Catch up on stories from the past week (and beyond) at the Slashdot story archive

 


Forgot your password?
Close
typodupeerror
×
Businesses The Internet

Which US States are e-Commerce Friendly? 94

Posted by Cliff from the finding-a-place-to-work dept.
pHaze asks: "I am about to take a long drive across the USA with my girlfriend to try and find a state to live in. We are both professional geeks and plan to settle and start a business. We were wondering if slashdotters could offer some advice on which state is the best to start an e-commerce business in. Which has the most e-commerce friendly/unfriendly laws (taxation, copyright, spam, privacy), the highest availability of broadband (and bandwidth in general) and is the most cost effective for a business."
This discussion has been archived. No new comments can be posted.

Which US States are e-Commerce Friendly? More

Which US States are e-Commerce Friendly?

Comments Filter:
  • I've always liked Ohio [state.oh.us].
    • You can't be serious. The place is a dumpster. A hell on earth filled with ignorant rubes (Klan members, the lot) who can't drive (55 in a 65 zone in the far left lane, EACH AND EVERY TIME).

      Have you seen their latest slogan??? "Birthplace of Aviation" What the hell is this? The Wright brothers were born there and this is Ohio's greatest claim to fame. THE PLANE NEVER FLEW IN OHIO!! Kitty Hawk, NC!!!

      Every time I am forced to pass through Ohio I have to dodge the over-zealous cops trying to enforce the ridiciously slow speed limits on the asinine loops of expressway. In the mean time, I can't get up to speed because of the buffoons getting on the expressway and cutting across two lanes to get in the left "in case a truck is coming behind [them] quickly!" An actual quote from an Ohio native.

      Seceed Michigan: It's time to free ourselves of the tyranny of our terrible neighbors: OH, IN & WI.

  • This might scare you, but it's true. (Score:2, Interesting)

    by Anonymous Coward
    New Jersey
    • FYI, New Jersey upped the minimum corporation tax to $500 from $200 this year (they raised taxes 150% for S Corps, to be sensationalist).

      And things looked even uglier in the final days of the budget process -- there was a seriously-considered proposal to institute a minimum corporate tax based on revenue, not just profits.

  • The best place is overseas (Score:4, Funny)

    by Green Light ( 32766 ) on Friday February 21, 2003 @09:31AM (#5351687) Journal
    Sealand [slashdot.org] is very friendly to e-commerce, I hear.

  • Virginia.... (Score:3, Informative)

    by karrde ( 853 ) on Friday February 21, 2003 @09:35AM (#5351698) Homepage Journal
    After all according to one of our license plate types, we are 'The .com state'

    But seriously look into it, a few years back the Gov. put in some e-commerce insentives to encourage internet buisness to come to VA. Three places you can go that are connected, NoVa (up by DC), Richmond (The capital), and Hampton Roads.

    Each has thier ups and downs.

    • Virginia has passed UCITA. Whether this is a good thing or a bad thing is an exercise for the reader.

      • The UCITA is very friendly to ecommerce. Just put a license agreement on your website that says: "Each time you download a page off this site, you agree to the following: You will pay a $5 fee. You will force at least 10 new people to visit this site. You will visit this site again within 12 hours." Hire a few lawyers, wait for the entire population of the Earth become hooked into this scheme, and let the money roll in!

    • Re:Virginia.... (Score:3, Informative)

      by Takeel ( 155086 )
      Three places you can go that are connected, NoVa (up by DC), Richmond (The capital), and Hampton Roads.

      Each has thier ups and downs

      I wouldn't live in any of those areas. All three share ridiculous traffic, a high cost of living, and *very* inflated property values (at least, if you want to live anywhere that doesn't have a very high crime rate).

      However, don't count the Old Dominion out totally. There are other parts of the state that are beautiful, have a lower population density, *and* are reasonably priced; these include the Shenandoah valley and the Roanoke valley.

