A companys decision on where to locate its corporate headquarters or factory operations should be carefully evaluated. Location can be an important factor when starting a brand-new business, particularly in a lower-tax state. While lower taxes are appealing, there are many other factors a company should consider, such as business conditions and the economy. What is the states unemployment rate? How do sales and local taxes compare to other states? Is the cost of living reasonable? Would the business be able to attract qualified employees? For degree-level positions, what is the percentage of people with college degrees? According to an article on Forbes.com, Indiana ranks the #1 state for financial business success. The state offers a flat-income tax rate for individuals of only 3.23%, while the cost of living is 15% lower than the national average and unemployment is lower than average at only 2.8%. (Forbes Advisor, 2022). Additionally, the state offers a lower corporate state income tax rate of only 4.9%. For comparison purposes, New Jersey has the highest corporate state income tax rate of 11.5%, while Ohio has no corporate state income tax. (Tax Foundation, 2023). However, for existing businesses considering relocating to a lower-tax state, there are additional costs and challenges to consider to not negatively impact the companys financial position, its shareholders, customers, clients, or employees. While the costs associated with a move could be significant, long-term overhead costs such as leases, utilities, and property taxes could also increase. Other factors to consider are business conditions, the economy, unemployment rates, and attracting qualified employees. Would current employees want to relocate? If so, what would be the company costs associated with providing employee moving assistance? If not, what would be the costs associated with hiring and training new talent to fill open positions? What does the market look like? Is the cost of living higher and could the business sustain paying higher employee wages? How will the move impact customers or clients? While lower income taxes could be an incentive to relocate a business, it should not be the only motivating factor. Careful consideration should be given to all the different components involved in the relocation of a business