{"id":2335618,"date":"2024-09-02T12:45:58","date_gmt":"2024-09-02T16:45:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kentucky-among-the-least-expensive-states-to-start-a-business-washington-examiner\/"},"modified":"2024-09-02T12:51:10","modified_gmt":"2024-09-02T16:51:10","slug":"kentucky-among-the-least-expensive-states-to-start-a-business-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kentucky-among-the-least-expensive-states-to-start-a-business-washington-examiner\/","title":{"rendered":"Kentucky among the least expensive states to start a business &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fkentucky-among-the-least-expensive-states-to-start-a-business-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2335618&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Kentucky\u2064 has been identified as one \u2064of the\u200b least expensive states in the U.S. to \u200bstart a \u2063business, according \u2062to a \u2062recent study by Zibtek, a software development \u2063consultancy. The study assessed various factors \u2063such as taxes, utility costs, filing fees, and local economic conditions, placing Kentucky \u200c45th making\u200d it \u200cthe sixth least-expensive state for startups.<\/p>\n<p>The state notably \u200bhas a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-ranks-near-bottom-in-state-business-tax-climate-report\/\" title=\"California&#039;s State Business Tax Climate Ranks Poorly: Report\">corporate \u200bincome tax rate<\/a> of 5%, ranked 33rd nationally, compared to California&#8217;s\u2062 highest rate of 8.84%. For\u200c personal income tax, Kentucky is\u200c positioned 37th, with\u2063 neighboring states Ohio, Indiana, and Tennessee\u2063 having\u200b lower \u200drates.\u2063 In January 2025, there is a potential <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">income tax cut<\/a> planned, which could reduce \u2064the rate to \u20643.5% by 2026, down from the current 4%.<\/p>\n<p>The report highlights that states with low\u2064 or no income\u2063 tax can\u2062 attract business owners and employees, thereby increasing disposable income and \u2064consumer \u200bspending. Kentucky also performs \u2063well compared\u200b to its neighbors regarding average\u200d monthly electric bills and sales tax.\u200c Furthermore, the state experienced low internet crime losses, indicating a\u2064 favorable environment for startups. Kentucky&#8217;s mix of low\u2063 taxes and utility costs creates a\u2064 supportive landscape\u2062 for new businesses.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Kentucky among the least expensive states to start a business<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1743430\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) &ndash; Kentucky is one of the least expensive places in the United States to start a business, a recent study found. It&rsquo;s a designation that has both advantages and drawbacks.<\/p>\n<div class=\"article-paywall\">\n<p>Zibtek, a software development consultancy business, scored the states on factors such as taxes, utility costs, filing fees, the local economy, online crime and personal expenses. After compiling the scores, Kentucky finished 45th overall, or the sixth least-expensive state in the study.<\/p>\n<p>The highest ranking the state received was for its corporate income tax rate. Kentucky&rsquo;s 5% tax came in 33rd nationally. California, the state determined to be the most expensive state for startups, had the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-adviser-admits-his-spending-will-cause-inflation-going-to-be-bumps-concerns-very-serious\/\" title=\"Biden Adviser Admits His Spending Will Cause Inflation: \u2018Going To Be Bumps,\u2019 Concerns \u2018Very Serious\u2019\">highest corporate tax rate<\/a> at 8.84%.<\/p>\n<p>For personal income tax, Kentucky ranked 37th. Neighboring states Ohio (38th), Indiana (40th) and Tennessee (48th) all have lower rates than the Bluegrass State. However, Kentucky lawmakers are likely to pass another income tax cut when the General Assembly convenes in January for its 2025 session. If that takes place, individuals would pay a 3.5% tax in 2026, down from 4%. It was as high as 6% as recently as 2017.<\/p>\n<p>&ldquo;States with low or no income tax can attract both business owners and employees by increasing disposable income, potentially boosting consumer spending,&rdquo; the company said in a statement to The Center Square. &ldquo;Favorable corporate tax rates allow businesses to reinvest more earnings into growth or distribute them to shareholders, while reduced property taxes and lower monthly electric bills improve cash flow and margins, especially for energy-intensive industries.&rdquo;<\/p>\n<p>Kentucky outperformed its neighbors in terms of the average monthly electric bill and sales tax, coming in 38th in both. Tennessee had the second highest sales tax cost, while Ohio was 21st and Indiana was 25th. Meanwhile, Indiana was 23rd for utility costs, with Tennessee 30th and Ohio one spot lower.<\/p>\n<p>For other metrics, Kentucky had the third lowest internet crime losses, was ranked 43rd nationally for personal expenses per capita and finished 42nd for gross domestic product per capita.