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Best And Worst States For Small Business

Second-best: Nevada
It's understood that "what happens in Vegas, stays in Vegas," but small-business owners will be happy to know the state also doesn't want them leaving.

Nevada does not tax personal income, individual corporate gains, corporate income or corporate capital gains. It also has no death taxes and low workers' compensation costs, according to the council report.

On the downside, Nevada does have high consumption-based taxes, high unemployment taxes and a high state minimum wage.

It is among states hardest-hit by the housing crisis and unemployment -- topping 14.5%, according to a Friday press release from the governor's office.

Bringing in jobs will be a high priority for the state's new governor, Republican Brian Sandoval.

"We cannot burden struggling businesses with tax increases ... We must allow sunsetting taxes to expire at the end of June and provide businesses the environment in which to begin hiring again," he said Friday, referring to a tax package passed in 2009 that included temporary reductions to payroll taxes for small businesses, among other measures. The package is set to expire June 30.

He is expected to release his budget today.
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