Taxes continue to remain one of the most complicated topics ever. Let’s be honest that there is nothing better than clearly understanding what you have to pay for and why especially when it comes to taxes.
It is a general rule of thumb that one of the most complicated taxes is sales tax. The main reason is that sales tax can make the price of a certain product higher, this is exactly why most business owners hate this tax. Therefore, we decided to concentrate solely on sales tax and bring to your attention top sales tax-friendly states that you can consider for launching your business. However, there are also different types of taxes that you should be aware of; you can visit our website where you can find lots of interesting blogs regarding taxes and not only.
So, if you intend to start your business in the United States and do not know which state to choose, we are here to help you.
This state has a rate of 2.9%, so most business owners can feel almost tax-free and set up their business without a doubt. Moreover, by running your business in this state, you are provided with a unique opportunity to be in four states at the same time. So, in the southwest of Colorado, you can be in New Mexico, Arizona, and Utah at the same time and still do not pay much for that.
Missouri is the next state with a relatively low sales tax rate; the sales tax rate in this state is just 4.225%. Now, imagine how great it would be to have a business in this state?
North Carolina provides its residences with sales taxes at a rate of 4.75%. Of course, it is not the best option for running a business, however, it’s still relatively low.
Alabama, New York, Hawaii, Wyoming
These four states have a relatively low sales tax rate of 4%. Additionally, the following states do not impose a 7% sales tax. So, if you intend to build a profitable business and do not overpay in taxes, then, you should definitely consider the following states as an option.
Oregon, Louisiana, Montana, Delaware, Alaska
Here is another list of states, which provide quite comfortable sales tax rates for setting up a business. For example, Louisiana has a 4.45% tax rate, and Delaware, Oregon, Montana, and Alaska with their 0.00% sales tax!
We have brought to your attention only a few states, in reality, there are more tax-friendly states where you can confidently set up your business. However, there is one thing that you should keep in mind: you should always contact professionals before launching a business in a certain state. The main reason is that even in states with a 0.00% sales tax rate, you can face sales taxes on certain categories of products. This is exactly why you need to know how the entire taxation system works in each state.
If you need professionals’ help regarding taxes, tax, or business-related questions, you can contact our team and we will gladly help you figure out which states suit you more for setting up your business. Moreover, we are open to provide you with all the necessary information that every taxpayer should be aware of in order to avoid overpaying taxes.