{"id":23698,"date":"2021-11-23T16:10:41","date_gmt":"2021-11-23T16:10:41","guid":{"rendered":"https:\/\/boostsuite.com\/?page_id=23698"},"modified":"2023-07-03T00:07:49","modified_gmt":"2023-07-03T00:07:49","slug":"best-states","status":"publish","type":"page","link":"https:\/\/boostsuite.com\/llc\/best-states\/","title":{"rendered":"The Best States to Form an LLC"},"content":{"rendered":"\n<p>When trying to find the best states to form a Limited Liability Company (LLC), you must consider many important factors, such as the cost of forming an LLC, the ease of forming an LLC, the processing time, the level of ongoing compliance, and the tax rates of each particular state.&nbsp;<\/p>\n\n\n\n<p>I\u2019ve investigated and compared each state using five different factors to rate them and determine the best states in which to form an LLC.<\/p>\n\n\n\n<p>Here\u2019s the best state to form your LLC:<\/p>\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #212121;color:#212121\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #212121;color:#212121\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#1_Colorado_Best_Overall\" title=\"1. Colorado (Best Overall)\">1. Colorado (Best Overall)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Pros\" title=\"Pros\">Pros<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Cons\" title=\"Cons\">Cons<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Overall\" title=\"Overall\">Overall<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#2_Delaware_Best_Court_System\" title=\"2. Delaware (Best Court System)\">2. Delaware (Best Court System)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Pros-2\" title=\"Pros\">Pros<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Cons-2\" title=\"Cons\">Cons<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Overall-2\" title=\"Overall\">Overall<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#3_Wyoming_Most_Flexible_Compliance\" title=\"3. Wyoming (Most Flexible Compliance)\">3. Wyoming (Most Flexible Compliance)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Pros-3\" title=\"Pros\">Pros<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Cons-3\" title=\"Cons\">Cons<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Overall-3\" title=\"Overall\">Overall<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#4_Nevada_Business-friendly\" title=\"4. Nevada (Business-friendly)\">4. Nevada (Business-friendly)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Pros-4\" title=\"Pros\">Pros<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Cons-4\" title=\"Cons\">Cons<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Overall-4\" title=\"Overall\">Overall<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Honorable_Mentions\" title=\"Honorable Mentions\">Honorable Mentions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_Cheapest_State_to_Form_an_LLC_In\" title=\"The Cheapest State to Form an LLC In\">The Cheapest State to Form an LLC In<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_Most_Expensive_State_to_Form_an_LLC_In\" title=\"The Most Expensive State to Form an LLC In\">The Most Expensive State to Form an LLC In<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_Easiest_State_to_Form_an_LLC_In\" title=\"The Easiest State to Form an LLC In\">The Easiest State to Form an LLC In<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_Hardest_State_to_Form_an_LLC_In\" title=\"The Hardest State to Form an LLC In\">The Hardest State to Form an LLC In<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_State_with_the_Fastest_Approval_Time\" title=\"The State with the Fastest Approval Time\">The State with the Fastest Approval Time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_State_with_the_Slowest_Approval_Time\" title=\"The State with the Slowest Approval Time\">The State with the Slowest Approval Time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_State_with_the_Least_Ongoing_Compliance\" title=\"The State with the Least Ongoing Compliance\">The State with the Least Ongoing Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_State_with_the_Most_Ongoing_Compliance\" title=\"The State with the Most Ongoing Compliance\">The State with the Most Ongoing Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_State_with_the_Lowest_Income_Tax_Rate\" title=\"The State with the Lowest Income Tax Rate\">The State with the Lowest Income Tax Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#The_State_with_the_Highest_Income_Tax_Rate\" title=\"The State with the Highest Income Tax Rate\">The State with the Highest Income Tax Rate<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#LLC_Start-up_Requirements_by_State\" title=\"LLC Start-up Requirements by State\">LLC Start-up Requirements by State<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Colorado_Best_Overall\"><\/span>1. Colorado (Best Overall)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After evaluating all 50 states and the District of Columbia according to their ease of startup, start-up costs, ongoing compliance, and income tax rates, it is clear that the state of Colorado is the best state in which to start an LLC.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pros\"><\/span>Pros<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There were two reasons I chose Colorado as the best state to form your LLC in.