Tax Tip: Best & Worse States To Own A Business… Ms. Bels Wednesday, October 17, 2012 The Receipt, Your Money and You Businesses, whether big or small, have been the hot topic during the recent presidential debates. With business owners, the number one concern is high tax rates. Well, CNN recently gave a breakdown of the best and worst states to own a business. Current and future business owners may need to take heed to this list just in case they wish to operate in a more feasible low tax state. Check out the current rankings (in no particular order): #1 – Wyoming: This state has no income tax and corporate tax. But, there is a sales tax rate. Luckily for businesses, the sales tax is suprisingly low at 4%. #2 – South Dakota: This state shares the same snapshot as Wyoming (no income or corporate taxes and a low sales tax of 4%). But, the property tax rate is 2. 86%. #3 – Nevada: The gambling state, known for raking in millions of travelers each year, brings in big money. It too has no income or corporate taxes and a low property tax rate of 3.53%. The unfortunate part is that sales tax is high at 6.85%. #48 – Vermont: Income taxes are high at 8.95% for income earners of $388,000 or higher. Corporate taxes are 8.5% and sales tax are fairly low at 6%. The good side is that the state of Vermont gives employers several exemptions on unemployment insurance payments. #49 – New Jersey: You may want to think twice about setting up shop in the state of New Jersey. All taxes are on the high end. Corporate tax is 9%. Sales tax is 7%. Income tax is 8.97% for small business incomes of $500,000 or above. #50 – New York: The big cheese is none other than the Big Apple. Listed as the worst state to do business in, income taxes are 8.82% for companies with $1,000,000 and over. Corporate taxes are a flat 7.1% across the board. Property taxes are 4.53%. In decent news though, the state of New York has a low sales tax of 4%. If you own a business and want to know more information other states, go to CNN.com.