States Are Fueling Startups Through Business Incentives
Are you wanting to start a business? What are you waiting for? Creating an LLC has never been easier and depending on the state you live in, there are even business incentives in place for you to get things in motion. Check the list below to see if your state made the list for some of the top business incentives being offered.
Note: A small sample of the states are listed below. Searching for your specific state’s business incentives will need to be done on your part to get all the particulars and information.
Why Do States Provide Business Incentives?
At the end of the day, businesses create jobs, tax dollars and money for the state. It only makes sense why states would want to entice people to live the entrepreneur’s dream and build a highly successful business. That being said, depending on the types of incentives states provide, it could entice business owners from out of state to relocate.
The reality of running a business is that there are a lot of expenses that come along with it. This deters many people from starting a business in the first place. Incentives help ease the blow of putting up a significant amount of money to start your dream.
Take Advantage of Your State’s Incentives
While the examples below are only from a few states, all states have business incentives. Each year some are added while some may go away.
What you will find below is an example of one specific program the state offers. There are anywhere from 12 to 80 different business incentives out there for a given state. At the time of writing this, Oklahoma has the most business incentives, while Nevada has the least.
Use the resources listed above to see which business incentives you may qualify for and reach out to the representative or apply online if given the option. These incentives are great to take advantage of and can help keep money in your pocket that can be invested into the growth of your business.
Would you like to start a manufacturing facility in Oklahoma? Those who do can take advantage of the Manufacturing Sales Tax Exemption. What this provides is an exemption on the purchase of equipment, manufacturing machinery and a few other expenses that are needed to start and operate a successful manufacturing facility.
If you’re looking to start a business in Philadelphia, there are some advantageous business incentives on the table for you. The Jump Start Philly exemption is available for the first two years you are in business, allowing you to be exempt from the Business Income and Receipts Tax.
If you plan on bringing on employees, you could also receive credits of up to $25,000 per job you created for your business. Also, depending on the type of business you start, you may be exempt from paying for certain licenses and registrations.
Depending on the type of business you start, Georgia has income tax credits that you may qualify for if you hire minority businesses as a contractor or subcontractor. Their goal is to increase the number of minority jobs/workers in the state.
Millions of dollars are given away each year to those who are in life sciences research, manufacturing, development or commercialization through the Life Sciences Job Creation Tax Incentive Program.
You need to first get qualified through the Massachusetts Life Sciences Center and show exactly what you’d plan to do with the money you’d be given.
How does a corporate tax rate of 0% sound? It’s true. If you are a qualified New York state manufacturer, enjoy all the business incentives thrown your way.
Additionally, if you are heavy into research and development and invest in such facilities, you can qualify for a 9% corporate tax credit.
If you are a startup business in Oregon and provide dependent care to your staff, you can get a Dependent Care Tax Credit. This can provide you up to $2,500 per employee in credits, creating a win-win for both you and your employees.
If you are considering starting a business in Detroit, depending on the location, you can get a 39% tax credit from the New Markets Tax Credit.
To qualify, you need to start your business in one of the underserved areas of the city. The purpose of the credit is to bring life to Detroit’s failing economy and bring back some hope to the city.
Unsure if you’ve done everything needed to start your business? Incfile has a helpful Business Checklist you can use to stay on top of all the tasks needing to be completed.