In addition to my last article, Best Countries to Start a Business, here’s a list of the best states for startups which is also from Fortune Small Business. You can read the full article here, but I have provided summaries for the top 5 below:

1. South Dakota

No tax on personal income, capital gains or corporate income. Little crime and low energy costs.

2. Nevada

No tax on personal income, capital gains or corporate income and low property taxes. However, consumption and gas taxes are one of the highest in the nation.

3. Wyoming

No tax on personal income, capital gains, corporate income or capital gains. Cheap electric utility costs and gas taxes, but high in property and consumption-based taxes.

4. Washington

No tax on personal or corporate income and low electricity costs, but the state has high gas taxes.

5. Florida

No tax on personal income with the highest percentage increase in government spending (good for entrepreneurs!)

6. Michigan

7. Texas

8. South Carolina

9. Virgina

10. Alabama

I have been looking everywhere to find a similar list for Canadian cities with no luck. Does anyone out there have a list?

- Peter Kao