Every state in the US is now offering tax cuts and incentives to attract new business, but there are four states that top it all.

South Dakota:  There is no personal or corporate income tax and the sales tax is 4%.  “The favorable tax climate is a draw for penny-pinching startups.”

Texas:  Has no personal or corporate income tax but it does have a gross receipts and franchise tax.  Theses taxes charge businesses 0.5% of revenues if they are in retail and 1% of revenues for non-retail businesses.  To help small business during the recession the state legislature recently raised the revenue exemption level to $1 million, up from $300,000.

Montana: No Sales Tax!  “Despite skipping that revenue stream, the state’s coffers are overflowing: Montana is one of just two states currently in the black, running without a budget deficit. Corporate income and property tariffs are also competitively low. The Tax Foundation ranked Montana as the sixth most business-friendly state when it comes to taxation.”

Tennessee: No personal income tax but it does have a 6.5% corporate income tax.  “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.”

As of June 15th the SBA has taken steps to help small business owners who have been hit hard during this economic crisis. According to The Business Review “The SBA began accepting applications for emergency bridge loans of up to $35,000. Small businesses can use these loans, which were created by the economic stimulus bill, to make up to six months of payments on existing debt.” The SBA will allow a year, after the last disbursement, before loan payment begin, giving small business owners the small breather, some desperately need