Best States to Start an LLC: If you are looking to start your own business, there are many factors you should consider, such as the type of industry you will be operating in, and the legal structure of the firm. In a recent article we presented the 7 most profitable businesses you could start, so be sure to check that out if you are going to start a new venture. Yet as already stated, apart from picking the right industry sector, choosing the right business type and location is also very important.
Many business owners decide to form an LLC, otherwise known as a limited liability company. The advantage of an LLC is that your personal assets will not be part of the liability of your firm, thus protecting you in case the enterprise should fail or encounter financial difficulties. If you have decided to choose this form of business over sole proprietorship or a general partnership, then there still remains the question of location. Thus, in the following list we will be looking at the best states to start an LLC, in order to make your decision easier.
Since there is no residency requirement to form an LLC, you can choose the location of your firm freely. This is very beneficial since taxes and regulations vary amongst states, generating differences within the US that give certain states the upper hand when looking to start an LLC. Although many people remain skeptical and prefer to incorporate within their home state, the absence of a legal requirement to do so opens up many possibilities. Thus, tax-free states or corporation-friendly states not only become a viable option, but even an attractive one.
So what are the best states to start an LLC? Well, after taking into account tax, cost, and jurisdictional considerations, we were able to come up with a list of the most attractive states to incorporate your business. Whether you decide to go for a domestic LLC in your home state, or a foreign LLC in another state, you should definitely bear in mind that each offers different advantages.
Nevertheless, we wish to present you our list of the three best states to start an LLC and let you decide for yourself. After all, your home state might just be on this list, making it unwise to move your business elsewhere. The following list does not present the states in any particular order. In other words, we have not created a ranking, but simply wish to present the benefits of these states, which stand out in comparison with the rest of the US when it comes to forming an LLC. Head to the next page to take a closer look at what these states have to offer.