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There are many reasons why Californian businesses are expanding to Tennessee and you are about to see some of them. But before that, we wanted to tell you that in the last couple of years, many Californian families and businesses have moved to Tennessee and that has become a real trend. The main reason is obviously affordability (we will talk more about that later in the text) but obviously, that’s not the only reason. There are even more affordable places in the USA. State income tax (or the lack thereof) is also another reason but that’s not all. Keep reading and we will also show you who can help you and your business along the way in case you decide that this could be a good move for your business as well.
This state is business-friendly
This is the number one reason why Californian businesses are expanding to Tennessee. So, what exactly does it mean if a state is deemed “business-friendly?” What this means is that it is simpler to start a firm, expand that business, and keep it going in the long run since favorable conditions, regulations, and policies are in place. This all-encompassing term, of course, leaves room for nuanced considerations based on the nature of the enterprise being planned.
There could be personal reasons for wanting to establish a company in Tennessee, such as a move to be closer to family. Perhaps you want to move because of business considerations, such as the fact that your company’s growth or profits are being stifled by the current state of affairs. Companies frequently move their operations to another state in search of better conditions. Whatever your reasons may be for seriously considering Tennessee as a location for your business, you owe it to your business to do your research before making a final decision. Vegas is also a good choice for expanding a business so make sure to explore all your options.
Affordability and taxes
When compared to the national average, Tennessee’s cost of living is 18.9 percent lower. That is making it one of the most reasonably priced states. Many businesses can’t afford California prices. The bad news is that prices in California will only grow. But Tennessee is different. That is also a reason why so many families are moving here. Another thing we mentioned earlier is taxes. Something that is a big concern for every entrepreneur. Luckily, there is no state income tax in Tennessee, saving Californians an additional 12% per year. Buying a property in Nashville for example where the median value of the average commercial real estate is $400,000 lower than in California, might help business owners get the most out of the equity they build when they sell their current place of business. If you are renting – it’s even easier.
Yes, taxes are a huge factor!
That’s right, you read that correctly. Personal income tax rates in Tennessee are 0%. When relocating from California to Tennessee, a business can improve its net income by as much as 12 percent. The money you make from this will compound over time, giving you a substantial financial advantage. You can invest it in your business. Also, with only $913, this state has the lowest per-person debt in all of America.
Owners of businesses in Tennessee are exempt from paying state income tax on their profits. This could wind up saving you a ton of cash, depending on the amount of money you make as the head of the company. It has been estimated that by moving to a state which does not impose an income tax, you may save over $2,000. Does it surprise then that this is one of the reasons why Californian businesses are expanding to Tennessee?
Growth and Nashville
Here’s a cool fact about Nashville, which we brought up because it’s one of the top places in the country for startup businesses. Forbes ranks Nashville as the fourth-best location for jobs and the third-best “boom town” in the United States. Nashville is one of the few cities in the United States with a population of over 1 million to rank first in job growth year after year, and it is also one of the top five best places in which to start a business, according to Inc. Nashville’s booming economy is being bolstered by growing property prices, an expanding population, and no indications of slowing down in the foreseeable future. If you decide to move or expand your business to any Tennessee city, you should call spydermoving.com to help you with your business relocation.
This is a much better place for the ones in the healthcare industry
Middle Tennessee is investing a lot in the healthcare system and this is the perfect time to join in. In fact, healthcare is currently the biggest industry in this state. If you decide to move your healthcare-related business (or medical equipment) you can also expect some benefits that you won’t get in California. That is always a bonus.
California is becoming too competitive
This is a problem in two states. California and New York. We are talking especially about cities like LA, San Francisco, and NYC of course. People from all over the world are rushing to start a business there. The more businesses open the less you are likely to succeed. Too much competition can be especially hard for people in the food industry.
The number of businesses opening right now in California can be intimidating for many and that’s why decide to try their luck somewhere else. Tennessee is a great place. As you can see, there are numerous reasons why Californian businesses are expanding to Tennessee, and even moving completely your business there can be a good thing. Do some more research and then you can make an educated choice. Good luck!