Small Business Tax Rankings Released

The “Small Business Tax Index 2017: Best to Worst State Tax Systems for Entrepreneurship and Small Business” ranks the 50 states according to the costs of their tax systems for entrepreneurship and small business.

View an interactive U.S. map of “Small Business Tax Index 2017” results.

Raymond J. Keating, chief economist for the Small Business & Entrepreneurship (SBE) Council and author of the report, said: “While there is much discussion in Congress and the Trump administration about making the federal tax system more competitive, these issues obviously reach down to state and local levels as well. That’s the focus of SBE Council’s ‘Small Business Tax Index 2017.’ Specifically, which states are among the least burdensome in terms of taxes, and which inflict the weightiest burdens on small businesses?”

The SBE Council pulls together 26 different tax measures, and combines those into one tax score that allows the 50 states to be compared and ranked. Among the taxes included are income, capital gains, property, death, unemployment, and various consumption-based taxes, including state gas and diesel levies.

According to the “Small Business Tax Index 2017,” the 10 best state tax systems are: 1) Nevada, 2) Texas, 3) South Dakota, 4) Wyoming, 5) Washington, 6) Florida, 7) Alabama, 8) Ohio, 9) North Carolina, and 10) Colorado.

The bottom 10 include: 41) Connecticut, 42) Oregon, 43) New York, 44) Vermont, 45) Hawaii, 46) Iowa, 47) Minnesota, 48) Maine, 49) New Jersey, and 50) California.

Since last year’s report, several states have made significant tax changes.

Five states – Arizona, Indiana, New Hampshire, New Mexico, and North Carolina – have improved their tax climates by reducing their personal or corporate income tax rates. Other states – such as New Mexico and Tennessee – have scheduled changes that will improve their tax climates for entrepreneurship, business and investment in coming years. Unfortunately, all of the news is not good. Kansas, Maine and New York have made tax changes that are negatives.

2015 Best Places to Work Rankings Announced

KRH26117Hoosier companies from throughout the state with stellar workplace practices were recognized Thursday at the JW Marriott in downtown Indianapolis. Before a crowd of 1,200, the Indiana Chamber of Commerce unveiled rankings for the 100 companies that made the 2015 Best Places to Work in Indiana list (released in February).

Winners were selected in four categories. Taking top honors:

  • Small companies’ category (between 15 and 74 U.S. employees): E-gineering, a technology consulting firm on the northeast side of Indianapolis
  • Medium companies’ category (between 75 and 249 U.S. employees): Project Lead The Way, Inc., a non-profit education organization headquartered in Indianapolis
  • Large companies’ category (between 250 and 999 U.S. employees): Sikich LLP of Indianapolis, an accounting, advisory, technology and managed services group
  • Major companies’ category (1,000 or more U.S. employees): Edward Jones, an investment firm with 457 branch offices throughout the state

For Sikich this marks the third straight year to finish number one. It’s also a return to the top spot for both Edwards Jones (last time was 2008) and E-gineering (2011).

“These four outstanding companies embody what strong workplaces should look like – they are rooted in respect, teamwork and good communication, and, where possible, promote professional growth,” states Indiana Chamber President Kevin Brinegar.

“All the organizations honored tonight are exemplary employers that foster a positive and productive work environment. They understand that truly valuing employees goes hand-in-hand with the success of the business.”

At the dinner, presented in partnership with Hylant, representatives from all designated companies received Best Places to Work awards of excellence.

Organizations on the 2015 list that have displayed sustained excellence during the program’s 10-year history received additional recognition with Best Places to Work in Indiana Hall of Fame and Pinnacle designations.

Hall of Fame organizations are those that have been named a Best Place to Work in Indiana at least two-thirds of the time in the program’s history; a total of 15 companies on the 2015 list meet that criteria. Two organizations – Edward Jones and Katz, Sapper & Miller – have made the Best Places to Work list every year.

The Pinnacle recognition is reserved for those that have finished first in their category three or more times in a five-year period. The four Pinnacle companies are Microsoft (first in the major employer category in 2013-2014 and in the large category in 2011-2012), Edward Jones (tops in the large employer category from 2006-2008), Sikich LLP (first in the large employer category from 2013-2015) and Hollingsworth & Zivitz (atop the small employer category from 2012-2014).

More information about the Best Places to Work companies is available via a special section of the May/June issue of the Indiana Chamber’s BizVoice® magazine, a statewide publication released tonight and accessible online at www.bizvoicemagazine.com.

Other program partners are Inside INdiana Business with Gerry Dick, the Best Companies Group, Indiana Economic Development Corporation, Indiana State Council of SHRM and the Wellness Council of Indiana.

In addition to Hylant’s presenting sponsorship, Elements Financial is the event’s reception sponsor. Best Places to Work in Indiana is also sponsored by: Moser Consulting, Inc.; Holiday World & Splashin’ Safari; ADVISA; Centier Bank; Comcast; Conner Insurance; DTZ; Eaton Corporation; Goelzer Investment Management; Smithville Communications, Inc.; and Trilogy Health Services, LLC.

The Best Places organizations were determined through employer reports and comprehensive employee surveys. The Best Companies Group, which handled the selection process, oversees similar programs in 26 other states.

All companies that participated in the 2015 Best Places to Work program receive an in-depth evaluation identifying strengths and weaknesses according to their employees. In turn, this report can be used in developing or enhancing employee retention and recruitment programs.

