I live in Hawaii and I am planning to own a business in the future. I have enough money to start a business that will make around 300-400k a year. Hawaii is not business friendly at all, Too many taxes and regulations and the cost of living is high. I know Seattle has no state income tax but there sales tax is high. Portland has an income tax rate of 9% but has no sales tax. The cost of living is lower in Portland and therefore the budget of business is much cheaper than Seattle but is there any oppurtunities?Which is better for my situation Seattle or Portland?
It all depends on the nature of the business.
If it is predominately online or through catalogs, Oregon makes more sense since the business would not have to support sales tax calculations nor collection. Note that Oregon income tax paid is federally deductible.
If it is mostly services within the state, then Washington makes more sense to minimize income taxes.
If the business falls into neither category, then maybe give some more hints about its market, capitalization, and expenses?
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