Did you know that you don’t have to start your LLC in your home state?
There are several factors that you should consider when deciding which state to form your business in.
Filing Fees - Different US states have different fees for the initial formation of an LLC. Filing fees can range from $40 to $800.
Annual Fees - To maintain your LLC, you must pay annual fees to the Secretary of State of your LLC state; these fees are usually known as Annual Report Fees. Different states charge different rates. It’s important to know that these fees must be paid. If you don’t pay them, the LLC will be dissolved. If you plan to operate a long-term business under your LLC, affordable annual fees can be an important factor in choosing the right state for your LLC.
Anonymity - In some states, there’s no public register of shareholders or members, so it’s precious for people who value privacy and anonymity. In this context, anonymity means that the owners of the LLC aren’t made public. Although anonymity of the owners of an LLC is usually provided by default, it’s not always guaranteed. Ownership of a company can be revealed through legal processes such as government investigations and litigation.
A foreign limited liability company (LLC) is one that has been created in a state or country other than the one in which the owner lives.
The purpose of setting up a foreign LLC is to take advantage of lower out of pocket cost, more privacy, and tax advantages.
Here are my favorite states for foreign (non resident) LLC’s.
1. Kentucky - Kentucky has the lowest start up cost in the country.
2. Delaware - Delaware offers the ultimate privacy. The names of the LLC owners are not required to be disclosed.
3. Wyoming - offers the same privacy as Delaware but also attractive since Wyoming has no personal income tax.
4. Nevada - no personal income tax and low annual reporting requirements. Forming an LLC to start earning money online? Inbox me for help!
Remember that all states have their pros and cons, so no state is better than the other one in all aspects - what really matters is where YOUR business needs are met.