      If you want to get hardcore rural, you might consider extreme southwestern Virginia...and I do mean hardcore (supermaximum security prisons, double-wide trailers, and no 7-11's in sight for miles). Unfortunately, these areas do have very few high-speed Internet options, if this is one of your criteria.
    • Plus, if you live in VA, you'll be able to throw a cream pie at Hollings at least once a month!
  • I don't know about how you will rate your list there. One thought is to find a nice place to live and register the company in another state that has laws in your favor (and host the server from there as well).
    In this day and age of drop shipping, UPS, FedEx, faxes and the like, maybe the thing(s) that you should be looking for are:
    Schools, Libraries, Parks, Cultural Events, transportation, proximity to family, jobs (what if your company goes out of business?), friends, and so forth.
    Good luck.
  • I have no real reason to say this other than wanting more small tech businesses in my state.

    Hire me.

    :)

    • Re:Massachusetts (Score:1, Informative)

      by Anonymous Coward
      I highly recommend to NOT do business in Massachusetts. I own a small e-commerce shop running mail order out of the Boston area, and the cost of living is ridiculous. Even with the low occupancy rate of offices and warehouses in the area, the rents are still outrageous.



      The cost of living is on par (maybe slightly lower) with the San Jose / San Francisco / Silicon Valley area for cost of gasoline, food, rent, and housing. Basically, it's outrageous.



      On the plus side...



      The commonwealth does have some economic incentive programs for large companies, and DSL / Cable Modems are everywhere, and the sales tax is reasonably low (5%). There's stuff to do every weekend, we've got colleges and universities up the wazoo for college interns.



      We're thinking of moving our business to Las Vegas. Cheap land, reasonable work force, no income taxes... We'll see how that pans out.

    • Seconded.

      Now that Romney's in, I expect taxes should get lower (they're among the lowest in the Northeast). Plus, you get the most cultured city in the US!

  • North Carolina or Virginia (Score:4, Interesting)

    by Gulthek ( 12570 ) on Friday February 21, 2003 @09:55AM (#5351812) Homepage Journal
    Virginia is the "birthplace of the internet" and North Carolina has Research Triangle Park (RTP). In and around RTP you will find a low cost of living, high availability of broadband providers, and no lack of hard working undergrads or recent graduates from the UNC-Chapel Hill, Duke, and NC State Universities as well as many tech oriented vocational schools.

  • Texas (Score:3)

    by mfos.org ( 471768 ) on Friday February 21, 2003 @09:55AM (#5351813)
    Check out the Backbone Map [2kweb.net]. Quite a bit of bandwidth goes through there. Three major metropolitan centers. Texas is like California, but without the insane high cost of living. Texas has no state income tax.
    • If all you care about are monetary issues, then Austin can be a decent place.

      Now if you care about being able to drive somewhere and not live in a shit hole state then Texas is not for you. Low cost of living yes...high quality of life no. The people that rank Austin as one of the best cities to live in never live there....strange. There is a reason living costs are so high in California and NYC...they are great places to live and lots to do. Life is not all about money.

      • Re:Texas (Score:1)

        by PD ( 9577 )
        I live in Austin and I can tell you that low cost of living is NOT a reason to move here. A tiny little house of about 1000 square feet will cost you a pile of money if it's located in a nice neighborhood in town. Even my average sized house in the Great Hills costs more than a 4000 square foot house in Michigan where I grew up.

        But if you want to live close enough to Austin there's plenty of little towns all around where you can get a nice house cheap.
      • This is more or less nonsense. Obviously, not every city is for every one.

        But I've lived in Silicon Valley and Austin, and Austin has a lot more to do than Silicon Valley. There is *nothing* to do at night in the valley without driving 50 miles to San Francisco. The only real advantage of the Valley is that Yosemite is 4 hours away, Big Sur is 2 or 3, and San Francisco is an hour away.

        Austin has more outdoor activities, better bars, more live music, and much friendlier, more interesting people.

    • Re:Texas (Score:4, Informative)

      by GoRK ( 10018 ) on Friday February 21, 2003 @01:05PM (#5353187) Homepage Journal
      Texas does; however, have a law that says they get to collect state sales tax on EVERY e-commerce transaction that's conducted on a server within its borders. Texas is also exempt from the current federal Internet sales tax moratorium. And, that lack of state income tax, well, you really pay for it with an 8.25% state sales tax (higher in some localities). Can you imagine making a resident of another state pay a sales tax rate that is double or triple what he'd pay in his own state?

