Face facts, as a friend used to say, your company will probably fail before it makes enough money to pay significant taxes.
You're correct, but that's all the more reason not to move to a crazy expensive city like SF from wherever you are in order to start your (likely to fail) company. What I was saying is that if you feel physical proximity to the Valley is necessary and you are planning to relocate anyway, then Reno is probably the ideal choice. If you are successful, the upside is dramatically higher because there are no state taxes on your success. If you fail, the downside isn't as bad because your expenses are dramatically lower. You also have a higher chance at success if you aren't burning through your startup capital on monstrous expenses associated with being in the Valley.
A longer runway is, indeed, a very good reason for doing a startup in a low cost of living area, assuming your runway is primarily limited by cost of living expenses, which it often is.
You're correct, but that's all the more reason not to move to a crazy expensive city like SF from wherever you are in order to start your (likely to fail) company. What I was saying is that if you feel physical proximity to the Valley is necessary and you are planning to relocate anyway, then Reno is probably the ideal choice. If you are successful, the upside is dramatically higher because there are no state taxes on your success. If you fail, the downside isn't as bad because your expenses are dramatically lower. You also have a higher chance at success if you aren't burning through your startup capital on monstrous expenses associated with being in the Valley.