Starting a new business of any type requires making many decisions and the location is right at the top of the priority list. One primary reason why location is important even for a home-based internet business is how much your state and community permit you to retain after paying taxes. Some areas have multiple layers of taxes that can include a city tax, county tax, state tax, and lots of fees for permits, etc. This article will open your eyes to the Mississippi Gulf Coast as a possible location for your business.

Consider the Mississippi Gulf Coast as a great location for your business. Start with state sales tax at a maximum of 5% which is one of the lowest in the nation. The state tax law permits you to deduct almost everything that is deductible at the federal level which means that the actual taxes you pay can be as low as zero after deductions. This article by the Tax Foundation compares all of the states for corporate income tax brackets in 2021.

The state sales tax rate is 7% one of the highest in the nation but there are mitigating factors. If you buy a vehicle your tax rate will be even lower at 5%. When you consider the lower vehicle, boat, and RV tax rates the general rate is not bad. Factor in the low-income tax rate and the balance comes out well for the state.

It’s also important to note that employees will not pay income taxes on retirement income when they reach the eligible age. This includes not only Social Security but IRA and 401k withdrawals. Capital gains on taxable income are 5% lower than in many other states.

Mississippi is ranked number 5 (that’s good) when it comes to unemployment insurance costs. Compare this to Texas at 16 or dare I say California at #45. Mississippi is rated #13 for corporate tax. Compare this to Texas at #47 or Illinois at #36.

The cities on the Mississippi Gulf Coast including unincorporated county areas do not tax businesses. Compare this to rates charged by municipalities in other states.

The property tax rates in Mississippi are also near the lowest in the nation for two reasons. The first is that tax rates can only be adjusted every four years which is great, it permits you to adjust your income to any potential increase, and second, the rate charged on a property is reasonable to start with. I came from California where there is an automatic 2% increase in property taxes every year.

The only time that would change is if property values fell substantially. So an effective increase over four years of 8% in California. I have not seen taxes, in general, go up 8% from period to period along the Mississippi Gulf Coast although it is possible and there is no guarantee that they will not.

The last thing I want to cover regarding taxes is that Mississippi is a conservative state and elected officials at all levels are loathed to increase taxes. In fact, a few years ago the state of Mississippi lowered its tax rates. Yes, they lowered the rates. The state also gives deductions for seniors over 65 on their personal residence. The credit is substantial.

I have advised in other articles that the “tax climate” is important to assess. If your business is located in a state that is constantly looking for revenue from businesses e.g. California, Illinois, New York, and others, your taxes will probably continue to rise in the short term.

There is also as of the date I am writing this, a movement in this country to tax businesses to death as a source to fund large spending projects. I am not going to get into the politics of this as any intelligent person knows that businesses obtain funds to pay taxes from the public. The point that I am trying to make it in their rush to tax large businesses, there is usually fallout even for medium and small businesses. The last thing you want to do is start a business in a state or locality that is jumping on this tax business bandwagon.

I wish I could speak for the entire state of Mississippi regarding business opportunities. I know the Gulf Coast so I will speak about the Gulf Coast because as with many other states, there are differences between regions. The Gulf Coast has a vibrant business community that is growing.

People are moving here from all around the country for our great climate, the beaches, and of course our casinos. Shipbuilding, oil refining, and the port all add to employment opportunities with good salaries.

This brings me to the cost of living and some myths about Mississippi in general. I moved here from California and you can read my story in this blog article. Since I have been here, I have been reading much that has been written about Mississippi by people who live in faraway cities.

Frankly, almost all articles are about cities and then about the largest cities or even mid-sized cities. This is understandable because most people in this country live in cities. I have learned that life does actually exist outside of cities (our cities are smaller).

Many articles if not most compare Mississippi to other states or cities and constantly rank Mississippi at the bottom for education etc. Have you considered their metrics? The metrics are based upon “city bias”. When a city has lots of money to throw at education that is often but not always reflected in higher test scores. Mississippi as a state has the lowest cost of living in the nation. So why would you look at the income earned in Mississippi and say that it is very low? Compared to what?

Because the cost to live here is between 35-70% lower than most areas in the country would you not expect that the income is perhaps lower? That’s the fact that makes Mississippi and in particular the Mississippi Gulf Coast a great place to start a business.

Wages are lower here than in most other areas of the country particularly the big cities. This means that you can afford to hire Americans to do the work that some large corporations send offshore.

I sold a house to a client for less than $45,000 in a very nice area. Yes, it was a fixer but the fixed value would not have exceeded $85,000. Compare this to a house in Orange County, CA at $800,000. People along the Gulf Coast can work at Mcdonald’s and afford to buy a house.

People in Orange County, CA who work at Mcdonald’s have to combine their income with a half dozen family members to afford a house. This means there is an opportunity here to hire Americans to work at your business.

