Regulations, Taxes A Higher Burden In Some Parts Of US Than Others
For entrepreneurs and small business owners, deciding where to locate their business, and whether or not to remain in that location once established, is one of the toughest decisions to consider. There are many personal reasons for choosing to own and operate a business in a particular place. However, practical considerations like the regulatory environment of state and local governments, the tax rates businesses face in certain areas, or the availability of a skilled work force, are important factors to weigh as well. Two recent surveys examined the best cities and states for starting and maintaining a business. CEO Magazine’s 12th annual ranking of the best and worst states for businesses, based on a survey of 513 US CEOs, found that, as in 2015, the top places for business are Texas, Florida, and North Carolina, while the bottom states are once again Illinois, New York, and California. The magazine explained that economic, political, and regulatory conditions between states vary widely, but that Florida stands out for its consistent improvements. The state “added 1 million private-sector jobs over the last 5 years, cut taxes 50 times and eliminated 4,200 regulations,” all progress that helps businesses thrive. In a separate survey, Wallet Hub examined the best places to start a business and found that of the 150 most-populated US cities, Sioux Falls, SD was the best, followed by Grand Rapids, MI, while Washington, DC was among the worst. Generally, the cities topping the list had the most favorable regulatory environments, while those at the bottom had a combination of high taxes, a poor regulatory environment, and a high cost of living for business owners and their employees.
What This Means For Small Businesses
Small business owners know how tough it can be to navigate the regulatory and tax landscape in their community. The NFIB’s latest Small Business Economic Trends report shows that small business owners continue to believe the regulatory burden and tax landscape are the biggest challenges they face in growing their businesses. Surveys like those from CEO Magazine and Wallet Hub can help owners facing tough choices about where to locate their businesses.
Additional Reading
Reuters, Investor’s Business Daily, and MarketWatch are among the outlets reporting on the latest NFIB small business optimism index.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
