Kentucky Ranks as Great Place to Start a New Business

Have you always wanted to start a small business? Is Kentucky a great place to fulfill your entrepreneurial dreams? According to a new study on the Most Tax-Friendly States to Start a Small Business, it is indeed.

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You can write up your business plan and do market research, but picking the right location may be your biggest challenge. Starting a business is hard work and requires a lot of planning. There are several business location factors to consider like finding a community that's a good fit for your products, calculating your expenses, and property tax rates. Higher taxes directly impact small business growth and job creation. Luckily, Kentucky has many programs to help ease the pain.

STARTING A SMALL BUSINESS IN KENTUCKY

Simplify LLC released a study on the Most Tax-Friendly States to Start a Small Business using 2023 data from the U.S. Department of Labor, Tax Foundation, and Federation of Tax Administrators.

"To find out which states are the most tax-friendly to small businesses in 2023, SimplifyLLC analyzed federal data across five key factors that impact small enterprises: corporate taxes, personal income taxes, sales taxes, property taxes, and unemployment taxes."

Here is how Kentucky ranked in each of the five tax categories analyzed:

· Corporate tax: No. 16 (5%)
· Personal Income Tax: No. 18 (4.5%)
· Property Tax: No. 6 ($968)
· Sales Tax: No. 25 (6%)
· Unemployment Tax: No. 38 (9%)

Among the key findings, the average state-local tax burden as a share of income was 11.2% in 2022.

TOP 10 REASONS TO OPEN A BUSINESS IN KENTUCKY

According to the Kentucky Cabinet for Economic Development, there are many reasons to open your new business in Kentucky!

1. Kentucky is in the middle of everything. Within a day’s drive of two-thirds of the U.S. population.

2. Unmmatched logistics. Kentucky ranks 2nd in the nation in total air cargo shipments.

3. Effective networking. Kentucky is well served by 20 interstates and major highways, major rail networks, barge traffic on the Ohio and Mississippi rivers, five commercial airports, and dozens of regional airports.

4. Cost of Doing Business. Kentucky ranks 1st in the nation for cost of doing business according to CNBC.

5. Electrifying power rates. Kentucky has among the lowest cost of electricity in the industrial sector in the U.S.

6. Kentucky is training the workforce of the future. Kentucky offers workforce recruiting and training assistance for new and existing employees at no charge.

7. Business-minded educational approach. Kentucky colleges and universities are true partners in the development of the workforce of the future.

8. Strong support for innovation and entrepreneurship. KY Innovation office offers startup and capitalization assistance as well as mentoring to help small businesses turn big ideas into reality.

9. Unsurpassed quality of life. With one of the lowest cost of living rates in the U.S., your dollars go further in Kentucky.

10. Business-friendly attitude. Businesses want fast, efficient, and personalized service, and Kentucky provides it.