&nbsp;<\/p>\n\n\n\n<p>The first is that Colorado has the third lowest start-up costs for LLC formation in the country at $85 in filing fees. Compared with the national average of $346.17 in start-up fees, it\u2019s easy to see the appeal. The paperwork itself is simple (no complicated questions to answer) and filing is made easy with an intuitive online filing system. Other states with lower start-up costs either have complex or confusing paperwork to file or have higher tax rates, making them less than ideal.<\/p>\n\n\n\n<p>The second is that the state of Colorado has no personal or corporate tax, making it very appealing to many business owners. Only six other states have no corporate or personal income tax, so this is a rare benefit for an American business to have. And compared with those states, Colorado still has the overall cheapest start-up costs.<\/p>\n\n\n\n<p>The third is that Colorado has also undergone a population boom that has created a diverse and widely available labor force and customer base, giving you no shortage of employees or customers. Cities like Denver have also become hubs for international start-ups and the state\u2019s economy has seen rapid growth over the last decade with a budget surplus of $5.29 billion in March of 2021.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cons\"><\/span>Cons<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Colorado\u2019s only real flaw is in the processing period. You can expect to wait up to 20 days for your documents to be approved in Colorado. However, there are definitely states that take longer. States like New York can have up to a six-week waiting period, so really Colorado\u2019s wait time isn\u2019t that bad.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overall\"><\/span>Overall<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Although there are states with faster processing times and some with lower start-up costs, Colorado delivers the best overall value to the aspiring business owner. With only $85 in filing fees to start your business and no personal or corporate tax combined with the economic boom Colorado has been experiencing for the last decade, it\u2019s easy to see why Colorado is the best state for forming an LLC.<\/p>\n\n\n\n<p>For more information on how to start a Limited Liability Company (LLC) in Colorado, click here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Delaware_Best_Court_System\"><\/span>2. Delaware (Best Court System)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Delaware ranks #2 on my list because, despite having an extremely business-friendly court system, their tax rates and start-up costs are much higher than Colorado.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pros-2\"><\/span>Pros<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Delaware is often considered incredibly business-friendly because it has a specific court system for business-related affairs. Known as the Chancery Court, this system is dedicated to business-related affairs and the judges are experts in business law. Delaware\u2019s Chancery Court also has an outstanding reputation for fairness when it comes to business lawsuits, and cases are resolved faster than the average state.&nbsp;<\/p>\n\n\n\n<p>Delaware also has a relatively intuitive online system and filing your LLC paperwork is very easy. You can also expect a processing time of 1\u20133 weeks, so you may get your documents approved faster than in Colorado.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cons-2\"><\/span>Cons<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Delaware\u2019s main drawbacks are the moderately high tax rate and their inclusion of a franchise tax. Delaware\u2019s annual franchise tax is a flat tax of $300 and must be paid by every LLC formed in the state of Delaware each year, no matter their income or business activity. Delaware\u2019s personal income tax can also go up to 6.6% and corporate taxes are a flat rate of 8.7% (one of the highest in the country).<\/p>\n\n\n\n<p>Delaware\u2019s LLC start-up costs ($465) are also over five times higher than Colorado\u2019s.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overall-2\"><\/span>Overall<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Delaware's reputation for being business-friendly is largely supported by the Chancery Court. However, If you consider Delware\u2019s Chancery Court to be the main draw, it\u2019s probably a good idea for you to find a different career path because no one should plan on that much legal trouble.&nbsp;<\/p>\n\n\n\n<p>The high tax rates and moderately high start-up costs make it difficult to rank it higher than Colorado. You will likely get your LLC documents approved faster than Colorado, but considering how much higher the costs are, I don\u2019t think it\u2019s worth it.&nbsp;<\/p>\n\n\n\n<p>For more information on forming an LLC in Delaware, click here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Wyoming_Most_Flexible_Compliance\"><\/span>3. Wyoming (Most Flexible Compliance)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Wyoming has a reputation for flexible business regulations, but it comes in at #3 on this list because it still isn\u2019t the cheapest despite its lack of personal or corporate tax.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pros-3\"><\/span>Pros<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Wyoming has flexible compliance regulations and doesn\u2019t even require you to visit the state, meaning you can file all your paperwork for a foreign LLC based in Wyoming without leaving the comfort of your own home, or even your pajamas.