SOURCE: Ohio Business Development Coalition

Ohio Business Development Coalition

July 14, 2010 08:15 ET

Tax Reforms Make Ohio One of the Best States for Business

Low Corporate Tax Structure Allows Entrepreneurs to Retain More Profits, Making Ohio and Its Enterprise Appalachia Region Stand Out as One of the Country's Best Business Startup Locations

COLUMBUS, OH--(Marketwire - July 14, 2010) - After implementing a sweeping package of business tax reforms, Ohio is one of the best states for business. With the reforms complete, Ohio and its Enterprise Appalachia region offer entrepreneurs one of the lowest corporate tax rates in the nation, according to a new analysis of state tax law distributed by the Ohio Business Development Coalition. Ohio is one of only two states with no general tax on either corporate profits or personal property used in business. And, Ohio's personal income tax rates are now 16.8 percent lower than they were just five years ago.

The state's low corporate tax structure was purposefully designed to stimulate entrepreneurial activity across the state and in Enterprise Appalachia. As a result, small businesses pay no corporate income tax, a flat $150 fee on the first $1 million in gross receipts, no tax on out-of-state transactions and no personal property tax on business inventory, machinery or equipment.

"In the 21st century global economy, entrepreneurs are the heroes who create jobs and stimulate economic growth," said Ed Burghard, executive director of the Ohio Business Development Coalition. "When your goal is a successful business startup, anything that erodes profit is a major obstacle. With its low overhead cost structure and business-friendly tax climate, Ohio's Enterprise Appalachia helps entrepreneurs conserve cash flow and reinvest profits into growing their businesses -- and their communities."

Ohio's unique state tax structure encourages small business profitability and wealth creation. Consider these examples:

  • Companies with sales between $150,000 and $1 million to Ohio customers pay only a $150 fee, while companies with the same income in surrounding states pay between $2,650 and $8,048 in taxes.
  • A company that grows to achieve $5 million in sales, half to clients outside the state, would pay $4,050 in Ohio taxes. In other Midwest states, the same company would pay between $13,425 and $28,676.

With no tangible personal property tax, Ohio encourages entrepreneurs to invest in inventory, machinery, equipment, furniture, fixtures and other assets needed to spur business growth. And, because only business activity that takes place in Ohio is taxed by the state, entrepreneurs have an incentive to serve customers across the country and around the world.

In addition to a low corporate tax structure, Ohio's Enterprise Appalachia features all the criteria needed to successfully start and sustain a new entrepreneurial venture -- access to supply chain and markets, access to business capital and support services, access to knowledge and labor and access to a balanced life. An increasing number of entrepreneurs are finding that they can enjoy professional success and a rewarding personal life without sacrificing one for the other in Appalachian Ohio.

About the Ohio Business Development Coalition
The Ohio Business Development Coalition is a nonprofit organization that provides marketing strategy and implementation to support Ohio's economic development efforts. For more information, visit www.ohiomeansbusiness.com. PW-OBDC-07132010

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