A new study says Utah offers one of the best environments for small businesses.
A study by Thumbtack and the Kaufmann Foundation gives Utah an A+ grade for a business-friendly tax code and regulatory environment. Idaho, Texas and Virginia are the only other states that score an A+.
To be sure, low-tax states such as Texas generally score well, while high-tax states such as California and Illinois flunk their tests. This may be because the kind of politicians who like high taxes also like bossing people around. But not always. Minnesota, a high-tax state, earns a respectable “B” for business climate, partly because it is easy to start a business there. Washington and Florida, both low-tax states, earn a “C” and a “C+”. Entrepreneurs fault Washington’s harsh zoning laws and gripe that in Florida new firms must jump through hoops like dolphins at SeaWorld.
The lesson for politicians is: “no matter what else you do, make things easy,” says Jon Lieber of Thumbtack. “This may seem obvious but a lot of governments don’t do it right. Don’t require a plumber to spend two days at city hall pulling permits when he could be doing jobs.”
It’s not all good news for Utah in the study. The state is in the mid-range of states requiring a license for low-income occupations. 45% of those incomes require state licensure.
