In the Doing Business in the US Course we talk about capturing state incentives for business.
Since the United States is made up of 50 States and several territories you can get some competition going between the states – to get businesses and tax dollars into their state. Usually this is geared to bringing in big businesses.
But it can also be tailored to smaller businesses or individuals.
Recently multiple media outlets (here, here and here) reported that the state of Vermont is offering incentives to get folks to move there. Specifically they want remote workers that work outside of Vermont to start living there.
So these can be attractive to business owners.
Don’t Make a Big Mistake
Taxes can be a big cost in business. So it’s great to focus on lowering them. But I don’t want you to make a big mistake. You need to make sure you put your business objectives first.
In the US we say “don’t let the tail wag the dog” which roughly means don’t let the main part of the dog (what is really important) be controlled by the tail (the small part).
Where Tax Incentives Come In
The right time and place to think of tax incentives is after you have your direction. Once you know where and how you need to be set-up for business see if there are any tax incentives that make sense in light of your business model that will change your direction.
For instance if for business reasons you need to be in the New York City region a tax incentive might be your reason for your final decision on locating in New York, New Jersey or even Connecticut – each may be reasonably close to access New York but give different tax structures and incentives..
This stuff is really fun and it can be complicated. For more on where to locate in the US and other key things you need to know to make your US place check out the Doing Business in the US Course.
And if a plan like Vermont’s ends up making sense for you the Maple Syrup you’ll get to enjoy is just a bonus!
The Our Shawn
P.P.S. If you are enjoying our tips on Doing Business in the US. I also do tips on business planning – which will challenge your thinking on business and cause growth – you can sign-up here.
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