A Limited Liability Company (LLC) is a logical business structure for many different types of organizations. If you are an entrepreneur or considering starting your own business, it is in your best interests to understand the positives and drawbacks to start an LLC. When in the early, planning stages of launching your venture, there is a lot of preliminary groundwork to do. On top of drawing up a business plan and hiring a team, you will also want to think about where you form your LLC, should you decide to go that route. By knowing the best states to form an LLC, you can make a more informed decision about what is best for your business.
One of the biggest advantages of forming an LLC is that they are available in all 50 states. This is in contrast to other structures, such as Limited Liability Partnerships (LLPs), which are not universally available. But with so many potential location options for your business, you may be curious about which ones make the most sense. In truth, it is often best to form your LLC in the state in which you are doing business, though that is not always the case. Read on to learn about some of the more business-friendly states for LLCs.
Best States to Form an LLC: Wyoming
You may not associate Wyoming with big business, but has some major allure for individuals seeking to form LLCs. With corporate and individual tax rates of zero percent, setting up a shop near the Rockies can grant you a tax haven of sorts. Home to a relatively low sales tax and favorable unemployment numbers, you could do worse than forming your LLC in Wyoming.
Setting Up in South Dakota
South Dakota: home to the Badlands and Mt. Rushmore. This state is also a hotbed for LLCs. Like Wyoming, this state features zero percent corporate and individual tax rates. With a six percent sales tax, and an average property tax of a staggeringly low one percent, South Dakota can be a great place to launch your company.
Exploring the Frontiers of Alaska
Alaska is home to expansive, pristine frontiers. It is also home to a number of savvy business owners. Somewhat uniquely, Alaska has no sales tax, which can help boost your bottom line. There is also a zero percent personal income tax, and a corporate tax rate below 10 percent. While the Great North is not for everyone, if you are looking for an adventure, you may think about starting your business in Alaska.
Form Your LLC Online Today
If you have decided on a state for your LLC, it is time to complete some paperwork. While each jurisdiction will differ in its requirements, you will need to file Articles of Organization with your chosen state’s designated agent. At Corporation Center, we offer easy-to-use web forms to create LLCs in all 50 states, so no matter what you choose, we have you covered. Contact us by email today if you have additional questions.