The owner of Jimmy John’s isn’t the brightest bulb on the tree.
He’s running a franchise company with plenty of revenue, but few expenses. He shouldn’t be looking to Florida, which will levy a 5.5% tax on corporate income. That’s lower than Illinois’ new 9.5% rate, but he can do better. He also shouldn’t be looking to Indiana, which he has talked about, as their tax rate is 8.5%. That isn’t much better than Illinois’, and IF (huge if) Illinois’ tax law doesn’t change, Illinois will revert to a lower tax rate than Indiana in 2015. No way does he recover moving expenses if that happens.
If he wants to move, he needs to find a state with a corporate tax structure that is kind to his sort of business. IMHO, his best choices are:
1) South Dakota - 0% corporate tax
3) Wyoming - 0% corporate tax
4) Ohio - 0.26% tax on gross receipts
5) Texas - 1.0% tax on gross receipts
“The owner of Jimmy John’s isn’t the brightest bulb on the tree.”
No, he’s not. And he’s widely considered to be a pretty vile human being in and around Champaign-Urbana.
He moved his family to Florida a while ago, making the decision to move before the tax hike, and had planned to commute to C-U for work.
Great Points