&nbsp;<\/p>\n\n\n\n<p>They also don\u2019t require more information or hassle than the average state. Wyoming\u2019s LLC paperwork is fairly simple to file and it doesn\u2019t require answering any bizarre questions or supplying large quantities of information. All you\u2019ll need when filing your Wyoming LLC paperwork is the mailing and office address for your LLC, your registered agent\u2019s name and address, and the signature and contact info of your <a href=\"https:\/\/boostsuite.com\/registered-agent\/what-is\/difference\/organizer\/\">LLC\u2019s organizer<\/a>.<\/p>\n\n\n\n<p>Wyoming is also one of only seven states that doesn\u2019t impose any type or personal or corporate tax, so it\u2019s easy to see why many business owners choose to set up an LLC in Wyoming.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cons-3\"><\/span>Cons<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Wyoming\u2019s waiting period for LLC approval can take over two weeks, and they require much more than Colorado\u2019s $85 in start-up costs. Business formation in the state of Wyoming costs $202 in filing fees. They also have a waiting period of up to 15 days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overall-3\"><\/span>Overall<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Wyoming may have some of the most relaxed regulations for business formation in the country, but other states are still cheaper or have faster processing. Considering it\u2019s only five extra days in Colorado, it\u2019s worth it for the savings.&nbsp;<\/p>\n\n\n\n<p>Although you won\u2019t be subject to any personal or corporate income tax, Wyoming still has annual fee obligations for your small business.<\/p>\n\n\n\n<p>For more information on how to start an LLC in Wyoming, click here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Nevada_Business-friendly\"><\/span>4. Nevada (Business-friendly)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Nevada is number four on my list because although business owners won\u2019t have to pay taxes here, the LLC paperwork is complicated and they have higher levels of ongoing compliance.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pros-4\"><\/span>Pros<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Nevada doesn\u2019t impose corporate, personal, or even franchise taxes and it has extremely low annual fees. Nevada also doesn\u2019t require you to hold meetings or adopt an Operating Agreement, so there aren\u2019t many roadblocks here. You also aren\u2019t required by the state of Nevada to disclose any of your personal information when it comes to public filings, allowing you to remain anonymous and fully enjoy the privacy protection of forming an LLC.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cons-4\"><\/span>Cons<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Nevada\u2019s LLC start-up costs are over five times higher than Colorado\u2019s $85. Business owners looking to form LLCs in the state of Nevada pay $600 in filing fees. They also require more information on your LLC formation documents than most states. Nevada also requires LLCs to submit a list of all members, officers, and directors (even if you don\u2019t have an operating agreement) as part of their annual reporting process, and they have an annual filing fee of $150.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overall-4\"><\/span>Overall<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Nevada\u2019s biggest appeal is the relaxed business regulations and lack of personal or corporate income tax. When you factor in their fast processing time for online and mail-in filings, it\u2019s worth considering. However, Nevada\u2019s start-up costs are significantly higher than Colorado, Delaware, and Wyoming at a whopping $600.<\/p>\n\n\n\n<p>For more information on how to start an LLC in the state of Nevada, click here.<\/p>\n\n\n\n<p>I haven\u2019t rated the next 47 states and territories because who really wants to start their LLC in the 11th best state? But here are some of the category winners and losers if you\u2019re looking for something specific.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Honorable_Mentions\"><\/span>Honorable Mentions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Just because Colorado is the overall best state to form a Limited Liability Company (LLC), it doesn\u2019t mean it\u2019s the cheapest, fastest, or easiest. Those awards were taken by some of their neighboring states.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Cheapest_State_to_Form_an_LLC_In\"><\/span>The Cheapest State to Form an LLC In<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The cheapest state for forming an LLC is a tie between Kentucky and New Mexico. LLC start-up costs in these two states are only $70 in terms of filing fees. If you choose to act as your own registered agent and file all your own paperwork, business formation in these two states can be extremely inexpensive.&nbsp;<\/p>\n\n\n\n<p>Hawaii is the next cheapest state to form your LLC in, with only $75 in filing fees to get your formation documents processed. Colorado, Iowa, and Arizona round out the list of the cheapest states to form your LLC in with start-up costs of $85, $90, and $95 respectively.