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Least Tax-Friendly States for Businesses
Take a look at which states you should avoid when starting a small businesses.

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The Tax Foundation’s 2011 version of the State Business Tax Climate index lists which states are the least appealing in attracting new business based on its tax structure. The institute measures each based on its corporate tax index, individual income index, sales tax index, unemployment tax index and property tax index.

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New York

New York takes home the honors of being the least business-friendly state in the nation by having the third worst individual-income tax, ninth worst sales tax and the worst property tax rankings.

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California

With both its individual-income tax and sales-tax index rankings near the bottom of the list, California is anything but golden for businesses.  

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New Jersey

New Jersey broke its three-year streak of having the worst business tax climate in the country, improving to 48th.

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Connecticut

The creation of the “millionaire’s bracket” hurt the state’s state-income tax ranking pushing it down nine spots from last year.

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Ohio

Despite having a decent score in the unemployment-insurance index ranking, the Buckeye State finished near the bottom of almost every other index.

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Iowa

Iowa’s weak scores with the corporate-tax index and individual income-tax index makes small business owners shy away from the Hawkeye State.

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Maryland

Maryland’s mixed bag of scores across the indexes makes it unattractive for business owners to open shop.

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Minnesota

The Land of 10,000 lakes scored poorly on every index accept the property-tax index.

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Rhode Island

Rhode Island improved to 42nd from 44th when it comes to business-friendly states, but its last-place ranking of its unemployment-tax system and third-worst property tax system still makes it tough to do business.

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North Carolina

Despite have the sixth best unemployment tax-index ranking, the Tar-Heel State rounds out the list of least business-friendly states thanks to its poor score in the sales-tax index.

Least Tax-Friendly States for Businesses

Take a look at which states you should avoid when starting a small businesses.

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