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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.

Top personal income tax rate: 0%
Top corporate income tax rate: 0%
Property tax: 2.90%
Electric Utilities Costs †: 0.74
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
Read full story here. (more)
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)