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Most_Expensive_State_to_Form_an_LLC_In\"><\/span>The Most Expensive State to Form an LLC In<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If start-up cost is your main concern, then states like Tennessee and Massachusetts are not for you. Tennessee can have start-up costs of over $6,000 depending on how many members are in your LLC. Massachusetts also has start-up fees that exceed $1,000, so these are not cheap states to form businesses in.&nbsp;<\/p>\n\n\n\n<p>LLCs in Delaware ($465), Nevada ($600), or Washington DC ($570) have high start-up costs, making those states ones to avoid if you're looking at keeping your start-up costs low.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Easiest_State_to_Form_an_LLC_In\"><\/span>The Easiest State to Form an LLC In<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another factor to consider when ranking the best states to form an LLC in is how easy or difficult the LLC formation process is for that state.<\/p>\n\n\n\n<p>Colorado and Delaware are by far the easiest states to form your LLC in. Colorado has a simple and easy-to-use online filing system and Delaware allows filing via mail or fax. Both states also have short and simple Articles of Organization forms, making the overall business formation process simple and easy.&nbsp;<\/p>\n\n\n\n<p>New Mexico, North Dakota, and Missouri are fairly simple and straightforward as well, although not as easy as Colorado. If keeping the overall business formation process simple and easy is your preference, then these are the states for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Hardest_State_to_Form_an_LLC_In\"><\/span>The Hardest State to Form an LLC In<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In contrast, these states have the most complex business formation forms and filing systems in the country.&nbsp;<\/p>\n\n\n\n<p>California is the hardest state for forming an LLC because the state requires you to submit additional paperwork within 90 days of formation for their biennial report system. California biennial reports must include information such as the names and addresses of any LLC members, managers, or officers. Compared with Colorado, their system for forming an LLC is much more complex.&nbsp;<\/p>\n\n\n\n<p>Georgia requires you to submit an additional form called a Transmittal Information Form for your Georgia Limited Liability Company if you prefer to file by mail. This form must include your LLC\u2019s email address in addition to copies of the information already listed on your Articles of Organization.&nbsp;<\/p>\n\n\n\n<p>Louisiana\u2019s Articles of Organization are complex and require additional forms if you choose to file in person or by mail. Nebraska lacks official forms and requires you to draft your own business formation documents, often requiring legal advice to get it right. The state of New York requires you to publish your LLC formation in two approved newspapers within 120 days of filing your Articles of Organization.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_State_with_the_Fastest_Approval_Time\"><\/span>The State with the Fastest Approval Time<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Low start-up costs and simple paperwork are good, but if you can avoid spending up to six weeks waiting on approval and get a head start on your business that\u2019s even better. The following states have the fastest waiting periods for forming an LLC in the country.<\/p>\n\n\n\n<p>Maine and Idaho require you to pay an extra $100 for same-day or immediate processing, but if you\u2019re eager to get your small business up and running then it\u2019s worth the investment. However, Missouri, South Carolina, and Kansas all offer processing times of 24 hours or less for online filings, which is fantastic for the eager business owner.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_State_with_the_Slowest_Approval_Time\"><\/span>The State with the Slowest Approval Time<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The state of New York has one of the longest processing times for LLC formation with a waiting period of 6\u20137 weeks. Combined with the publication requirement previously mentioned, this can delay the start of your business.&nbsp;<\/p>\n\n\n\n<p>Delaware, California, Colorado, and Arizona have approval times that are half as long but can still leave you waiting for over two weeks.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_State_with_the_Least_Ongoing_Compliance\"><\/span>The State with the Least Ongoing Compliance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Ongoing legal compliance refers to things like annual or biennial reports and any other paperwork or regulations your LLC will be required to follow or file on a regular basis. These additional procedures can be stressful and add extra layers of complexity to running your business, so ranking each state by its ongoing compliance was crucial for determining which state is the best to form an LLC in.<\/p>\n\n\n\n<p>Arizona, Missouri, and Ohio don\u2019t require LLCs to file annual reports, so they tie for the state with the least ongoing compliance.&nbsp;<\/p>\n\n\n\n<p>The state of New Mexico doesn\u2019t require your business to file annual reports either, but it does require LLCs to file a similar document called an Income and Information Return for Pass-Through Entities, but this document is relatively simple to fill in. The state of Iowa only requires a biennial report and the form itself isn\u2019t very complex, and you\u2019ll receive a reminder from the Secretary of State the month before it\u2019s due.