Corporation tax rates, the percentage of the profit of a company that pays it to the government, can vary greatly from state to state. Most states (except six: Nevada, Ohio, South Dakota, Texas, Washington and Wyoming) bring a local corporation tax on a profit of $ 100,000 on top of the federal rate of 21%.
But which state charges the most? To find out, Financial Site, based in the UK, Businessfinancing.co.ukCreated a hypothetical company and applied the tax rules of each state using data from Big Four Firms, Deloitte and PricewaterhouseCoopers.
Related: 4 tax strategies that every highly earning entrepreneur must know before 2025
The fake company was public, in the technical sector, and had a turnover of $ 1 million. It also had five to nine employees, made a profit of $ 100,000 a year and had a profit margin of 10%. The owner’s salary was $ 59,000.
Based on this data, The study found That companies in Minnesota would pay the most, around 30.8% on a profit of $ 100,000 (or $ 30,800) on top of the federal amount. Illinois would pay the second highest, around 30.5%. California (29.8%), Delaware (29.7%) and Massachusetts (29%) complete the top five.
Related: How much money do you need to retire comfortably in your state? Here is the breakdown.
The lowest tax payment was around $ 21,000 on $ 100,000 profit. Six states went to the lowest (in addition to the six that of course do not charge anything). Ohio, Nevada, South Dakota, Texas, the state of Washington and Wyoming were all bound for the lowest.
The report also looked at global trends and discovered that the country with the highest tax rate was Guyana for small companies. The company that created the study should pay $ 40,000 on $ 100,000 profit.
The countries with the lowest taxes on small companies were the Bahamas (which charge a small license costs), Bahrain and the United Arab Emirates, who, according to the model of the study, did not charge corporation tax on a profit of $ 100,000.
Related: Hidden costs cost our small companies $ 153 billion each year – here is how you can ensure that you do not lose a cent
Corporation tax rates, the percentage of the profit of a company that pays it to the government, can vary greatly from state to state. Most states (except six: Nevada, Ohio, South Dakota, Texas, Washington and Wyoming) bring a local corporation tax on a profit of $ 100,000 on top of the federal rate of 21%.
But which state charges the most? To find out, Financial Site, based in the UK, Businessfinancing.co.ukCreated a hypothetical company and applied the tax rules of each state using data from Big Four Firms, Deloitte and PricewaterhouseCoopers.
Related: 4 tax strategies that every highly earning entrepreneur must know before 2025
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