Because the tax rates that I discussed above are reasonable, people you would hire at or near the minimum wage for example will probably pay little or no state taxes. Again, this is a great opportunity for someone to start a business that requires employees.

Let’s talk about the infrastructure. I am impressed at how well the roads are maintained here. I recall driving to the office every day over a rutted interstate in California that was responsible for many millions of dollars in suspension and tire damage.

We do not have a traffic problem here, people live close to work another plus. Not to mention that the cost of fuel in Mississippi is nearly the lowest in the country. Great for people living on our local wage structure.

Rent for commercial and business buildings is tied to the local economy. The cost per square foot is low compared to rents in larger cities. There are lots of properties available and land to build more. There is a building boom here for both commercial and residential properties.

Permits are required for many businesses, this is not the wild west. Permits are a good thing because they require compliance with zoning so that people are not permitted to park an RV next to a million-dollar house. Unlike obtaining permits in some larger metros, permits here can be obtained without lots of “red tape”.

It has been my experience interacting with planning and zoning departments in several areas where the employees are pleasant to work with and prompt with delivery.

I think that the permitting process is another key if you plan to build a building or locate an existing business here. Working with planning and zoning employees in large metros has sometimes been quite a challenge. In fact, when I would visit those departments in other states, I would always tell them what I was going to do and wait for a response.

I would never ask for their opinion unless I wanted to thank the project. Along the Mississippi Gulf Coast, it is the opposite, I ask their opinion about how I can accomplish what I want to do. They actually help. Wow!

The Mississippi Gulf Coast is located on Interstate 10 and U.S. Highway 90 with several excellent state highways that lead north. You can get to Alabama and Florida in just over an hour. New Orleans is located about an hour to the West. It’s an ideal location to serve the entire Gulf Coast. Even a drive to Houston is not difficult.

The Mississippi Secretary of State will permit you to go online and open your business for less than $60. Compare that to California at over $800 and Nevada with taxes over $300. There is no annual renewal fee in Mississippi compared to other states that charge the same fee every year e.g. California even if you earned no income. The Secretary of State site is easy to navigate and you can conduct all of your business there e.g. obtain a certificate of good standing. Another reason why the Mississippi Gulf Coast is a great place to do business.

Supplies and other costs are generally lower along the Mississippi Gulf Coast and you can obtain just about anything you need here. If you can not find it along the Gulf Coast, you can obtain it from Mobile or New Orleans both about an hour from the area. Finally, there is also an order by mail which many of us do for that one item you can’t find anywhere.

One of the great things about the Mississippi Gulf Coast is that the small business people that I work with have either started their own businesses or are part of a family legacy. The person who maintains the air conditioning and heating at my properties is dependable and is a real expert.

He charges a fraction of what I had to pay in California and yet, he makes a good living. The same is true of the person who does my electrical work and other tasks. All of these individuals come from long-time Gulf Coast families. They are Americans doing work that is often left to new immigrants in the big cities because “Americans will not do these things”.

If you want to start a plumbing, electrical, or other trade business, this is the place to do it. The state of Mississippi just passed a bill that will recognize licenses from other states a great idea. This means that if you are a licensed electrician in another state you can come here and obtain a license without additional requirements, just apply for a license here.

The Mississippi Gulf Coast has excellent high schools in the area that send a large percentage of their graduates to college. This means that we have a pool of talented people who are computer-literate and can work in the technology field.

Combine that with students who learn the trades and you will find we have a balanced economy here. The Mississippi Gulf Coast is not particularly dependent on any one segment of the economy. There are thousands of retired people here who receive retirement income which keeps the economy going even in hard times.

Finally, I want to say that the Governor of Mississippi made some excellent decisions concerning the COVID crisis. Mississippi’s list of important jobs was extensive. For all practical purposes for a short time, the state did not shut down as others did. Our infection rate was about the same as others yet most people kept working. The casinos were shut down for a short time and yes, restaurants (inside eating) were too. Our economy opened well before many others.

Tourists came here to escape the big city lockdowns. The Gulf Coast experienced one of the busiest summers this year in history. Our beaches were wide open and not full of crowds as in Florida. The mask mandate was also lifted many months before other areas.

I mention all of this about the COVID thing because if it happens again, you will find that Mississippi is committed to moderation and ensuring that people do not lose their livelihood because of political decisions.

List of some low cost and low barriers to entry.

Vacation Rental Cleaning

There is always a place for excellent vacation rental cleaners. With hundreds of vacation rentals on the Mississippi Gulf Coast, there is plent of opportunity. Owners/managers are always shopping for the best cleaning companies to use in search of that five-star rating. Check out this article on how to get started

If you would like to learn more about the area, please visit my real estate site at Logan & Anderson, Gulf Coastal Realtors