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_State_with_the_Most_Ongoing_Compliance\"><\/span>The State with the Most Ongoing Compliance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Alaska requires an Initial Report to be filed within six months of your LLC formation, followed by a Biennial Report due every two years thereafter. The state does not offer reminders for your filing date, so that\u2019s something you\u2019ll have to track yourself, so it\u2019s the state with the most ongoing compliance.&nbsp;<\/p>\n\n\n\n<p>The state of Alabama requires your LLC to keep a collection of legal and business documents readily available for inspection. Alabama also has a specific tax that businesses need to pay called a Business Privilege Tax. California requires LLCs to file a Statement of Information within 90 days of their Articles of Organization being approved and every two years thereafter.<\/p>\n\n\n\n<p>Louisiana has location-specific filing requirements for your LLC\u2019s Initial Report, which can make the business formation process difficult or confusing if you\u2019re from out of state.&nbsp;<\/p>\n\n\n\n<p>New York requires your LLC to pay annual fees in addition to the aforementioned publication requirement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_State_with_the_Lowest_Income_Tax_Rate\"><\/span>The State with the Lowest Income Tax Rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>We all have to pay taxes, which is why income taxes are one of the most important long term considerations for your business. Considering that LLCs are typically exempt from federal taxes, the state income taxes businesses are subject to are one of the most important factors to consider when figuring out which state is the best to form an LLC in.<\/p>\n\n\n\n<p>Some states don\u2019t impose a personal income tax but still have a corporate income tax that businesses must pay, but Colorado, Montana, Nevada, Oregon, South Dakota, Washington, Wyoming have absolutely no personal or corporate income taxes. This makes these seven states very appealing to small and large businesses of any type, but even more so to LLCs and it means they tie for the state with the lowest income tax rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_State_with_the_Highest_Income_Tax_Rate\"><\/span>The State with the Highest Income Tax Rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Conversely, Pennsylvania, New Jersey, Illinois, Iowa, and Maine have some of the highest rates in the country, making them less appealing for businesses seeking to lower their tax expenses. New Jersey is the state with the highest income tax rate, with a corporate income tax rate of 11.5%.&nbsp;<\/p>\n\n\n\n<p>Pennsylvania has the second highest corporate income tax rate of 9.99%. Illinois comes in a close third with 9.5%. Iowa\u2019s upper tax brackets come in at 9.8%, making them higher than Illinois in some cases. The state of Maine also has a high corporate tax rate, with a range from 3.5% to 8.93% for businesses.&nbsp;<\/p>\n\n\n\n<p>The only silver lining in these states is that the personal income tax rates are much lower, but that\u2019s hardly an upside if you\u2019re running a small business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"LLC_Start-up_Requirements_by_State\"><\/span>LLC Start-up Requirements by State<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>State<\/strong><\/td><td><strong>Start-up Cost<\/strong><\/td><td><strong>Ease&nbsp;<\/strong><\/td><td><strong>Processing Time<\/strong><\/td><td><strong>Ongoing Compliance<\/strong><\/td><td><strong>Income Tax Rates<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/alabama\/\" data-type=\"page\" data-id=\"21839\">Alabama LLC<\/a><\/td><td>$278<\/td><td>Medium\/Hard<\/td><td>Differs by county, but some counties as little as 3 days with expedited processing.<\/td><td>Hard<\/td><td>Personal Tax Rate: 2%\u20135%<br>Corporate Tax Rate Tax Rate: 6.5%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/alaska\/\" data-type=\"page\" data-id=\"22158\">Alaska <meta charset=\"utf-8\">LLC<\/a><\/td><td>$425<\/td><td>Medium\/Hard<\/td><td>10\u201315 days<\/td><td>Hard<\/td><td>Personal Income Tax: 0%<br>Corporate Tax Rate Tax Rate:&nbsp;0%\u20139.4%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/arizona\/\" data-type=\"page\" data-id=\"21028\">Arizona <meta charset=\"utf-8\">LLC<\/a><\/td><td>$95<\/td><td>Medium\/Hard<\/td><td>15\u201317 days, Also offers expedited processing<\/td><td>Easy<\/td><td>Personal Tax Rate: 2.59%\u20134.5%<br>Corporate Tax Rate Tax Rate: 4.9%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/arkansas\/\" data-type=\"page\" data-id=\"22154\">Arkansas <meta charset=\"utf-8\">LLC<\/a><\/td><td>$217.50<\/td><td>Medium<\/td><td>48 hours<\/td><td>Medium<\/td><td>Personal Tax Rate: 2%\u20135.9%<br>Corporate Tax Rate Tax Rate: 1%\u20133%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/california\/\" data-type=\"page\" data-id=\"20941\">California <meta charset=\"utf-8\">LLC<\/a><\/td><td>$100<\/td><td>Hard<\/td><td>15\u201320 days<\/td><td>Hard<\/td><td>Personal Tax Rate: 1%\u201312.3%<br>Corporate Tax Rate: 8.84%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/colorado\/\" data-type=\"page\" data-id=\"20470\">Colorado <meta charset=\"utf-8\">LLC<\/a><\/td><td>$85<\/td><td>Easy<\/td><td>20 days<\/td><td>Medium<\/td><td>Personal