Lowest Small Business Taxes in the Midwest

After implementing a sweeping package of business tax reforms, Ohio has the lowest small business taxes in the Midwest and is one of only two states nationally with no general tax on either corporate profits or personal property used in business.

In fact, a 2009 study by the Small Business and Entrepreneurship Council (SBE) ranked the Buckeye State as having the 10th best business tax structure in the nation, ahead of states such as South Carolina, Tennessee and Alabama.

Ohio’s business-friendly tax structure is stimulating creation and growth of small businesses. For example, Ohio entrepreneurs pay virtually no state taxes on the first $1 million in receipts – and only about $4,000 on the first $5 million.

Check out how one Ohio city is paving the way for entrepreneurs on CNNMoney.com. Read more.

Preferred Location for Business Development

Businesses are choosing Ohio as a preferred location for business development, relocation and expansion thanks in large part to the state’s tax environment.

Ohio's supportive business climate makes the state attractive to many entrepreneurs in a variety of industries from automotive to polymers. The state's tax reform rewards entrepreneurial and start-up activity by not taxing a company's first $1 million in annual gross receipts. This helps new businesses become established and show an earlier profit. In addition, the state has many innovative programs and services helping Ohio entrepreneurs and small business owners, through effective communication, collaboration, creativity and technology support, encourage sustainable growth.

Ohio's taxation system means businesses can:

• Reduce operating costs – No tax on inventory or corporate income
• Enhance productivity – No tax on investments in machinery and equipment
• Enjoy a level playing field – All companies taxed the same low rate
• Boost return on investment – No tax on product sold to customers outside Ohio
• Reward entrepreneurship – First $1 million in gross receipts are tax-free; companies with sales between $150,000 and $1 million pay only a $150 flat fee

Business owners and entrepreneurs are realizing how, in Ohio, they’re able to find the perfect balance between successfully growing a business and still enjoying life. Business owners profit from the ottom-line benefits of better work-life balance for their employees. Ohio continues to provide the necessary tools to support business growth and to allow individuals to pursue both their professional and personal aspirations -- Ohio truly is the State of Perfect Balance.

Click here for more information on Ohio's supportive business climate.

Ohio Gets Business Friendly with Tax Cuts

Read about Ohio's business friendly environment in an article by Roger Russell, senior editor of Accounting Today:

Call this a story about nurturing the goose that laid the golden egg.

At a time when some states are considering job-killing tax hikes to make up for budget deficits, one state is in the final phase of lowering its business taxes to a point that small business owners can collect their first $1 million in receipts virtually free of state taxes.

A number of years ago, Ohio implemented a sweeping package of business tax reforms making it more “business friendly” to businesses of all sizes. Today, it is one of only two states nationally with no general tax on either corporate profits or personal property used in business.

(Source: "Ohio Gets Business Friendly with Tax Cuts," Roger Russell, Senior Editor, Accounting Today, WebCPA.com.)

To read the complete article, click here.

Ohio Raises Funds by Issuing Bonds, Keeping Favorable Tax Climate Intact

Sticking with its commitment to eliminate a burdensome tax system, Ohio recently announced that it is coming to market with as much as $280 million in tax-exempt bonds due in 2013 as part of the state’s first plan to ease near-term costs by delaying principal payments on existing debt. Ohio has an AA+ rating from S&P, the second highest, and Moody’s Aa2 and Fitch’s AA, each the third highest.

Underscoring Ohio’s favorable tax climate, other states are raising taxes and fees, cutting services and issuing debt to help balance budgets after the steepest decline in tax receipts on record, according to the Center on Budget and Policy Priorities. States have dealt with or still face a total budget gap of $193 billion this fiscal year, the center said. This week’s largest municipal borrower, Illinois, plans to sell $3.5 billion in taxable notes to cover pension contributions due this year.

Click here to read the full story.