State tax structures are critical for states to support spending in schools, roads, and programs that support those in need. The way a state prevents budget deficits and grows its rainy day funds through fiscal policies impacts citizens in a myriad of ways. This research focuses on how state tax structures increase or decrease the likelihood of an individual being a new business owner in that tax environment. This topic is increasingly important as entrepreneurial activity is seen as a critical element in boosting economic growth. This study explores the relationship between the top marginal corporate and income state tax rates and entrepreneurial activity utilizing panel data from 50 states from 1996 to 2023. The study employs a limited probability model controlling for fixed effects at the year, state, and survey participant level while clustering for standard errors at the state and survey participant level. The study identified high statistical significance but a very small effect between tax structures with higher personal income tax rates and the probability of an individual being an entrepreneur. There was no statistically significant relationship between higher corporate income tax rates and the probability of an individual being a new business owner.