Tax Rate: None<br>Corporate Tax Rate: None<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/connecticut\/\" data-type=\"page\" data-id=\"22408\">Connecticut <meta charset=\"utf-8\">LLC<\/a><\/td><td>$200<\/td><td>Medium<\/td><td>7\u201310 days<\/td><td>Medium<\/td><td>Personal Tax Rate: 3%\u20136.99%<br>Corporate Tax Rate: 7.50%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/washington-dc\/\" data-type=\"page\" data-id=\"22955\">DC <meta charset=\"utf-8\">LLC<\/a><\/td><td>$570<\/td><td>Medium<\/td><td>5\u20137 days online, 3 weeks by mail<\/td><td>Medium<\/td><td>Personal Tax Rate:&nbsp;4%$85,025 plus: 8.95%<br>Corporate Tax Rate: 8.25%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/\" data-type=\"page\" data-id=\"20844\">Delaware <meta charset=\"utf-8\">LLC<\/a><\/td><td>$465<\/td><td>Easy<\/td><td>1\u20133 weeks<\/td><td>Medium<\/td><td>Personal Tax Rate: 2.2%\u20136.60%<br>Corporate Tax Rate: 8.7%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/florida\/\" data-type=\"page\" data-id=\"20925\">Florida <meta charset=\"utf-8\">LLC<\/a><\/td><td>$298.75<\/td><td>Medium<\/td><td>5\u201320 days<\/td><td>Medium<\/td><td>Personal Tax Rate: $0<br>Corporate Tax Rate: 4.458%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/georgia\/\" data-type=\"page\" data-id=\"21106\">Georgia <meta charset=\"utf-8\">LLC<\/a><\/td><td>$175<\/td><td>Hard<\/td><td>5\u20137 days online, 2 weeks by mail<\/td><td>Medium<\/td><td>Personal Tax Rate: 1%\u20135.35%<br>Corporate Tax Rate: 4.55%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/hawaii\/\" data-type=\"page\" data-id=\"22606\">Hawaii <meta charset=\"utf-8\">LLC<\/a><\/td><td>$75<\/td><td>Medium<\/td><td>3\u20135 days online, 7\u201314 by mail<\/td><td>Medium<\/td><td>Personal Tax Rate: 1.4%\u201311%<br>Corporate Tax Rate: 4.4%\u20136.4%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/idaho\/\" data-type=\"page\" data-id=\"22599\">Idaho <meta charset=\"utf-8\">LLC<\/a><\/td><td>$120<\/td><td>Medium<\/td><td>1\u20132 weeks, same day processing for $100<\/td><td>Medium<\/td><td>Personal Tax Rate: 1%\u20136.5%<br>Corporate Tax Rate:6.5%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/illinois\/\" data-type=\"page\" data-id=\"21099\">Illinois <meta charset=\"utf-8\">LLC<\/a><\/td><td>$250<\/td><td>Medium<\/td><td>10\u201315 days<\/td><td>Medium<\/td><td>Personal Tax Rate: 4.95%<br>Corporate Tax Rate: 9.50%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/indiana\/\" data-type=\"page\" data-id=\"21738\">Indiana <meta charset=\"utf-8\">LLC<\/a><\/td><td>$152<\/td><td>Medium<\/td><td>1\u20135 days<\/td><td>Easy\/Medium<\/td><td>Personal Tax Rate: 3.23%<br>Corporate Tax Rate: 5.25%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/iowa\/\" data-type=\"page\" data-id=\"22603\">Iowa <meta charset=\"utf-8\">LLC<\/a><\/td><td>$90<\/td><td>Medium<\/td><td>48 hours online, 3\u20134 weeks by mail<\/td><td>Easy<\/td><td>Personal Tax Rate: 0.33%\u20136.5%<br>Corporate Tax Rate: 5.5%\u20139.8%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/kansas\/\" data-type=\"page\" data-id=\"21235\">Kansas <meta charset=\"utf-8\">LLC<\/a><\/td><td>$255<\/td><td>Medium<\/td><td>1 day online, 3\u20135 days by mail<\/td><td>Medium<\/td><td>Personal Tax Rate: 3.1%\u20135.7%<br>Corporate Tax Rate: 4%\u20137%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/kentucky\/\" data-type=\"page\" data-id=\"22151\">Kentucky <meta charset=\"utf-8\">LLC<\/a><\/td><td>$70<\/td><td>Medium<\/td><td>1\u20133 days<\/td><td>Easy\/Medium<\/td><td>Personal Tax Rate: 5%<br>Corporate Tax Rate: 5%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/louisiana\/\" data-type=\"page\" data-id=\"22609\">Louisiana <meta charset=\"utf-8\">LLC<\/a><\/td><td>$155<\/td><td>Hard<\/td><td>2\u20133 days<\/td><td>Hard<\/td><td>Personal Tax Rate: 2%\u20136%<br>Corporate Tax Rate: 4%\u20136%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/maine\/\" data-type=\"page\" data-id=\"22618\">Maine <meta charset=\"utf-8\">LLC<\/a><\/td><td>$280<\/td><td>Medium<\/td><td><meta charset=\"utf-8\">5\u201310 days, or immediate processing for $100<\/td><td><meta charset=\"utf-8\">Medium<\/td><td><meta charset=\"utf-8\">Personal Tax Rate: 5.8%\u20137.15%<br>Corporate Tax Rate: 3.50%\u20138.93%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/maryland\/\" data-type=\"page\" data-id=\"22949\">Maryland <meta charset=\"utf-8\">LLC<\/a><\/td><td>$425<\/td><td>Medium<\/td><td>5\u20137 days online,&nbsp;4\u20136 weeks by mail<\/td><td>Medium<\/td><td>Personal Tax Rate: 2%\u20135.75%<br>Corporate Tax Rate: 8.25%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/massachusetts\/\" data-type=\"page\" data-id=\"21546\">Massachusetts <meta charset=\"utf-8\">LLC<\/a><\/td><td>$1050<\/td><td>Medium<\/td><td>24\u201336 hours<\/td><td>Medium<\/td><td>Personal Tax Rate: 5%<br>Corporate Tax Rate: 8%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/michigan\/\" data-type=\"page\" data-id=\"21033\">Michigan <meta charset=\"utf-8\">LLC<\/a><\/td><td>$100<\/td><td>Medium<\/td><td>10\u201315 days<\/td><td>Medium<\/td><td>Personal Tax Rate: 4.25%<br>Corporate Tax Rate: 6%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/minnesota\/\" data-type=\"page\" data-id=\"21543\">Minnesota <meta charset=\"utf-8\">LLC<\/a><\/td><td>$100<\/td><td>Medium<\/td><td>Approximately 10 days<\/td><td>Medium<\/td><td>Personal Tax Rate: 4.25%<br>Corporate Tax Rate: 