This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Best and Worst States for Small Business

Third-worst: New Jersey

Top personal income tax rate: No. 47 (tie) at 8.97%
Top individual capital gains rate: No. 48 (tie) at 8.97%
Top corporate income tax rate: No. 43 (tie) at 9%
Top corporate capital gains rate: No. 44 (tie) at 9%
Gas tax: 14.5 cents
Wireless tax: 9 cents
Internet access tax: No

With high income and capital gains taxes and the second-highest property taxes (behind New Hampshire), New Jersey earns a reputation among the least small-business friendly states. But it does have low consumption-based taxes, no individual AMT and low gas and diesel taxes.

And maybe that's why the state is still popular with business. "Interestingly, in states like California and New Jersey, [despite] traditionally high tax rates that makes it difficult for entrepreneurs, there are a significant number of patents filed. The environment for inventions and ingenuity is ripe in those areas, which make them, despite their tax unfriendliness, often successful states from an entrepreneurial level," MyCorporation's Sweeney says.

No-nonsense New Jersey Gov. Chris Christie implemented an executive order in September to implement the "Red Tape Review Commission" in an effort to streamline regulations and reduce unnecessary burdens and costs associated with regulatory compliance for businesses and nonprofits in the state.

Last week the commission issued a progress report. While it had some success easing restrictions on mandatory independent audits for nonprofits and setting up Web-friendly business license applications and filing requirements for Urban Enterprise Zones, there is still a lot of work to be done.

One issue is improving New Jersey's "inconsistent bidding and procurement process," according to the Feb. 8 release by the Office of the Governor. "State departments often have different bidding rules, including specification for binding, margins and typesetting for hard copy bids."

Also on the agenda this year: "examining obsolete permits and outdated and confusing laws."

5 of 12

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,644.61 -235.75 -1.40%
S&P 500 1,940.46 -29.61 -1.50%
NASDAQ 4,381.3110 -81.5910 -1.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs