100 Best Places to Live & Launch

Lately a lot of my friends are starting businesses in my small town of Sioux Falls, SD. Then today I see that Sioux Falls is ranked #45 on a list by the CNN Money as one of the 100 best places to live and launch a new business.

What makes Sioux Falls so popular? First is the wonderfully low taxes. There are no state corporate or personal income taxes, and no personal property, inheritance or inventory taxes. Sales tax is just under 6%, and the total of taxes residents pay is among the lowest in the country.

The second reason is the low cost of startup. It costs an estimated 45% less to open a business here than in New York.

Having launched a business in London, I realize just how powerful this can be for competitive pricing. It's far more cost effective to hire someone in Sioux Falls than it is on one of the coasts.

The greatest drawback listed was that Sioux Falls is "a long drive from major cities." And with the airport dropping flights, it's getting harder to get around. So winning those top clients outside of the region is a lot trickier.

No. 1 on the list was Bellevue, Wash. Sioux Falls ranked between Oro Valley, Ariz. and Madison, Wis.