If you are running a company in these areas, be careful because your state government has been highlighted by Fortune Magazine as having the worst tax and regulatory climate for small businesses. Others in the top 10 worst states included Massachusetts, Rhode Island, and New York.According to the same article, the best three states for small businesses are South Dakota, Nevada, and Wyoming.
What does this mean you should do? Should you move your business to South Dakota? Well, not necessarily. However, you may strongly consider moving to a state that is more business-friendly than the one you are in. For instance, Florida and Texas - which both are amongst the top 10 best states.
In 2006, I made the decision to move my company from California to Ohio - and I have seen a very significant difference. California was not a very business-friendly place at all. Ohio, although not in the top ten, has turned out to be a great place for my company.
Not only do I pay less business taxes now, but I also was able to find affordable office space (non-existent in California) and good employees willing to work for reasonable salaries (very sparse in California).
I guess it really comes down to how much your company means to you. Moving your company to a business-friendly state can mean the difference between you staying afloat or becoming another statistic.
Now, if you decide to stay in a state that does not cater to small businesses, it doesn't mean that you are doomed. Just fully understand what you're up against, and work hard to stay ahead of the game. At the same time though, blame no one but yourself if your business topples because you weren't willing to make the sacrifice of moving to a different state.
Here's the article link for your personal reference:
http://money.cnn.com/2007/11/16/smbusiness/SBE_states_lists.fsb/index.htm
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