Index score: 35.84

Having no income, capital gains or estate taxes helps Wyoming score third on the list, although high property and unemployment taxes offset that somewhat. "Wyoming has a wonderful business environment and a great natural environment," says Kerrigan of the SBE Council. "That combination is good for business opportunity and growth." Because of the state's natural beauty, a lot of wealthy people are attracted there, she says: "Everyone under the sun has a ranch, and there will always be demand for products and services in that realm." But, there may be downsides for entrepreneurs operating in such a rich environment, she says, since living costs can rise quickly and businesses have to make sure their offerings keep up with often-fickle, demanding customers.