      This is a *MAJOR* sticking point that is ignored by a lot of small companies that have webservers here and could easily get bit. The big companies HQ'd here -- Dell, for instance, do not keep servers within the state borders for this reason.

      [Source: Report of Texas Internet Tax Policy Working Group [state.tx.us]]

      • Re:Texas (Score:4, Funny)

        by GoRK ( 10018 ) on Friday February 21, 2003 @01:08PM (#5353226) Homepage Journal
        Also, as a followup, it's very interesting to note that Texas does not make this kind of assumption when ordering merchandise via mail-order. They do not collect sales tax on an interstate mail order, but they do on an interstate e-commerce transaction. It's totally fucking bogus.

      • Tennessee has similar sales tax rates and if the company has some form of physical presence in the state and the shipment goes to TN, the customer pays their local sales tax. Many places have warehouses here, so it's not uncommon to see sales tax added to web site orders. That's not too bad because often the merchandise will be delivered in a couple days while paying the standard ground rate.

        Personnally, I don't mind paying sales taxes, even at ~9% rates on food. It encourages limiting purchases to necessities and I don't have to report personal earnings to yet another govt entity.

  • Online Best Place tool (Score:4, Informative)

    by lwbecker2 ( 530894 ) on Friday February 21, 2003 @10:06AM (#5351859)
    A tool for finding the best place to live is online at BestPlaces.Net [bestplaces.net].

    There are two versions of the tool: short (15 categories) and long (40 categories).

    The tool has you rate different attributes in terms of "importance to you" and then provides a ranked list of places to live that meet your preferences.
    • The information at bestplaces.net is a little old. At the bottom of every page, it says "modified 3/29/01".

      Alot of things have changed in the last 2 years. Things may yet return to their 3/2001 levels, but be weary of any information that is not current.
  • The North East - Boston, NY, NJ, PA, all the way down to NC or around CALF/Nevada. You will find the most geeks, shops, eq etc in those areas.

    Pretty much pick the type of weather and culture you want and setup shop. I don't really know much about e-com laws and such - but they can't be that different... The only thing that I think you will run into is state sales tax - and they are ALL trying to get people to pay sales tax on internet purchased items anyway - sooner or later we will have to pay no matter where you live.

    Good luck in whatever you do,
    Duke

  • the one with the best weather (Score:5, Interesting)

    by avi33 ( 116048 ) on Friday February 21, 2003 @10:09AM (#5351879) Homepage
    hm. There are so many factors to consider, and your question doesn't offer many details.

    1. A cheap one - If you're starting a business from scratch, you probably want to conserve cash. As such, you may need to look for a cheap place to live...many states have them, but you can do your own homework to see what the cost of living is. The cheaper the area, the cheaper your legal/incidental expenses may be. However, this may affect your access to:

    2. Broadband - I don't think it matters what state you're in, you need to either be withing range (3 miles) of a CO or a cable ISP. You could be in the 'most wired state' and still be outside of range. Unless you go with satellite access, in which case, I think you need an extra phone line for uploads. Then you could probably work anywhere, except on really cloudy days.

    3. What kind of business? Are you going to be pounding the pavement looking for clients? In which case, you'd better be near lots of them, possibly offsetting point 1.

    4. I hear maryland is very business-friendly. You don't have to live there to register your business, and I think they make it quite easy to do via the web. If I'm not mistaken, they're somewhat lenient when it comes to business taxes, though you can find the other benefits by asking google [google.com].

    5. If this is really going to be a 'virtual business' then it shouldn't matter. Find somewhere where you like the weather or the nightlife or the mountains or the beach. In the long run, whether your (online) business succeeds or fails doesn't hinge on where it sits, it's on what you do with it. Though you may want to be within 50 miles of a decent job market in case one (or both) of you needs to get a real job...
    • Avoid Maryland! It is a UCITA state!

      http://www.acm.org/usacm/IP/ucita.states.htm [acm.org]


      Virginia is also a UCITA state.

