one of the best options for businesses and individuals looking to raise their take-home earnings. It also offers additional incentives for entrepreneurs and small businesses, such as:
Ohio is a highly attractive option for small business owners, thanks to its zero-corporate-income-tax policy. It also offers the following credits and incentives:
Pennsylvania offers a flat income tax of 3.07%, one of the lowest in the U.S. It also has a tax-exempt policy for payments from retirement accounts, Social Security, and pension accounts for people aged 60 or older. This makes the state attractive to individuals, which could streamline the hiring process.
That’s not all. The Commonwealth of Pennsylvania offers tax credits for:
Tennessee is a popular choice for both individuals and businesses because it:
Texas is an ideal location for entrepreneurs, high-income earners, and retirees because it has no income tax, no corporate tax, and no tax on Social Security retirement benefits. It also offers tax incentives such as:
Virginia is one of the most attractive states for individuals looking to relocate from high-cost-of-living areas, thanks to its relatively low cost of living. It’s also appealing to businesses because it offers strong tax credits for:
All the states discussed above offer their unique appeal when it comes to tax benefits. To choose the right one, consider your situation and priorities. What is your current individual income or business income level? Do you have a property ownership or retirement goal? What are your business goals? Compare your answers to the states’ offerings to find the best fit for you.
Rather than look at one factor when picking a state, such as zero corporate income tax, weigh what each of your options has to offer to determine your overall net savings. Then, pick the most suitable location based on your findings.
To determine your net savings, add up your income tax benefit, property tax benefit, sales or franchise tax benefit, and any cost of living savings:
Income tax + property tax + sales tax + cost of living = net savings
Depending on your situation, you can also include clean energy tax credits, R&D incentives, employee training credits, and any pertinent exemptions or refunds you stand to gain.
Relocating purely for tax savings may not always be the best financial decision. You may relocate because of tax incentives only to find that other costs in your chosen state are exorbitantly high.
If you’re planning to relocate, consider not only tax savings but also healthcare costs, market presence, the job market, and the quality of life in the state. Only settle on a location if it has great promise and its costs are manageable.
Before uprooting your business, know that there’s another way to expand your operations: virtual addresses.
A virtual address solution like Stable’s is a simple way for your business to establish a presence in another state without the extreme expense and overhead involved in finding, staffing, and operating a physical location.
With Stable, your business can receive mail and packages on your behalf at a secure location. When your mail comes, it’s uploaded to your online Stable dashboard, where you can manage them remotely.
Using a virtual address solution also affords many of the same benefits as a physical location for business purposes, making them a great alternative:
The key to finding the best state tax benefits is assessing your unique needs and goals. If you want to maximize your retirement income, choose a state that doesn’t impose tax on retirement payments. And, if you want to relocate your HQ, choose one with tax exemptions for doing so.
Stable can help you comply with your chosen state’s business registration and compliance requirements by providing a virtual address for your taxes and correspondence. When you partner with us, we’ll not only help you set up shop in your new state by giving you a real street address but also help you stay compliant by receiving and sending any pertinent tax correspondence.
Sign up for Stable today to get a virtual mailbox for tax compliance!
Starting or growing a business is personal. Maybe you’ve poured your savings into your idea, spent late nights tweaking your product, or made tough calls to keep things running. Every decision feels high-stakes, and where you choose to build your business can have a major impact on your future. One of the most important considerations is tax benefits.
Just like typical business expenses, such as utilities and payroll, your tax liability impacts business profitability and growth. Benefits can help you retain more earnings, improving your bottom line.
However, with 50 states to consider, each with varying tax codes, how do you know which one benefits you the most?
Here, we compare tax advantages across states to promote better and well-informed financial planning, relocation, and business decisions.
States with no income tax can increase individuals’ take-home pay and businesses’ profit margins, supporting growth efforts. However, there’s a misconception that such states are automatically the best places to set up.
While the income tax benefit is certainly no small benefit, business owners should proactively evaluate state tax laws rather than just assuming no-income-tax states are best.