6%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/mississippi\/\" data-type=\"page\" data-id=\"22715\">Mississippi <meta charset=\"utf-8\">LLC<\/a><\/td><td>$100<\/td><td>Medium\/Hard<\/td><td>1\u20132 days online, 2\u20133 weeks by mail<\/td><td>Medium<\/td><td>Personal Tax Rate: 4.25%<br>Corporate Tax Rate: 6%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/missouri\/\" data-type=\"page\" data-id=\"21494\">Missouri <meta charset=\"utf-8\">LLC<\/a><\/td><td>$57\u2013$112<\/td><td>Easy<\/td><td>Immediate Online, 5\u201310 Business Days by mail<\/td><td>Easy<\/td><td>Personal Tax Rate: 1.5%\u20136%<br>Corporate Tax Rate: 6.25%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/montana\/\" data-type=\"page\" data-id=\"20490\">Montana <meta charset=\"utf-8\">LLC<\/a><\/td><td>$110<\/td><td>Medium<\/td><td>7\u201310 Business Days<\/td><td>Medium<\/td><td>None<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/nebraska\/\" data-type=\"page\" data-id=\"22711\">Nebraska <meta charset=\"utf-8\">LLC<\/a><\/td><td>$125<\/td><td>Hard<\/td><td>1\u20132 Business Days Online, 3\u20135 by mail<\/td><td>Medium<\/td><td>Personal Tax Rate: 2.46%\u20136.84%<br>Corporate Tax Rate:5.58%\u20137.81%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/nevada\/\" data-type=\"page\" data-id=\"21230\">Nevada <meta charset=\"utf-8\">LLC<\/a><\/td><td>$600<\/td><td>Medium\/Hard<\/td><td>1\u20133 Days Online, 3\u20135 Days by mail<\/td><td>Medium<\/td><td>None<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/new-hampshire\/\" data-type=\"page\" data-id=\"22694\">New Hampshire <meta charset=\"utf-8\">LLC<\/a><\/td><td>$215<\/td><td>Medium<\/td><td>2 hours in person, 1 week Online, 3 weeks by mail<\/td><td>Medium<\/td><td>Personal Tax Rate:&nbsp;0%<br>Corporate Tax Rate: 7.7%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/new-jersey\/\" data-type=\"page\" data-id=\"22952\">New Jersey <meta charset=\"utf-8\">LLC<\/a><\/td><td>$228<\/td><td>Medium<\/td><td>1\u20133 Days, 24 hours expedited<\/td><td>Medium<\/td><td>Personal Tax Rate:5.535%\u20138.97%<br>Corporate Tax Rate:11.5%<br>State: $125 per LLC Member<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/new-mexico\/\" data-type=\"page\" data-id=\"21112\">New Mexico <meta charset=\"utf-8\">LLC<\/a><\/td><td>$70<\/td><td>Easy<\/td><td>1\u20133 Days<\/td><td>Easy<\/td><td>Personal Tax Rate:5.9%<br>Corporate Tax Rate:4.8%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/new-york\/\" data-type=\"page\" data-id=\"20998\">New York <meta charset=\"utf-8\">LLC<\/a><\/td><td>$270<\/td><td>Hard<\/td><td>6\u20137 weeks<\/td><td>Hard<\/td><td>Personal Tax Rate:4%\u201310%<br>Corporate Tax Rate:7.25%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/north-carolina\/\" data-type=\"page\" data-id=\"22935\">North Carolina <meta charset=\"utf-8\">LLC<\/a><\/td><td>$255<\/td><td>Medium<\/td><td>7\u201310 Business Days<\/td><td>Medium<\/td><td>Personal Tax Rate:5.25%<br>Corporate Tax Rate:2.5%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/north-dakota\/\" data-type=\"page\" data-id=\"22941\">North Dakota <meta charset=\"utf-8\">LLC<\/a><\/td><td>$185<\/td><td>Easy<\/td><td>2\u20133 Weeks<\/td><td>Medium<\/td><td>Personal Tax Rate:1.1%\u20132.9%<br>Corporate Tax Rate:1.41%\u20134.31%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/ohio\/\" data-type=\"page\" data-id=\"21038\">Ohio <meta charset=\"utf-8\">LLC<\/a><\/td><td>$138<\/td><td>Medium<\/td><td>10 Business Days<\/td><td>Easy<\/td><td>Personal Tax Rate:0%\u20134.79%<br>Corporate Tax Rate: None if under $150,000 in annual profits<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/oklahoma\/\" data-type=\"page\" data-id=\"22946\">Oklahoma <meta charset=\"utf-8\">LLC<\/a><\/td><td>$135<\/td><td>Medium<\/td><td>2 Business Days Online or 7\u201310 by mail<\/td><td>Medium<\/td><td>Personal Tax Rate:0.5%\u20135%<br>Corporate Tax Rate:6% (Drops to 4% in 2022)<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/oregon\/\" data-type=\"page\" data-id=\"20574\">Oregon <meta charset=\"utf-8\">LLC<\/a><\/td><td>$300<\/td><td>Medium<\/td><td>7 Business Days<\/td><td>Easy<\/td><td>None<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/pennsylvania\/\" data-type=\"page\" data-id=\"22926\">Pennsylvania <meta charset=\"utf-8\">LLC<\/a><\/td><td>$195<\/td><td>Medium\/Hard<\/td><td>7\u201310 Business Days<\/td><td>Easy<\/td><td>Personal Tax Rate:3.07%<br>Corporate Tax Rate:9.99%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/rhode-island\/\" data-type=\"page\" data-id=\"23859\">Rhode Island <meta charset=\"utf-8\">LLC<\/a><\/td><td>$250<\/td><td>Medium<\/td><td>2\u20133 Business Days<\/td><td>Easy<\/td><td>Personal Tax Rate:3.75%\u20135.99%<br>Corporate Tax Rate:7%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/south-carolina\/\" data-type=\"page\" data-id=\"23865\">South Carolina <meta charset=\"utf-8\">LLC<\/a><\/td><td>$135<\/td><td>Medium<\/td><td>24 hours Online,5\u20137 Business Days by mail<\/td><td>Easy<\/td><td>Personal Tax Rate:0%\u20137%<br>Corporate Tax Rate:5%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/south-dakota\/\" data-type=\"page\" data-id=\"23377\">South Dakota <meta charset=\"utf-8\">LLC<\/a><\/td><td>$240<\/td><td>Medium<\/td><td>Immediately for Online, 1\u20132 Business Days by mail<\/td><td>Easy<\/td><td>None<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/tennessee\/\" data-type=\"page\" data-id=\"23383\">Tennessee <meta charset=\"utf-8\">LLC<\/a><\/td><td>$620\u2013$6020<\/td><td>Medium<\/td><td>24 hours Online,3\u20135 