For more information on the Indiana Chamber’s Best Places to Work program, go to www.bestplacestoworkIN.com.

Interactive Intelligence Gets National Recognition from Forbes

Those in the Indianapolis area have likely heard of Interactive Intelligence by now. Founded in 1994, the company has emerged to become one of the world’s leaders in business communication systems. And now, behold this prestigious honor, as Forbes has ranked the company eighth among America’s best small companies:

Interactive Intelligence Group Inc. (Nasdaq: ININ), a global provider of unified IP business communications solutions, has been ranked No. 8 by Forbes Magazine among America’s Best Small Companies.
 
This is the second year in a row Interactive Intelligence has made the Forbes list, which is composed of the 100 best-performing American public companies with under $1 billion in revenue. Last year Forbes ranked Interactive Intelligence 26th on its list.
 
The Forbes America’s Best Small Companies ranking features firms with remarkable sales and earnings growth in a host of industries, according to an article in the magazine titled “The Top 20 Small Public Companies In America.”
 
Interactive Intelligence had sales of $192 million for the 12-month evaluation period ending June 30, 2011, with 20 percent sales growth and a 31 percent return on equity.
 
Interactive Intelligence was also included on Forbes list of 15 Small Company Stocks You Should Own Now.
 
“Our inclusion for the second year running among Forbes Top 20 Small Public Companies in America affirms our continued customer-focused approach with an emphasis on long-term value,” said Interactive Intelligence founder and CEO, Dr. Donald E. Brown. “This approach has spurred significant demand for our cloud-based contact center offering and it’s fueling an ever-increasing number of sales to the very largest global enterprises.”
 
Interactive Intelligence develops business communications software that provides contact center automation and unified communications functionality for mid-size to large organizations. The company’s software can be deployed on-premise or in the cloud, and is ideal for all verticals, including financial services, insurance, teleservices, and credit and collections.
 
“With exciting new development efforts underway that marry social media with mobile technologies to yet again transform customer service, we look forward to another opportunity next year to make Forbes most worthy list of best American companies,” Brown concluded.
 
Candidates for Forbes Magazine’s America’s Best Small Companies ranking must have been publicly traded for at least a year, generate annual revenue between $5 million and $1 billion, and boast a stock price no lower than $5 a share. The rankings are based on earnings growth, sales growth, and return on equity in the past 12 months and over five years. Stock performance versus each company’s peer group counted as well. Shares of last year’s members outpaced the Russell 2000 small-company index by an average of 10 percentage points.
 
More information about America’s Best Small Companies can be found in the November issue of Forbes Magazine, or on its website at: http://www.forbes.com/sites/kurtbadenhausen/2011/10/19/the-top-20-small-public-companies-in-america/.

Looking Behind the Ranking Numbers

Two pieces of seemingly conflicting news that came out late last week:

Indiana ranks sixth overall and first in the Midwest on Area Development magazine’s list of “Top States for Doing Business,” but Forbes placed the state 29th on its “Best States for Business and Careers” list.

These are just two of the numerous state rankings that are published throughout the year, but why is Indiana ranked so highly by one publication while falling below the middle of the pack in another?

A little digging reveals that the way the data is compiled varies extensively. According to the Area Development web site, the magazine conducted a “flash survey” of a select group of respected consultants who work with a nationwide client base. The consultants were asked to name their top 10 state choices in eight selection criteria, which include lowest business costs, most business-friendly and corporate tax environment, to name a few. All of the criteria were given the same weighting. Find the complete article and rankings here.

For the Forbes list, the ranking measures six categories (none of which were the same as the Area Development list, with the exception of business costs). Then, 33 points of data were factored in to determine the rankings in the six main areas, with weight given to business costs. The data came from 10 sources (such as the Census Bureau, FBI, Tax Foundation, Department of Education) with research firm Moody’s Economy.com as the most-utilized resource. Find the complete article and rankings here.

Already, these are two dramatically dissimilar methods for calculating rankings. A little farther down in the Area Development article, the writer even admits that if the criteria were regrouped into three categories, the rankings would see significant change.

Just keep in mind that the way the data is interpreted is often subjective and that the rankings one sees may be utilizing very different measures.

The good news, however, is that in general Indiana is ranked very highly and the state boasts a business-friendly environment – evident by the new and expanding businesses around the state despite the difficult economic times. The Indiana Chamber will, of course, continue to be a key player in helping ensure the state’s business success.

IEDC: National Media Lauding Indiana’s Business Climate

In a recent web article from the Indiana Economic Development Corporation (IEDC), it seems many national news media and sources are looking at Indiana as a model for how to take care of business, so to speak:

National news broadcaster CNBC listed the Hoosier state as the “Most Improved State for Business” in its 2008 survey of states. Indiana ranked the best in the Midwest and third in the nation for Business Friendliness in the survey, the best in history for the state and far better than the rest of the industrial Midwest.

Forbes magazine also provided Indiana acclaim by rating the state’s business tax climate as the best in the Midwest and sixth lowest cost of doing business nationally in 2008.

Indiana’s low cost of doing business and tax-friendly environment scored accolades from a Chief Executive magazine survey of the nation’s top CEOs. The magazine’s fourth annual “Best & Worst States” survey polled 605 top executives in early 2008 who listed Indiana as the best place in the Midwest for business, scoring an eighth place national finish and edging out neighboring states by more than 15 places on the survey.

To view all of the rankings, read the piece on IEDC’s web site (PDF).