Choosing the best state based on tax considerations oftentimes reduces tax bill by at least 5% of your net profits. Now, lets say you are making 2M per year. 5% = 100K, which is more than enough to hire another programmer!
I would rather start up in a nice city andy worry about taxes once I'm making 2M a year in profits than risking to live somewhere less enjoyable without knowing if I will ever have to pay taxes anyway.
You don't have to choose between a nice place and low taxes. high taxes and regulations can give you cities like detroit and chicago while low taxes and regulation can give you cities like hong kong, monaco, panama city, etc.
In fact, the point of my comment is that the business could be located in a low tax jurisdiction, resulting in more funds flowing to the bottom line, while the owners and employees could be located somewhere they like, even a high tax jurisdiction if they wanted.