There are other benefits to consider beyond the zero-income-tax benefit. For example, you may want to look at states that offer tax credits and breaks for your business type to promote growth or those with low property taxes to reduce housing costs and potentially attract a larger workforce.
Further, it’s worth noting that some no-income-tax states may impose other types of taxes, such as sales tax, and charge high business fees, offsetting any savings made from their zero-income-tax benefit.
Moreover, other states may have income taxes but offer other tax incentives that far outweigh the benefits of setting up shop in a no-income-tax state. This makes it important to look beyond apparent tax benefits when weighing your options.
Again, while no-income-tax states are an attractive option, it’s important to look at overall tax benefits, including deductions, credits, and cost-of-living factors, to make a well-informed decision that benefits you. Here’s an overview of the best states by income tax savings and other benefits:
There are currently nine states with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. These states may be a great option for individuals looking to increase their take-home pay.
However, zero-income-tax states don’t always mean better overall savings. So, consider a state’s overall tax policy before choosing it.
Some states with zero income tax compensate in other ways, such as high property or sales taxes. Take Alaska and Florida, for example. While you don’t pay income taxes, you’ll incur a 1.04% and 0.71% property tax rate, which is higher than most states’ rates.
Further, Alaska and Florida rank 35 and 39 out of 50 in terms of affordability. Similarly, while Washington is a no-income-tax state, individuals incur a 7% long-term capital gains tax on assets sold for profits of $270,000 or more.
On the other hand, some states may impose income tax but offer other incentives. Pennsylvania, for instance, has a flat income tax but runs grant programs like Schools-to-Work to help individuals meet their apprenticeship goals. Plus, the Pennsylvania Office of Vocational Rehabilitation (OVR) provides tax credits to support apprentices with disabilities.
Property tax exemptions and homestead deductions can reduce states’ costs of living, attracting more people. Some of the states with the lowest property taxes include:
Retirement tax benefits impact how much savings and income individuals keep during retirement, making them worthwhile considerations. Some of the best states in terms of retirement benefits include Alaska, Nevada, Florida, Mississippi, Wyoming, Georgia, and South Dakota — they don’t impose a state income tax, meaning individuals’ Social Security retirement benefits, pension income, and income from IRAs and 401(k) accounts go untaxed.
Other retirement-friendly states include:
Some of the best states for business owners, entrepreneurs, and startups looking for tax-friendly locations include:
Low or no corporate taxes benefit both small businesses and larger corporations. Small businesses, which often operate on tight margins, typically have extra cash for reinvestment into their operations, facilitating business growth. Corporations may also register higher profits, allowing them to pay higher dividends to their stakeholders.
States with no corporate income tax are Florida, Texas, South Dakota, Washington, Wyoming, and Ohio. However, Nevada, Ohio, Texas, and Washington have gross receipts taxes, which are typically imposed on companies’ total sales.
States with corporate tax rates of or below 5% include Colorado, Arizona, Arkansas, South Carolina, Missouri, and Kentucky.
There’s more to creating a business-friendly environment than imposing zero or low corporate income tax. It’s also important to offer deductions, credits, and business-friendly tax structures. Some of the states that recognize this include:
A low sales tax is attractive to businesses because it reduces the cost of goods, allowing them to price their products more competitively. This helps companies stand out from competitors, especially among price-sensitive customers, and saves customers money — a win-win for both.
Currently, only five states have no sales tax: Alaska, Oregon, New Hampshire, Delaware, and Montana.
Some, such as Hawaii, Wyoming, Wisconsin, Maine, and Virginia, levy a low sales tax, making them worth considering as well.
As you’ve probably already realized, almost every state offers unique tax benefits, from income tax savings to business incentives. With that said, some offer more notable benefits than others. Here’s a look at some of the most appealing states for enterprises and the kind of tax benefits they offer:
With a corporate tax rate of 8.84% (for C corporations), a franchise tax of 1.5% (for S corporations), and a flat dollar tax amount for limited liability partnerships, it’s easy to look past California when searching for tax-friendly states.
