Forget Silicon Valley: In the era of virtual offices and telecommuting, the need for a brick and mortar headquarters at all is becoming less and less. Worse, taxes for small business owners in California is one of the highest in the nation, virtually putting startups out of business before they even get off the ground. Forget what you think you know about the best places for startups and start thinking outside the box (after all, that’s a must for entrepreneurs).
Take a closer look at the neighborhoods in New York City the next time you hop on that bus tour around town. While certain neighborhood of Manhattan are known as business meccas and Brooklyn is quickly becoming the startup capital of New York, don’t underestimate the other (and often much more affordable) neighborhoods. From Chinatown to Queens, there’s no rule that says successful startups are on a specific block.
Here are a few other locations to consider for a thriving startup location:
- Everett, Washington
Actually, just about anywhere in Washington State outside of downtown Seattle is a great option for a startup. Here’s the thing: There’s no state tax in Washington for small businesses. This can save your startup a bundle, and you’ll also be deep in tech territory from Microsoft to Intel. If you want to make a future list of the hottest tech startups a la those featured on LinkedIn, it’s all about location.
- Outside Tijuana, Mexico
Who says you can’t go abroad and make a fortune as a startup? There are very safe and gorgeous areas near Tijuana, and you’ll still be just a 30 minute drive from downtown San Diego. However, Mexico (and many other foreign countries) have a tax agreement with the US and you’ll be considered “foreign income exempt” from state taxes and parts of federal taxes. Follow Entrepreneur’s tips for launching a business abroad to get started on the right foot.
- Kansas City, Kansas
Like Everett, Wash., just about anywhere in Kansas will do since it has some of the lowest state taxes for businesses in the country but makes things even sweeter with very low cost of living. You can easily afford an office three times the size of that you could swing in other metro areas. Plus, Kansas City has a unique vibe that’s all metro but at a sliver of the price.
Location, location, location should be the mantra of any entrepreneur. Have you found your dream zip code?