When choosing where to start a business, entrepreneurs have many things to consider. Starting a business in Illinois may have benefits for a business owner, depending on their goals. However, because of the tax rates in the state, in combination with local taxes, some business owners may worry about how taxes will impact the success of their business. Higher taxes may cause some business owners to consider other states to try to mitigate the amount of taxes they must pay every year.
Illinois is one of the highest states for business taxation
The tax burden imposed by a state and town or city is something all entrepreneurs should think about when deciding where to open their business. When it comes to taxation, Illinois is one of the higher states when compared to others in the nation. The state has the fourth highest corporate income tax in the country. When one considers the income tax, which is nearly 5%, and local property taxes, it’s understandable why business owners might worry about the tax burden when operating in the state.
High taxes, while burdensome, don’t necessarily mean that one shouldn’t consider starting a business in a specific area. There are other incentives to encourage business owners to stay in or move to Illinois. Entrepreneurs should consider all factors before making decisions about location.
Seek help when taxes are a concern
Starting a business in Illinois requires much thought and planning. New business owners often have many questions when it comes to taxes and other matters. Understanding the tax laws in the state is not always easy, especially for those new to business ownership. Anyone with tax questions can benefit from speaking with an attorney who has knowledge of the state’s tax laws.
