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Best And Worst States For Small Business

Third-best: Texas
The Lone Star State has no taxes related to personal income, individual capital gains, corporate income, corporate capital gains or estates. Texas also boasts a low level of state and local government spending and low workers' compensation costs, the SBE Council says.

The state does have high property and consumption-based taxes, as well as a large number of health insurance mandates and a very high crime rate, the council notes.

According to the website of Republican Gov. Rick Perry, Texas has brought in more jobs than any other state in the past 10 years.

Texas boasts a business-friendly atmosphere, particularly for start-up technology firms, including the Texas Enterprise Fund, which functions as a "deal closing" fund to enable the state to compete "directly with incentives offered" in other states, and the Emerging Technology Fund, which helps early stage tech firms as they get their footing, the website says.

Beginning in October, Perry's office has hosted 14 "Small Business Forums" across the state offering business owners access to information on work force development, training grants, expanding markets and other business growth opportunities.

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