<\/p>\n<p>While it may be cheaper to start a business in Kentucky than most other places, Zibtek said that doesn&rsquo;t always make it better.<\/p>\n<p>&ldquo;States with low startup costs might also have lower GDP per capita and personal consumption expenditures (PCE), indicating a weaker economy and reduced consumer spending, which could limit growth opportunities,&rdquo; the company said. &ldquo;Networking and talent recruitment might also be more challenging due to fewer businesses and a smaller skilled workforce.&rdquo;<\/p>\n<p>California, New Jersey, Massachusetts, New York and Illinois were the five most expensive states for startups, according to the study. Wyoming was the least expensive state, followed by South Dakota, Nevada, Ohio and Texas.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/strong><\/p>\n<p>According to the U.S. Census Bureau, Kentuckians started 54,649 businesses in 2023. That was up 17.2% from 2022.<\/p>\n<p>However, Wyoming &ndash; a state with a smaller population than Louisville &ndash; had 58,486 new businesses started last year. That was up more than 39% from the previous year.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1743430\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1743430\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kentucky ranks as one of the most affordable states in the U.S. for starting a business, according to a recent study. This status comes with both benefits and challenges. Zibtek, a software development consulting firm, evaluated states based on various criteria including taxes, utility expenses, filing fees, local economic conditions, online crime rates, and personal costs. In the overall ranking, Kentucky placed 45th\u2014making it the sixth least expensive state for startups. The state received its highest score for its corporate income tax rate of 5%, which ranked 33rd nationally; in contrast, California was identified as the most expensive state for new businesses with an 8.84% corporate tax rate.<\/p>\n<p>For personal income tax rates, Kentucky was ranked 37th; neighboring states like Ohio (38th), Indiana (40th), and Tennessee (48th) have lower rates. However, there are indications that Kentucky lawmakers may implement another income tax reduction when they reconvene in January for their 2025 session\u2014potentially lowering individual taxes to 3.5% by 2026 from the current rate of 4%, down from as high as 6% in recent years.<\/p>\n<p>Zibtek noted that states with low or no income taxes can attract business owners and employees by increasing disposable incomes which may lead to higher consumer spending. Favorable corporate tax rates enable businesses to reinvest profits into growth or distribute them among shareholders while reduced property taxes and lower utility bills enhance cash flow\u2014particularly beneficial for energy-intensive sectors.<\/p>\n<p>In terms of average monthly electric bills and sales tax rates, Kentucky performed better than its neighbors by ranking 38th in both categories; Tennessee had the second-highest sales tax cost while Ohio ranked at 21st and Indiana at 25th respectively. For utility costs specifically: Indiana was rated at number 23 while Tennessee came in at number30 and Ohio just below that.<\/p>\n<p>Other metrics showed that Kentucky had one of the lowest internet crime losses nationally but ranked poorly on personal expenses per capita (43rd) and gross domestic product per capita (42nd). While starting a business may be cheaper in Kentucky compared to many other locations, Zibtek cautioned that this does not necessarily equate to better economic conditions: &#8220;States with low startup costs might also exhibit lower GDP per capita and personal consumption expenditures,&#8221; indicating potential limitations on growth opportunities due to weaker economies.<\/p>\n<p>The five most expensive states identified for startups were California, New Jersey, Massachusetts, New York ,and Illinois . Conversely ,the least expensive included Wyoming ,South Dakota ,Nevada ,Ohio ,and Texas . According to data from the U.S.Census Bureau,Kentuckians launched approximately54 ,649 new businessesin2023\u2014a17 .2 %increasefrom2022 .However,Wyoming\u2014a state with fewer residents than Louisville\u2014saw58 ,486newbusinesses started last year,a39 %increasefromthepreviousyear<\/p>\n","protected":false},"author":1,"featured_media":2335619,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/05\/iStock-1058269468-1024x683.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[4284,8017,14643,12830,32076],"class_list":["post-2335618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-business","tag-cost-of-living","tag-entrepreneurship","tag-kentucky","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/05\/iStock-1058269468-1024x683.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2335618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2335618"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2335618\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2335619"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2335618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2335618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2335618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}