Top 10 US States for Conducting Business You Did Not Know About

As we all know, the USA is a dynamic country in which legislative changes are not a rare occurrence. Changes in the tax sphere at the federal or state level can be observed approximately every year.

In anticipation of 2020, we want to introduce the top 10 states that are best suited for doing business regarding the tax system. Also in this article, you will find a brief description of the most important advantages of each state and select your top 5.

1. Wyoming

is a state in the western United States and is part of the group of so-called Highlands. The capital and largest city is Cheyenne. The official nickname is "State of Equality".

Corporate tax is 0%;

Personal income tax is 0%;

Sales tax is 4%.

2. South Dakota

is a state located in the Midwestern United States. South Dakota became a state on November 2, 1889 (simultaneously with North Dakota). The state capital is Pierre, the largest city is Sioux Falls.

Corporate tax is 0%;

Personal income tax is 0%;

Sales tax is 4.5%.

Since the United States has a three-level tax system, in cities such as Sioux Falls, Rapid City, Aberdeen, Brookings, and others the total sales tax rate can reach 6.5%.

3. Alaska

is the northernmost and largest in the US state, located in the northwest of North America. It has a maritime border with Russia in the Bering Strait.

Alaska's corporate tax is determined by the Alaskan Statute - §43.20.011, does not have a fixed rate and varies from company income. In the table below, you can view detailed taxation information in Alaska.

4. Florida

is a state in the southeastern United States; the capital is the city of Tallahassee.

Corporate tax is 5.5%, it should also be noted that the first $ 50K is exempt from tax.

Personal income tax is 0%;

Sales tax is 6%.

5. Montana

 is a state in the northwestern United States, the 41st state to join the union. In the north, it borders with Canada. The capital is Helena, the largest city is Billings.

Corporate tax is 6.9%;

Personal income tax is minimum 1%;

Sales tax is 0%.

6. New Hampshire

is a small state in the New England region of the northeastern United States. The state capital is Concord, the largest city is Manchester.

The tax system in New Hampshire is quite peculiar. All companies registered in New Hampshire are subject to two rather unusual state taxes: corporate income tax and business tax.

Corporate income tax is 7.9%.

This tax is levied on income derived from activities within the state. This tax must be paid by companies with a gross income of more than $ 50,000.

A business tax is a tax which the Department of State Revenue Management defines as paid or accrued compensation (for example, salaries, interest, or dividends). Currently, the rate is 0.675%, but it may vary depending on the year.

Personal income tax is minimum 1%.

Sales tax is 0%.

7. Nevada

is a state in the western United States. The state capital is Carson City, the largest city is Las Vegas.

Corporate tax is 0%;

Personal income tax is 0%;

Sales tax is 4.6%.

Nevada also has two additional taxes - MBT and Commerce Tax.

MTB (Modified Business Tax) is applied to those companies that have employees, the tax amount is 1,475% and is a quarterly payroll tax.

The Commerce Tax is a tax that companies with a gross income of more than $ 4 million must pay. This tax varies by industry. If you need more detailed information, we will be glad to provide it to you.

Since the United States has a three-level tax system, in cities such as Clark, Washu, Lyon, Elko, Douglas, and others the total sales tax rate can reach 8.265%.

8. Oregon

 is a state in the northwestern United States, one of the so-called Pacific states. The capital is Salem, the largest city is Portland.

Corporate tax is 6.6% for $0 - $1 million income or 7.6% for more than $1 million;

Personal income tax is 9.9%;

Sales tax is 0%.

It should be noted that with such a high rate in Oregon, there is the possibility of reducing this percentage.

9. Utah

 is a U.S. state in the Mountain States group located in the Rocky Mountains region. It borders in the northeast with the state of Wyoming, in the east with Colorado, in the south with Arizona, in the west with Nevada and in the north with Idaho. The capital and largest city is Salt Lake City.

Corporate tax is 5% with a minimum tax of $ 100.

Personal income tax is 0%.

Sales tax is 4.7%.

10. Indiana

 is a state in the northeastern United States, one of the so-called states of the Northeast Center. The capital and largest city is Indianapolis.

Corporate tax is 5.5%;

Indiana is a state that is developing and expanding its business field, so corporate tax will be reduced to 4.9% by 2021.

Personal income tax is 3.23%.

Sales tax is 7%.

Indiana sales tax is fixed and does not depend on the city or county.

Law & Trust specialists can provide legal advice on taxation, company registration, and business in the United States, thereby minimizing labor and time costs for studying US law. For detailed information, please contact us directly.