The Council of State Taxation recently released the findings of its state-by-state estimates of total state and local business taxes for 2010. The survey found that state and local taxes paid by businesses in the U.S. totaled $590 billion in 2009 – a decrease of 3.5 percent since 2008. This may mean the time is right for forming a company.
One state that scored particularly well in the study was Minnesota. Though the state generally has a reputation for high taxes, the Council of State Taxation’s study reveals that business taxed in Minnesota accounted for just 4.3 percent of the state’s gross domestic product last year – well below the national average of 4.7 percent.
Additionally, the study shows that Minnesota collected just $10 billion of the nation’s state and local tax collections. Only 14 other states had a lower tax burden.
The Minneapolis Star Tribune reports that members of the Taxpayers League of Minnesota attribute this favorable business climate in large part to Governor Tim Pawlenty’s efforts to keep the state competitive with resistance to tax increases.
Business owners need not live in Minnesota to incorporate in the state and benefit from these tax benefits. Online incorporation sites can offer information about foreign filings and how to make the most of corporate tax credits.
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