mattb - 8:41 pm on Oct 20, 2008 (gmt 0)

I can comment on KY taxes and laws.

KY taxes undepreciated assests such as equipment. However inventory classified as "in-transit" is excluded from this tax. This is extremely important if you carry a large amount of inventory at the end of the year.

S Corps in KY were taxed as pass-through entities (i.e. owners pay taxes on all profit at the personal level. This is the same as federal.) KY changed this two years ago and started collecting payments from businesses. Then they changed it again last year to only collect a small amount from businesses. We are now mostly pass through again. If you live in KY it doesn't matter, you pay tax either way. If you live outside the state then you probably pay in your home state and this would be important to you.

Generally KY likes distribution centers and has provided incentives / tax breaks in the past to attract them.