What business taxes do they charge?
| State | Main business taxes |
|---|---|
| Alaska | Corporate income tax on C corporations |
| Florida | Corporate income tax on C corporations; sales tax |
| Nevada | Commerce tax above $4 million of Nevada revenue; payroll tax; sales tax |
| New Hampshire | Business profits and business enterprise taxes |
| South Dakota | No corporate income tax; sales tax |
| Tennessee | Franchise and excise taxes on most LLCs and corporations; sales tax |
| Texas | Franchise tax above the no tax due threshold; sales tax |
| Washington | Business and occupation tax on gross receipts; sales tax; a tax on some individuals' large capital gains |
| Wyoming | No corporate income tax; sales tax |
Does moving there avoid other states' taxes?
Not on income earned elsewhere. A state taxes non-residents on income from business carried on there. An owner who moves to Texas but keeps a business operating in California still pays California tax on the California income. The benefit is largest for owners whose business can genuinely be run from the new state. See how states tax LLC and S corp income.
The same applies to rental income from property located in another state.
How do states decide where you live?
By domicile and presence: where your permanent home is, where you spend most of your time, where your family, doctors and accounts are, and in many states whether you spend more than 183 days there. Leaving a high-tax state usually needs clear evidence of a real move. Some states audit people who leave.
Keep records of where you spend each day in the year you move, such as travel records, so you can show when residency changed.
What does an example look like?
A consultant moves from California to Texas and keeps serving clients nationwide, working entirely from her new home. After the move, Texas charges no personal income tax on her profit, and her LLC is under the Texas franchise tax threshold. California can still tax income from work she did while resident there, and may examine whether she really moved. If she kept an office or staff in California, income from that activity would still be taxed there.
What about remote staff in other states?
Employees working from other states can create income tax and payroll obligations for the business in those states, even if the owner lives in a no-tax state. Register and withhold where staff work. See hiring your first employee.
What should you check before moving?
Map where income is earned
Customers, staff and property, by state.
Check the new state's business taxes
Gross receipts, franchise and payroll taxes.
Plan the residency change
Home, driver's licence, voter registration, time spent.
Move or register the LLC
If the business moves with you. See how to move your LLC.
Does forming the LLC there help?
Forming an LLC in Wyoming or another no-tax state does not remove income tax in the state where you live or operate. See home state or another state and states with no sales tax.
Sales tax is a separate question again, decided by where customers receive the goods.
Thinking of moving your business?
We look at where your income is earned, the business taxes in each state and the residency rules, and model the real saving before you move.
Questions people ask
Which states have no income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no personal income tax on wages and business profit.
Do businesses pay tax in states with no income tax?
Often yes. Texas has a franchise tax, Washington a gross receipts tax, Tennessee franchise and excise taxes, and most have sales tax.
If I move to Florida, do I still pay tax in my old state?
On income still earned there, yes. And you must show you really changed residence.
Does forming my LLC in Wyoming avoid state income tax?
No. Income tax depends on where you live and where the business operates.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- Texas Comptroller: 2026 franchise tax report forms and no tax due threshold
- Washington Department of Revenue
- Tennessee Department of Revenue: franchise and excise tax
- Florida Department of Revenue: corporate income tax
Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.
Related guides
More in Business tax by entity type
This guide is general information. It is not tax or legal advice for your situation.