10 Best states for starting a business

Attention libertarians! Find out where the cold, dead hand of the state weighs lightest. Rankings provided by the Small Business & Entrepreneurship Council.

Taxes
Top personal income tax rate: 0%
Top corporate income tax rate: 0%
Property tax: 2.90%
Energy
Electric Utilities Costs †: 0.74
Labor
Minimum wage: $5.85
† Index of state's average revenue/kilowatt hour.
1. South Dakota
How's this for being business friendly: South Dakota doesn't tax personal income, capital gains, corporate income or corporate capital gains. There's little crime, and energy costs are relatively low. "South Dakota has a great business environment," says Karen Kerrigan, CEO and president of the Small Business & Entrepreneurship Council, a nonprofit group in Washington, D.C., that advocates for reduced government taxes and regulations on small business. "State officials know they have a competitive advantage and they work hard to exploit it."
South Dakota Nevada Wyoming Washington Florida Michigan Texas South Carolina Virginia Alabama
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In exclusive rankings for FSB.com from the Small Business & Entrepreneurship Council, we looked for places low on taxes and light on government regulations. These places aren't. (more)