Which States Have Tax Advantages?

If you do not have a physical presence or connection in the state where you will form an llc, you will not pay any taxes to the state.

LLC companies are not taxed on a state basis, they only declare federal income tax and pay tax if necessary when ECI (ECI: in the USA, an active bond occurs in the case of having a physical store, office, payroll staff) is formed. This is the case in Wyoming, Delaware, New Mexico, etc. It is independent of all states. Income from LLCs is transferred to the owner, and the LLC owner pays or declares federal taxes. In summary, the state is not important in most cases. At this stage, if you are planning to form an LLC to trade from your own website, states that do not have annual maintenance or have low costs are preferred. Trying to attract entrepreneurs, New Mexico is preferred in this sense because it has no annual expenses. If you are going to run a marketplace store (such as Amazon Etsy), you can choose Wyoming, or Delaware for larger projects. Delaware is a highly preferred state, especially for businesses that have investment plans and future growth plans.

Establishing a company in a state that does not have a personal income tax does not mean that you will not pay taxes in the USA for life. our comprehensive article to better understand this subject .