45 of 100
45. Sioux Falls, S.D.
Population: 137,222
Pro: Business-friendly tax structure
Con: Long drive from major cities

Businesses often relocate to South Dakota for tax reasons - and no wonder: there are no state corporate or personal income taxes, and no personal property, inheritance or inventory taxes. Sales tax is just under 6%, and the total of taxes residents pay is among the lowest in the country.

Sioux Falls' businesses are diverse. One big local employer is LodgeNet, an industry leader that provides broadband for hotels, but Sioux Falls is also a hub for call centers, credit-card offices, and data centers - it costs an estimated 45% less to open a business here than in New York. What's more, 13 colleges, universities and technical institutes in the area provide easy access to a highly educated workforce. The Sioux Falls Business Information Center offers free advice on topics such as planning, cash-flow management, and marketing assistance.

Sioux Falls features plenty of arts, culture and entertainment, including tbe South Dakota Symphony Orchestra and the Civic Fine Arts Association. The largest airport in South Dakota is located just a few miles outside of downtown. You'll need it if you like to travel: The closest major city, Omaha, is 162 miles away. -Peter McDougall

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NEXT: 46. Madison

Last updated July 02 2008: 11:16 AM ET
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