4 of 5
Tax break: No personal income tax on wages and salaries
Best Places to Launch: Clarksville

While plenty of Tennessee newcomers dream of standing ovations at the Grand Ole Opry, not everyone can be Toby Keith or Faith Hill. But those who are still waiting to make it big can count on keeping more of their paychecks from the day job: Tennessee has no personal income tax on wages and salaries.

Tennessee residents with enough spare cash to invest will take a hit on income from most stocks and bonds. For business owners, the state tax code is a mixed blessing: No personal income tax means paychecks go unencumbered, but sole proprietors with LLCs or S-corps don't get to slip their profits through untaxed. Tennessee levies its 6.5% corporate income on those small businesses.

Retailers also struggle against a high 7% state sales tax. In some areas, local tariffs carry the sales tax rate up to a whopping 9.75%.

Still, as one of just nine states that goes without income taxes on salaries, Tennessee's "live free!" ethos attracts a fair number of entrepreneurs. Kingsport, Tenn., ranked #1 on our list of metro areas with the fastest small business growth rate. -Jennifer Lawinski

NEXT: Utah

Email | Print | Share  |  RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
LAST UPDATE: Oct 20 2009 | 9:27 AM ET
Best launch spots: See all 50 Growing economies, great workers, stable housing markets -- these metro areas have what entrepreneurs need to thrive. More
Why I Launched HereWe asked entrepreneurs in all 50 Best Places how their hometown treats entrepreneurs. More
5 deadly spots Every restaurateur knows about Cursed Locations. Here's a look at 4 trying to break the streak -- and one that failed. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.