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Which States Are The Most Friendly To Businesses?

Never mind the weather. It’s the business climate in the state where you live and work that can have a significant impact on your company’s fortunes.

The Tax Foundation, an independent taxpayer advocacy group, recently issued its 2010 State Business Tax Climate Index (SBTCI). The seventh edition of this annual study enables legislators, businesses, and individuals to compare their state tax systems to the systems in other states. Policymakers may use the SBTCI to pinpoint changes for improving the relative standing of their home states.

The SBTCI ranks states based on the following five taxes: corporate, individual income, sales, unemployment insurance, and property. Scores are based on the relative importance or impact of the tax to the business community.

Wyoming, which had the highest rating in 2009, falls to the second spot in 2010, replaced by South Dakota. California is ranked 48th, New York is 49th, and New Jersey brings up the rear as the state with the worst business climate for the second year in a row.

Here are the top 10 states for business, according to the SBTCI.

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

To see the complete rankings of the SBTCI, visit www.taxfoundation.org/taxdata/topic/90.html.


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This article was written by a professional financial journalist for AFW Wealth Advisors and is not intended as legal or investment advice.

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