      UCITA is bad news for anyone remotely connected to the software industry, if you haven't already heard.

      California is great but it has high taxes and its legal climate is anti-business, not to mention the huge cost of living. I currently live in San Jose, and if worse comes to worst, I will move to probably Nevada, Arizona, or New Mexico. I'd prefer Vermont, for many things including getting to vote for Senator Leahy, but my partner hates the snow :)
  • It has a small but growing tech presence.

    It has no state sales tax (ie, no internet sales tax).

    The area is well-covered broadband-wise. Manchester airport is easy to get to and non-congested (unlike Boston's Logan), and within 30 minutes of just about any spot in the area.

  • Stay away from Kansas.

    Nebraska (Lincoln in particular) might be what you're looking for.
    • This sounds like a completely uninformed opinion. Nebraska is much more rural than Kansas; if you prefer this, go to Nebraska. However:

      The three principal universities have Internet2 and there is a LUG in each of the university cities (Wichita [aclug.org], Lawrence [kulua.org], Manhattan [k-slug.org]). The University of Kansas is one of the top ten party schools (KU [snopes.com]) and Lawrence is close to Kansas City. Wichita [wichita.gov] is the industrial city in the state and has low housing costs [bomawichita.com].

      "Real northern California" (i.e. Humboldt county [humboldtcounty.com]) is beautiful and cheaper than much of California. I think Nevada "sucks", but this is my opinion and I know other people like it. Everyone has to make her/his own decision. Just realize that your opinion is exactly that and nothing more.
      • Ahh, however:
        Omaha - UNO, (Bellevue) Bellevue University, and SAC/STRATCOM. They have the military based backbone up there.
        Lincoln - UNL, a hearty party school that is just as good as KU (KU got better points since it is going back to semi-wet campus, but only before home football games)
        Kearny - UNK. There is also Peru state college which provides decent service.

        In rebuttal for Kansas, Topeka (state capitol) has horrible internet coverage and is very anti-business. Manhattan is unfriendly to people who are not extremely gung-ho about K-State (There is just an attitude they have). Wichita I have no experience with, so I will take your word for it. Mead, and the southwest area, however, is much worse than the western rural parts of Nebraska (Dix , NE beats out Meade, KS). Lawrence is great for businesses, (Shop Local, Shop Lawrence is STILL stuck in my head) especially small businesses. For an internet presence, though it might not be the best, but it is a good commute to Overland Park, KS (The tech-end of Kansas City). Lawrence provides cheaper housing than KC.
        It might have not been a thought-out reply, but it was simply my opinion. I could argue it until I'm blue in the face, but in the end I would still rather be working in Denver.
  • For no other reason than their motto: Live free or die.

    Alternatively, Vermont, where they have no concealed weapons permits. Instead, everyone has the implicit right to carry.

    • I don't know if this is still true, but in Vermont you weren't required to have auto insurance as long as you had a clean driving record. I guess that was proof enough that you didn't need it, and therefore shouldn't be required to have it!
  • Lots of fat pipes here and cost of living is great.

  • NOT Utah! (Score:3, Funny)

    by swillden ( 191260 ) <shawn-ds@willden.org> on Friday February 21, 2003 @10:44AM (#5352103) Journal

    Taxes are astronomical; the population is inbred, mostly illiterate, extremely lazy and very hostile towards technology; the mountains are ugly; the skiing sucks (ditto the snowmobiling, snowshoeing, mountain biking, camping, hiking, fishing, rock climbing, hang gliding, water skiing, etc. They all suck. Bad. Did I mention they suck? I'm really going to hate snowboarding tomorrow after the load of fresh powder we're supposed to get tonight); DSL and cable modems are unheard of (we just got 56kbps!); the Mormons will steal your wife and force her into a polygamous marriage with some bearded, pot-bellied 90 year-old who already has a harem of 25, every one of them barefoot and pregnant; there is *no* alcohol anywhere in the state, so don't even think of getting a drink; the legislature recently had a special session so they could pass a law legalizing marriages between first cousins... you get the idea -- NOT a place you want to try to start a business, build a home or raise a family. Especially not build a home. Damned housing prices going through the roof... can't hardly even find a five-acre building lot anymore.

