The greatest dynasty of the early 21st century isn’t the New England Patriots, Alabama Crimson Tide or Golden State Warriors. It’s the state of Wyoming! In particular, its business climate.
We recently reported the results of the Tax Foundation’s 2019 State Business Climate study, and for the fifth straight year, Wyoming ranked #1.
So, how does the Cowboy State keep doing it?
It would be easy to point out the obvious: Wyoming doesn’t tax income, either personal or corporate. Needless to say, it’s attractive to start a business in a place where you keep all your earnings. Nor does the state try and get you with sales taxes. The sales tax rate of 4 percent is modest and one of the lowest in the country.
That’s a pretty good starting point, but to really understand why Wyoming is such a good place to do business, you should start by looking at a statistic that’s, on the surface, a weakness. Wyoming ranks at 38th in the country in property taxes. The land might be beautiful, but you’re going to pay for it.
Here’s the thing though:
Wyoming still takes important steps to protect its property owners through what’s called a “dynasty trust.” The purpose of the trust is to protect family legacies like a business.
The dynasty trust allows the estate of a deceased person to be protected from federal taxation for up to 1,000 years. Property and business interests can be included in the estate. You might pay higher property taxes in the here and now, but your descendants are going to be much better off. And both your land and business is much more likely to stay in the family.
When you can take a perceived weakness and turn it into a strength, you’re going to be pretty tough to beat. The aptly named dynasty trust serves to perpetuate the Wyoming economic dynasty.
Tempted to move to Wyoming to start your business? Be sure to consider some other important factors, as well, when deciding where to incorporate.
