10 Worst states for starting a business

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

By Mina Kimes

Taxes
Top personal income tax rate:	10.3%
Top corporate income tax rate:	8.84%
Property tax:	2.55%
Energy
Electric Utilities Costs †:	1.43
Labor
Minimum wage:	$7.50

† Index of state's average revenue/kilowatt hour.

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49. California

California may be the second sunniest state in the U.S., but it also has the worst personal income and personal capital gains taxes. Westward-bound entrepreneurs should also beware of lofty energy costs. "Most small businesses in California don't want to leave, but policymakers are nudging them out," Kerrigan says.

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