    Besides, we've got enough problems with all of the refugees from California flooding our lovely^H^H^H^H^H^H horrible state... the LAST thing we want is more people.

    • Besides, we've got enough problems with all of the refugees from California flooding our lovely^H^H^H^H^H^H horrible state... the LAST thing we want is more people.

      They're not refugees, they're returning home after riding the dotcom wave over here :)

      It's true everyone:

      California is cold and foggy, there are no jobs, everyone sips Starbucks Lattes while chatting on their cell phone, the trees are all cut down, our state is going bankrupt, your kid will be addicted to marijuana by age 12, and a long haired cult-leader from the Peoples Republic of Berkeley will command his followers set fire to your SUV.

      Please go back home.
  • We were wondering if slashdotters could offer some advice on which state is the best to start an e-commerce business in.

    It depends what you mean by "in". Delaware is probably the most company-friendly state. There are plenty of companies that are physically headquartered in Manhattan but legally based in Delaware, physically existing there only as one of hundreds of brass plaques on the front of lawyer's offices.

    The beauty of the internet is that when location becomes irrelevant to where you do business, it also becomes the most important thing - because now you can choose anywhere. So, head for somwhere that the taxes are low and the people are friendly, like New Hampshire, or where there's a nascent nigh-tech hub, like out in Western Mass.
    • Delaware has always been very, um, freewheeling when it comes to business regulation, so over the years it has gotten the reputation as a haven for sleazy operators. For many people, a Delaware incorporation is a red flag. "Oh, I see, a Delaware corporation. Well, it figures..."

      I don't think I'd want a Delaware address for my online business.

  • It has to be right for you. (Score:3, Interesting)

    by madstork2000 ( 143169 ) on Friday February 21, 2003 @11:00AM (#5352247) Homepage
    The trouble with this question is you're asking small business owners/employees, who've probably only been involved in one state. It is hard to be objective with such limited experience.

    I suggest looking first at where you want to live in terms of climate, urban / rural, proximity to family,(it ay not be important now, but might be in a few years when you have kids). I'msure you probably have someother "intangibles", preferences as to where you live that are subjective (I personally swore I would never live in Ohio).

    Anyway, once you narrow the list, then start investigating the business climate. I have to believe that for small businesses the tax advantages of one state over another are mimimal. since there are so many other factors involved in starting a business, since the tax laws will depend on the organization structure of the business (LLC, SubChapter S, Sole proprietor, partnership, etc)

    That said,I like Michigan, I have operated a home based Internet businesses for 5 years, and spent time in Kalamazoo, Ann Arbor, Grand Rapids, Traverse City and Clinton twp.

    My family's primary concern was staying close to extended family. Pretty much everywhere we've been has had broadband.

    I have a client who moved his on-line sales operation to Michigan's Upper Pennisula, and he seems to like it.

    My advise is: this is a big decision, and involves a lot of variables, you need to look at everything, and make the choice based on the variables that are most important to your long term happiness.
    -ms2k
  • Which has the most e-commerce friendly/unfriendly laws (taxation, copyright, spam, privacy)...

    By "e-commerce friendly", do you mean tolerant of spam and reselling customer information or the opposite? Normally I'd assume the latter (since that what it means) but from your tone and where you've chosen to ask, I wonder if you mean "customer friendly"instead.

    It makes a difference! ;-)

    PS: Stay away from Massachusetts, unless you're eager for the combination of Swedish taxes and Saudi liquor laws. And like someone else said, avoid Utah like the plague. You don't want any part of beautiful scenery, phenomenal outdoor sports and clean, safe courteous cities. At least not until I get myself back there first.

  • What ever you do... do *not* come to Seattle. Seattle has this sickening quality that draws people here and then keeps them, even as they complain bitterly about how shitty it is. I know... I have lived all over the world and I *still* keep ending up back in Seattle. This last time has been 2 years. Two years in a city where IT market took a *mighty* dump... so mighty, in fact, that it is still clogging the toilet bowl. The stench is incredible. I am not being sensationalist... the IT market in Seattle is pitiful... Okay, maybe the part about the IT market here literally being a turd is a bit sensationalist, but the rest is true!

