If you plan to start a business in USA – you have a possibility to incorporate in any of the 50 states. They all differ based on filing fees, LLC (limited liability company) maintenance fees and so on.
In this article we’ll try to cover the best 5 states that you should definitely consider when forming an LLC in U.S.
Without further ado, let’s see those top-5 states for your new LLC!
Michigan is a perfect state for new businesses. When starting an LLC in Michigan – you’ll be rewarded with no double taxation between states. Meaning, you can reside in any other state, create an LLC in MI and you won’t be double taxed.
When talking about costs of incorporating in Michigan – they’re very affordable. Filing for an LLC will only cost you $50 and yearly maintenance fee are a mere $25 dollars.
This state is not only beautiful with it’s nature but also attractive business-wise. Creating an LLC in Montana will only cost you $70 to file your Articles of organization and the yearly LLC fee is only $20. So considering the pricing – it’s a no brainer. Moreover, Montana has a very convenient online filing process for LLCs. So you can file all your documents online.
Colorado is very business-friendly. The state has legalized marijuana and CBD products not so long ago. So no matter what your business is – you will definitely find a place for it in CO. Furthermore, the filing fee for an LLC in Colorado is $50, with an annual payment of only $10.
Here’s a quick video explaining how you can form an LLC in Colorado on your own:
Wyoming is especially loved by large net-worth business people. This is mainly because they don’t have a personal income tax. So if you plan to be a big ‘baller’ – then you might want to consider WY for you LLC.
Furthermore, the filing fee is only $100 and yearly LLC maintenance cost is $50 USD. It’s a bit more than previous states, but it’s definitely very affordable.
We’ve listed California here not because of it’s low-cost, but rather high-opportunity. This state boasts the highest concentration of startups, IT companies and… high taxes.
So while there are plenty of opportunities there – you will have to pay for it. Even maintaining an LLC there will set you down -$800 every year!
As you can see – LLC is the perfect choice for any starting business. Especially, it’s a very convenient and tax-friendly legal entity which will provide the security by separating your personal assets from the company’s. Either way, you can definitely do all the hard work of filing all the legal forms, contacting the secretary of state and forming your LLC yourself. Or alternative, you can use a professional LLC service, for example RocketLawyer (you can read a full review about them here: https://llcguys.com/reviews/rocket-lawyer-review/) – They will form an LLC for you, fill all the forms, deal with all the paperwork for you in a very timely manner.
To conclude – you can choose any of these 5 states for your new LLC and you won’t be disappointed!