Texas has been declared by Capital on Tap as the second-best state in the U.S. for starting a small business; a fact that is bound to benefit the Dallas business community.
Capital on Tap specializes in providing credit card service to businesses, and created its list using data collected from the U.S. Bureau of Labor Statistics. Among the factors looked at were corporate tax rates, new firm survival rates, and the number of entrepreneurs per state.
Reports with rankings such as this one will almost certainly find their way into information packets ordered from Print shops by Texas cities.
The No. 1 Best State to Start a Business, according to Capital, on Tap is Florida. A characteristic common to both Florida and Texas is they are each possess a favorable tax framework for small ventures. Neither state imposes any income tax – a claim only three other U.S. states can make. Moreover, in Texas, businesses with revenues less than $1.08m do not have to pay any franchise tax.
The state’s high ranking should come as no surprise. In January, Texas garnered the No. 3 slot in Wallet Hub’s 2023 Best & Worst States to Start a Business.
Moreover, in Texas, there are no corporate taxes, whereas the Sunshine State levies a corporate tax of 5.5% against Florida small businesses.
Rounding out the top five on the list were Idaho in the No. 3 slot, followed by Nevada and North Carolina in the 4th and 5th spots respectively.
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