ncome taxes for a company should be one factor to consider when decisions about where to relocate or start a business are questioned. There are multiple other factors that should be considered that as well can impact income taxes and financial statements. Below are a few items that should also be considered:

Regulations that are in place where the location of the business will be

Resources available to support business needs in reference to raw materials and transportation.

Accessibility to different markets to transport goods that are manufactured.

In addition, what is the cost of living for the employees, and can the company keep up with the necessary wages for employees to be attractive to the market for work?

We recently saw Tesla move its corporate headquarters from California to Texas. In an article it is stated that Elon Musk moved the headquarters due to employees having a difficult time affording houses in the Bay Area of California, causing a farther commute (Rapier, G. June 10, 2023). The decisions that Elon Musk made were looking at the employees and availability of quality employees wanting to make a long commute. Tesla would have a higher payroll to entice employees to work for them.

Elon Musk, according to the same article, was concerned about the regulations surrounding the pandemic shelter-in-place orders. Also stated regarding taxes Elon Musk by moving to Texas potentially will save an estimated $2.5 billion in capital gains taxes.

Taxes are an important part of deciding where to locate a business but should only be part of the big picture for the location. Companies that do not consider all the parts of the area may see increased taxes from regulations, greater pay to attract employees and increase costs in resources needed due to freight and availability in the market. Infrastructure at the location is important, an airport sufficient to handle more executives in and out of the city is critical.

In summary, income taxes are only one factor when considering where to locate. The implications that other factors mentioned could have on the company are just as important and can affect the income taxes of the company. Income taxes should not be the only factor in a companys decision.