However, despite its high rates, the Golden State offers significant tax incentives that can lower the cost of doing business and promote growth. Some of these include:
Colorado has one of the most affordable property tax rates (0.49%). This can lower the cost of living in the state and attract talent, making it easy for businesses to find qualified employees. Beyond its low property tax rate, the state offers tax benefits such as:
Indiana has a low flat income tax rate (3.15%) and zero gross receipts and inventory tax. It also has business-friendly incentives such as:
Michigan offers competitive income tax rates and tax incentives like:
Despite imposing individual income and corporate income taxes, Minnesota is a great state for businesses looking to set up shop and grow. It offers some of the most generous tax credits in the country, such as:
With zero corporate income tax, franchise tax, and personal income tax, Nevada is one of the most attractive locations not only for businesses but also for individual taxpayers, particularly retirees and high earners.
However, that’s not all the state offers. It also provides the following tax credits and abatements:
Despite its income taxes falling on the higher end, New Jersey is one of the best states for businesses because it offers generous property tax relief programs and retirement income exclusions. Here are some of its business-friendly tax policies:
North Carolina has a low flat income tax rate, positioning it as one of the best options for businesses and individuals looking to raise their take-home earnings. It also offers additional incentives for entrepreneurs and small businesses, such as:
Ohio is a highly attractive option for small business owners, thanks to its zero-corporate-income-tax policy. It also offers the following credits and incentives:
Pennsylvania offers a flat income tax of 3.07%, one of the lowest in the U.S. It also has a tax-exempt policy for payments from retirement accounts, Social Security, and pension accounts for people aged 60 or older. This makes the state attractive to individuals, which could streamline the hiring process.
That’s not all. The Commonwealth of Pennsylvania offers tax credits for:
Tennessee is a popular choice for both individuals and businesses because it:
Texas is an ideal location for entrepreneurs, high-income earners, and retirees because it has no income tax, no corporate tax, and no tax on Social Security retirement benefits. It also offers tax incentives such as:
Virginia is one of the most attractive states for individuals looking to relocate from high-cost-of-living areas, thanks to its relatively low cost of living. It’s also appealing to businesses because it offers strong tax credits for:
All the states discussed above offer their unique appeal when it comes to tax benefits. To choose the right one, consider your situation and priorities. What is your current individual income or business income level? Do you have a property ownership or retirement goal? What are your business goals? Compare your answers to the states’ offerings to find the best fit for you.
Rather than look at one factor when picking a state, such as zero corporate income tax, weigh what each of your options has to offer to determine your overall net savings. Then, pick the most suitable location based on your findings.
To determine your net savings, add up your income tax benefit, property tax benefit, sales or franchise tax benefit, and any cost of living savings:
Income tax + property tax + sales tax + cost of living = net savings
Depending on your situation, you can also include clean energy tax credits, R&D incentives, employee training credits, and any pertinent exemptions or refunds you stand to gain.
Relocating purely for tax savings may not always be the best financial decision. You may relocate because of tax incentives only to find that other costs in your chosen state are exorbitantly high.
If you’re planning to relocate, consider not only tax savings but also healthcare costs, market presence, the job market, and the quality of life in the state. Only settle on a location if it has great promise and its costs are manageable.
Before uprooting your business, know that there’s another way to expand your operations: virtual addresses.
A virtual address solution like Stable’s is a simple way for your business to establish a presence in another state without the extreme expense and overhead involved in finding, staffing, and operating a physical location.
With Stable, your business can receive mail and packages on your behalf at a secure location. When your mail comes, it’s uploaded to your online Stable dashboard, where you can manage them remotely.
Using a virtual address solution also affords many of the same benefits as a physical location for business purposes, making them a great alternative:
The key to finding the best state tax benefits is assessing your unique needs and goals. If you want to maximize your retirement income, choose a state that doesn’t impose tax on retirement payments. And, if you want to relocate your HQ, choose one with tax exemptions for doing so.
Stable can help you comply with your chosen state’s business registration and compliance requirements by providing a virtual address for your taxes and correspondence. When you partner with us, we’ll not only help you set up shop in your new state by giving you a real street address but also help you stay compliant by receiving and sending any pertinent tax correspondence.
Sign up for Stable today to get a virtual mailbox for tax compliance!
