When you consider forming an LLC company in Usa, your first decision will probably be state selection.
When choosing a state, it is important where the work will be done. If you are not a resident of the United States and do not have a physical location such as an office, shop, or store in any state, it is possible to form an llc in any state as a non-US citizen and an entrepreneur who does business remotely.
Important information for US citizens or US residents:
Incorporate your company in the state where you are located and do business. Otherwise, you will form a foreign LLC, and in this case, you will face situations such as taxes or licenses (permit to do business) in the future.
If you are not a US citizen or resident of the US, you can form an llc in any state to do business remotely. State or federal laws do not impose any restrictions on this matter, but annual expenses, maintenance, installation costs, etc. are very important elements for an llc.
At this point, it would be much wiser to choose states with more reasonable annual expenses and entry costs.
If you do not have a physical location in any state of the USA, you can form an llc in any state as a foreign entrepreneur.
The installation processes of some states may differ from others. In fact, in some states the situation may be more complex than in others.
The table below lists the pros and cons of LLC company formation by state. We recommend that you examine this table carefully before deciding on the state where you will form an LLC company.
| State Name | Pros | Cons |
| Alabama | NO | Requires high installation costs and original signed certified copies |
| Alaska | No personal income tax | There is no anonymity, your personal information is displayed publicly |
| Arizona | LLCs have no annual reports and state fees | New LLCs must gazette the company formation |
| Arkansas | It is a state with low income tax rates | You will be exposed to high franchise tax on reporting |
| california | Provides a large number of potential customers and prestige | Must pay minimum franchise tax of $800 |
| Colorado | Allows online filings, transactions are very fast | Annual reporting involves a lot of bureaucracy and tedious technical details |
| Connecticut | NO | Everything is unnecessarily expensive throughout the process |
| Delaware | It is famous for being home to many large holding companies | Taxes are high for companies with a physical location in Delaware. Additionally, you must pay $300 franchise tax every year. |
| District of Columbia | Provides a large number of potential customers and prestige | DCRA and business licensing departments require attention |
| Florida | No personal income tax | Annual reporting deadlines should not be missed; if missed, you will be subject to significant penalties. |
| Georgia | Affordable prices during transactions | New LLCs must gazette their companies setup, which makes no sense |
| Hawaii | It is a state with a relaxed attitude and a comfortable lifestyle | Has a high gross income tax |
| Idaho | No fee required for annual reports | It is difficult to find highly skilled and motivated employees |
| illinois | NO | High taxes, high fees, boring regulations |
| indiana | Reasonable fees, reasonable taxes | NO |
| Iowa | Biennial reports, low costs | Unfortunately, there aren't many jobs available in Iowa. |
| Kansas | SOS (state online portal) is fast and helpful | Costs are quite high compared to the rest of Usa |
| Kentucky | It is the cheapest state to do business for a start. | Local taxes and filings required for formed companies |
| Louisiana | NO | It is a state with unnecessary, complicated procedures |
| Maine | Reasonable fees, reasonable taxes | There are strange/confusing situations regarding clerks and business registered agents |
| maryland | NO | It takes two months to process files |
| massachusetts | Transactions are executed very quickly | unnecessary costs |
| Michigan | Taxes are very low and there are many office options for formed companies | It is difficult to do jobs such as production and industry |
| Minnesota | Does not charge annual report fees from local businesses | Transactions are quite slow |
| mississippi | Laws not fully regulated for LLCs | Terrible filing fees for foreign companies |
| Missouri | It is a cheap and reasonable state to do business as a resident | It requires unnecessary re-reporting after initial setup. |
| Montana | Cheap prices, fast filing | NO |
| Nebraska | Low startup costs | It is a state where original wet signatures are required with methods dating back to 1980. |
| Nevada | Major asset protection rules | It has become a very expensive, over-controlled, bureaucratic state. |
| new hampshire | No sales tax | They require wet signatures and original documents during company formment. |
| New Jersey | Provides a large number of potential customers and prestige | Minimum $500 tax plus 1/2 down payment for next year required |
| New Mexico | Great laws for LLCs, affordability, anonymity | NO |
| new York | There is no advantage | It has the title of being the second worst state to do business. Once the company is formed, it is required to advertise in two local newspapers and file again with the state. |
| north carolina | NO | They reject some LLC applications for no reason |
| north dakota | It's becoming popular these days | Their infrastructure is not ready yet |
| Ohio | No annual report | Ministry of Finance is complex and procedures are strange |
| Oklahoma | A reasonable and cheap state to do business | There are some confusing regulations, filings and procedures |
| Oregon | No sales tax | Has high income taxes |
| pennsylvania | No annual report | Very high fees and paperwork, procedures |
| Rhode Island | NO | High wages come with high taxes |
| south carolina | Low taxes, no annual reports | They are a little slow and require documents with wet signatures for applications. |
| south dakota | No personal income tax | It is said to be very aggressive revenue management |
| Tennessee | NO | High filing fees and taxes |
| Texas | Great state for formed small businesses | SOS charges $1 for name searches |
| Utah | 5% income tax, they charge an extra $70 to start your business | They ship EVERYTHING to your registered agent |
| Vermont | Low-cost registrations and annual fees | Original wet signatures require confusing forms |
| virginia | It can be said that it is a little better than DC | High taxes and fees for large companies |
| washington | No personal income tax | Over-regulated, it's getting harder and harder to work |
| WestVirginia | An easy and reasonable state to do business | NO |
| Wisconsin | NO | High fees, strange procedures and funny annual reports for foreign companies |
| wyoming | Low taxes, fees and excellent asset protection laws, Anonymity, Some additional features for free, fast processing | NO |
The pros and cons of the states in this table are generally stated for businesses located in the state (having an office, shop, store, physical location). But filing and some procedures also apply to foreign companies.
4 Comments . New Comment
Hello
, I think I could not explain my question clearly.
I will decide the state where I will do business based on your advice.
Which state has the lowest tax rate for food trucks?
Thank you
Ali.
You can choose the state of Wyoming, which has a state income tax of 0 (zero), in which case it will be more advantageous.
mrb
food truck, both in terms of taxes, consumption and as a university student?
Thank you
Ali
Hello, it will be healthier and more advantageous in every respect to form an LLC in the state where you will do business.