Limited Liability Corporations, or LLCs for short, are a hybrid sort of legal identity that protects their business owners while still allowing for growth and expansion. Business News Daily lists the benefits of forming an LLC, such as the owners’ personal assets being protected if ever the business faces legal issues, and a flexible management structure. In addition, every state also has their own sets of advantages that LLCs can benefit from. So, here are the most LLC-friendly states:
The labor force participation rate is still high at 67.9% with .41% of the population starting a new business. If you’re thinking of being part of the aforementioned demographic, consider forming an LLC in Alaska. The fee is $250, or $275 if you would like to reserve the business name first. Benefits include having fewer requirements and regulations for reporting compared to a lot of corporations, and you will only have to pay personal taxes rather than having taxes on both your personal and corporate profits. The corporate tax rate in Alaska is 9.4%, but there is no individual income and sales tax.
Forming an LLC in Florida is pretty straightforward, starting with filing your Articles of Organization, through mail or online, and paying a fee of $125. If you would like to receive some additional certificates, you will have to pay $160 instead. The benefits of forming an LLC in Florida include a 0% individual income tax rate and a 5.5% corporate tax rate. Florida’s local economy is improving all the time, and is integrating large-scale multimodal transportation systems. There is plenty of access to capital as the state is home to many investment capitalists and private investors. Furthermore, Florida is also a popular holiday destination during the colder seasons, giving you opportunities for growth and expansion.
The process of starting an LLC in this particular state is very straightforward, and fees for filing your Articles of Organization cost just $100. Some of the benefits of forming an LLC in Wyoming include the opportunity to form a Close LLC, which makes it easier to pass down the business to your next generation, and Series LLC, which have unlimited segregations of assets and operations among independent series. Each series operates like a separate company from the parent LLC, with a unique name, bank account, and records. With Wyoming also having a 4% sales tax rate, no corporate and individual income tax, it’s no surprise there is a high level of startups in the state.
Filing the Articles of Organization in Nevada costs $75, but other fees include a business license for $200 and the fee for filing an annual list of managers for $150. Nevada currently has the highest percentage of available employees, as well as the highest density of startups, with 100 for every 1,000 firms. Moreover, the state has a fast-growing economy, so you might also want to consider forming an LLC in Nevada. The sales tax rate is at 6.85%, but there is no tax on either corporate or individual income. The annual fees are very low, and so are property taxes. The Secretary of State aims to take business formation completely to the digital world, so the process might be easier and faster than it is in other states.