Many states will offer lower small business taxes to entice economic development. This is an entirely legal maneuver, and it has been used to sway major companies and industries to develop in new areas. If you are considering a move to save on your small business taxes, think about what the move means in terms of finances as well as personal lifestyle.
Geographic Considerations
Most cities or states that offer tax discounts to entice business lack other mechanisms to draw in business. There may be a lack of natural resources or business infrastructure. A place like New York City, by contrast, does not have to entice financial firms because it is home to Wall Street and can offer other incentives.
Actual Savings
The cost of moving a business to another state can be extremely high. You should price out this option in order to determine when you will break even based on the savings. You should also consider whether you will owe more to your employees in the new area as a result of minimum wage, have to pay more for raw materials due to the remote location of the new office and other factors that may add to your expense.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.
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