Just this month, the Small Business & Entrepreneurship Council (SBE Council) released its 2011 rankings of all 50 states and the District of Columbia in terms of their favorability toward entrepreneurship and small business with regard to taxation. Comprising 18 different tax measures within each state such as income, capital gains and unemployment, to name only a few, the resulting overall tax score allows for a reasonable “apples-to-apples” comparison.

According to the SBE Council’s assessment, the five most favorable tax systems for business ownership and investment are: 1) South Dakota; 2) Texas; 3) Nevada; 4) Wyoming; and 5) Washington. The five worst are: 1) District of Columbia; 2) Minnesota; 3) New Jersey; 4) New York; and 5) Iowa.

To access the full report highlighting the rankings and how they were done, click on “Business Tax Index 2011” now. The SBE Council also provides a fully interactive state map that makes finding out where your state falls easy and fun. You can also check out entrepreneurial opportunities here.