The Small Business & Entrepreneurship (SBE) Council ranks states on how friendly or unfriendly they are toward small businesses, taking into consideration taxes, regulatory costs, gas and diesel taxes, property rights, government spending, energy costs and healthcare policies. State tax laws and regulatory fees weigh heavily into the rankings.
"Low corporate and individual tax rates can make all the difference, especially for a small business that is just getting started," Deborah Sweeney, CEO of MyCorporation, an online document preparation service for small businesses, told The Street. "It may be difficult for a small business to get off the ground in the face of the difficult tax structures and the high cost of hiring employees."
The SBE council ranks the top 10 states as South Dakota, Nevada, Texas, Wyoming, South Carolina, Alabama, Ohio, Florida, Colorado and Virginia.
This year, the SBE has announced that it included state and local debt levels as well as dependence on federal funding to create a clearer picture of how small business friendly states are, according to The Street. If entrepreneurs are starting a company in a state that doesn't provide as much support or funding to small firms, they can turn to a merchant cash advance business to get the capital they need.
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