Best State to Form an LLC

Best State to Form an LLC

You've decided to start a business but the question is: where?

In truth, it's hard to pinpoint the perfect place for your business without knowing the market and what you intend to do with it. Do you need a headquarters? Franchise options for those interested in the company? Or are you simply desiring to work out of your shed and have the coverage an LLC provides?

We've narrowed down some of the best (and easiest) places to start an LLC in the United States, but we encourage you to investigate the questions in the paragraph above on your own time, too. Let's get started!

The Southeast

Hey, y'all. The southeast is an ideal spot for everything agriculture, food, and mechanical. Even small, rural towns will have need of these sorts of businesses, and shopping is always trendy, too. The largest cities may be cheaper than some of the others in the nation, but that cost is quickly growing as time ticks on. If you want to set up a headquarters in Atlanta, you need to jump on it now.

Of these states, some of the lowest state taxes in the nation include Florida, Georgia, and Alabama. If you can take the hot summers, these states could put you ahead of the crowd.

The Northeast

From Pennsylvania to Maine, there is a flood of people leaving the cold north for the economic boom happening in the south (as of this writing). This means that you can snag incredibly low real estate rates from those who are in a hurry to leave, and you might find incentives for businesses incoming to the state, too.

In truth, if you're looking at a home in Vermont or New Hampshire, you may even get an incentive to move your family there, too. Check into these before you leave, but they were announced in 2018 for FY 19 and beyond. With an aging population, these states need to be able to plan for the future. That means encouraging younger people with taxable incomes to move into their state.

Considering states with low taxes of one type or another? Look into New York and Maine for your business's new home. There's a reason New York City continues to thrive as one of the great business capitals of the world. Your business might be next.

Central United States

For simplicity's sake, we're collapsing this group together from the Mississippi River to Colorado or so. Much like Alabama and Georgia, these states thrive on agricultural businesses and good ol' homestyle workmanship. The larger cities will happily run on white-collar jobs, too, but many are based around blue-collar needs.

States with low taxes (or no state taxes at all) out yonder include Texas and South Dakota; two vastly different climates as your business needs.

The Southwest

The sizzling desert and the arid mesas hide a plethora of cheap business startup areas. Though Arizona has lost its place in this tier, both New Mexico and Nevada still hold tightly to lower taxes, easier ways to create an LLC, and low fees for doing so. One must remember that this section of the country can have some interesting issues with water supplies, however, so there may be a waiting list if your LLC uses large amounts of water. This does change from year to year, depending on the exact stage of drought in the area.

California, as is to be expected, is one of the highest costs in this area but it does come with a lot of clout. The state has many potential connections for those in the entertainment industry. Despite its price, it may still be worth eyeing.

The Northwest

This area of the country is a little trickier. While cities such as Portland and Seattle are rife with fees and waiting lists, costs, and taxation, you'll find very little of that in a place such as Idaho or Wyoming. Indeed, the more rural the area, the less likely you are to have substantial fees. In a world where e-business is ever-growing, you may decide to conduct online more than face to face.

Outside of the Continental United States Including Territories

Alaska and Hawaii are two of the most popular states for LLCs because of their low costs and low taxes. In fact, Alaska may pay you to move your business there depending on the exact details of that business. Puerto Rico is another wonderful place to consider for those who want to work within the US but desire a little distance, too.