Business Days by mail<\/td><td>Medium<\/td><td>Personal Tax Rate:&nbsp;0%<br>Corporate Tax Rate:6.5%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/texas\/\" data-type=\"page\" data-id=\"21117\">Texas <meta charset=\"utf-8\">LLC<\/a><\/td><td>$340<\/td><td>Medium<\/td><td>1\u20133 Business Days<\/td><td>Easy<\/td><td>Annual Franchise tax:0.37%\u20130.75%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/utah\/\" data-type=\"page\" data-id=\"21121\">Utah <meta charset=\"utf-8\">LLC<\/a><\/td><td>$112<\/td><td>Medium<\/td><td>2 Business Days Online, 5\u20137 By Mail<\/td><td>Medium<\/td><td>Personal Tax Rate:4.95%<br>Corporate Tax Rate:5%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/vermont\/\" data-type=\"page\" data-id=\"22938\">Vermont <meta charset=\"utf-8\">LLC<\/a><\/td><td>$180<\/td><td>Medium<\/td><td>1\u20132 Business Days online, 7\u201310 Business Days by mail<\/td><td>Medium<\/td><td>Personal Tax Rate:3.35%\u20138.75%<br>Corporate Tax Rate:6%\u20138.5%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/virginia\/\" data-type=\"page\" data-id=\"20673\">Virginia <meta charset=\"utf-8\">LLC<\/a><\/td><td>$160<\/td><td>Medium<\/td><td>3\u201312 Business Days<\/td><td>Medium<\/td><td>Personal Tax Rate:2%\u20135.75%<br>Corporate Tax Rate:6%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/washington\/\" data-type=\"page\" data-id=\"23380\">Washington <meta charset=\"utf-8\">LLC<\/a><\/td><td>$290<\/td><td>Medium<\/td><td>7\u201310 Business Days<\/td><td>Medium<\/td><td>None<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/virginia\/\" data-type=\"page\" data-id=\"20673\">West Virginia <meta charset=\"utf-8\">LLC<\/a><\/td><td>$140<\/td><td>Medium\/Hard<\/td><td>5\u201310 Business Days<\/td><td>Medium<\/td><td>Personal Tax Rate:3%\u20136.5%<br>Corporate Tax Rate:6.5%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/wisconsin\/\" data-type=\"page\" data-id=\"21540\">Wisconsin <meta charset=\"utf-8\">LLC<\/a><\/td><td>$170<\/td><td>Medium<\/td><td>2 business Days Online, 5 by mail<\/td><td>Medium<\/td><td>Personal Tax Rate:6.27%<br>Corporate Tax Rate:7.9%<\/td><\/tr><tr><td><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/wyoming\/\" data-type=\"page\" data-id=\"20352\">Wyoming <meta charset=\"utf-8\">LLC<\/a><\/td><td>$202<\/td><td>Medium<\/td><td>10\u201315 Business Days<\/td><td>Medium\/Hard<\/td><td>None<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now you know the basics of forming an LLC and which states have the best tax rates for businesses, processing times, start-up costs, and the least ongoing compliance. With all that information, it\u2019s easy to see why I picked Colorado as the best state for forming an LLC.<\/p>\n\n\n\n<p>Of course, the best option for new business owners is typically forming a domestic LLC in their home state, but if your small business is ready to expand, then Colorado is the best choice based on the five factors discussed today. By forming an LLC in the state of Colorado, you\u2019ll get the best balance of low tax rates, low start-up costs, ease of formation, processing speed, and ongoing compliance in the country.<\/p>\n\n\n\n<p>Even though some states offer faster processing times, considering how easy and cheap it is to start a Limited Liability Company (LLC) in the state of Colorado, I\u2019d say it\u2019s worth the wait.<\/p>\n\n\n\n<p>If you\u2019d like any more information on the factors I used to determine the best states to form an LLC in, check out the table below.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>When trying to find the best states to form a Limited Liability Company (LLC), you must consider many important factors, such as the cost of &#8230; <a title=\"The Best States to Form an LLC\" class=\"read-more\" href=\"https:\/\/boostsuite.com\/llc\/best-states\/\" aria-label=\"Read more about The Best States to Form an LLC\">Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"parent":650,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":""},"post_excerpt_stackable_v2":"<p>When trying to find the best states to form a Limited Liability Company (LLC), you must consider many important factors, such as the cost of forming an LLC, the ease of forming an LLC, the processing time, the level of ongoing compliance, and the tax rates of each particular state.&nbsp; I\u2019ve investigated and compared each state using five different factors to rate them and determine the best states in which to form an LLC. Here\u2019s the best state to form your LLC: Table of Contents Toggle 1. Colorado (Best Overall)ProsConsOverall2. Delaware (Best Court System)ProsConsOverall3. Wyoming (Most Flexible Compliance)ProsConsOverall4. Nevada (Business-friendly)ProsConsOverallHonorable&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Aaron Kra","url":"https:\/\/boostsuite.com\/author\/aaron\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages\/23698"}],"collection":[{"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/comments?post=23698"}],"version-history":[{"count":9,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages\/23698\/revisions"}],"predecessor-version":[{"id":27073,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages\/23698\/revisions\/27073"}],"up":[{"embeddable":true,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages\/650"}],"wp:attachment":[{"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/media?parent=23698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}