New York residents may be interested in a new study looking at the overall ‘business climate” of 38 different states. Although it is easy to rank which states have the lowest or the highest taxes, it takes first-hand experience to decide which states make a small business owner’s life easier. New data compiled by Thumbtack and the Kauffman Foundation has found that a state’s low tax rate may not be the most important thing new entrepreneurs are looking for.
According to the study’s grading system, the low-tax states of Washington and Florida both scored Cs. Despite the tax breaks offered to small business owners in those states, study participants found the rigid zoning laws and complicated bureaucracy too difficult to deal with. A spokesman for the business marketing websiteThumbtack commented that making things easier is the simplest thing politicians can do to make their state more attractive to small business owners.
One aspect of bureaucracy that can cause business owners a lot of headaches is licensing. Although licenses can be helpful for protecting the public, the requirements can sometimes actually do more to protect established businesses from having to face any new competition. Currently, licensing requirements very drastically from state to state. In Louisiana, 70 percent of low-wage occupations require a license while Wyoming only requires licenses for 24 percent.
Because business law is different in each state, small business owners in New York will need to become familiar with the specific laws that will affect them. An attorney with experience in business law can assist a client by determining the applicability of, and helping to ensure compliance with, various state and local statutes and regulations.
Source: Business Insider, “These Are The Best And Worst US States For Small Business “, July 06, 2014