    ;-)

  • WA - no income tax, 8% sales tax
    OR - income tax, no sales tax
    • Forget Oregon. Unemployment is the highest in the country. Doonesbury is doing a series [oregonlive.com] next week on the financial problems for Oregon's schools. Teachers in Portland are threatening to strike because of the pay cuts being proposed.

      The high-tech bust has left many people unemployed, and for many of those, their unemployment compensation including two extensions has run out. The local (Portland) rag runs periodic articles on how bad things are and what people are doing about it. Many have moved out of state. Last Sunday there was this article [oregonlive.com] on high tech workers trying to get jobs waiting tables - and being turned down. When employers advertise jobs they are swamped with resumes; most don't even bother to send out rejection notices anymore.

      Legislative gridlock is preventing any meaningful action, and the reforms that have been sent to the voters have all been turned down because the Legislature has no credibility.
      • Well, he's talking about opening his own business. Oregon is still pretty attractive for low cost of living, great outdoors and lack of sales tax. I believe the broadband within Portland or Salem areas is not a problem either.
  • Stay away from California. We are all full over here. It's really expensive to live here and, contrary to what people will tell you, it does rain here.
  • Has everything you want, plus (1) easy to bribe officials, (2) cheap marijuana, and (3) plenty of friendly Mexicans.
  • Small Business Survival Committee's seventh annual Small Business Survival Index 2002 [sbsc.org]: Ranking the Policy Environment for Entrepreneurship Across the Nation.
  • Comment removed based on user account deletion
    • don't forget dealing with the fucking crazy drivers who come from all over the world to visit Mickey Mouse and his buddies. every region has a certain driving style.....Orlando has it all, including hot humid summers with lightning capitol Tampa Bay a short drive away and lots of bugs and other crap.

      did my time at Naval Training Base Nuke School there . the only cool thing being so close to Cocoa Beach and Cape Canaveral. Watching a shuttle take off after dark is THE coolest thing! especially when the sunset is dark red and there are some clouds. you can see the thing light up the whole sky. awesome! as for the rest of the time, you heard my spiel.
  • Let me start off by saying that is a sign of a very bad economy that so many of the responses say "don't bother with region X . . ." We are really and truly fucked economically, and we all better learn to sell dumpster-dived trash on ebay.

    With that cheerful intro, I'll say that the specific circumstances you find matter more than the general state or region. Sure, one state may have a sales tax 2% higer than another, but a sweet deal on rental space will more than make up the difference. In fact, if you find living space a walkable distance from a small, cheap office just saving on gas may make more difference. You have to have an idea of your cash resources and burn rate and look for a place to maximize them.

    I would just search for cities where the culture felt right to you. Culture varies as much within a region as it does from region to region. A small college town in the south may be more intellectual and tolerant than South Boston, Massachusetts. (Ok, maybe Nazi Germany was more tolerant than S.B., but you get my point.)

    When you arrive in an area and think "I might be able to live here a couple of years" start looking for that specific sweet deal on space and infrastructure that will stretch your budget out another year. The trailer park with OC3 available, for example.

    And then to actually give you some real advice rather than just "look for a good place son", if it were me I'd focus on a cheap, low class, dangerous part of Houston, Dallas, Austin, or San Antonio, which was walking distance from a cheap-ass industrial park and served by Grande Communications for cable/telephone. ( I'd definitely use Grande for personal telephone, but perhaps not for running a business broadband. Their availability means you can bargin more with the other providers.)

  • this guys post at http://ask.slashdot.org/comments.pl?sid=54631&cid= 5354453 has the best info, I just read the pdf he links to, gives ya a lot of the info you want. I will also heartily recommend a book by Joel Skousen called "Strategic Relocation", it's a detailed analysis of all of the US covering just a ton of different features.
  • Anchorage Alaska. Pop ~250,000.Lots of bandwidth. moderate cost of living. No state sales tax. Coolness factor. And if you like the outdoors...

Slashdot Top Deals

HELP!!!! I'm being held prisoner in /usr/games/lib!

Close