Tax Free Zones...

[LazyBoy]

I know that most (if not all) indian reservations are free of federal taxes, since they are their own nation. I was also told (though I can't confirm this) that there are some tax free zones (they were referred to as free enterprise zones, but that didn't seem right, I could be wrong though) near the Dallas Intl Airport....

Anyone know is this information is legit, and/or where I could find more such locations?

I ask because a friend has talked about starting a business and he heard about them, and had the idea that he *may* be able to save $$$ by locating his business in one of these areas, if they do so exist. He asked me because I'm a senior in business school, but sadly enough, I didn't have any answers for him.....was hoping someone here might

Thanks,

-Will

[The_Jazz]

There are a variety of ways that different municipalities spin this, so you need to be more specific about exactly what your friend is after. Some zones are only for manufacturers or only a single manufacturer; it's rare that a zone applies to all businesses that set up shop there.

Also, start-up operations rarely have enough cash flow for the first two years for taxes to be a major worry. None of my start-ups paid any taxes for the first few years. Only one ever owed anything, although sales tax was a hassle (but that's a pass-through anyway).

More information would be helpful.

[LazyBoy]

My apologies, but thanks for the reply, I'll have to give him a call here in a bit and try to get more specifics


-Will