sStates in USA and your business:

A company in any country is a legal entity for a business. Company will indicate what type of business you are performing? It helps separate your personal and business affairs, taxation, debts and liabilities and much more.

Register LLC in your home state (state in which you reside). If you are forming as a foreigner then make sure you register your company in a state where you intend to do business. Having LLC in one state and doing business in another can bring lots of trouble like fines, court cases, double fees, double annual filing etc.

Are you thinking of avoiding tax? Think again

Some think that registering LLC in a state with low fee / low tax like Wyoming or Nevada will cost them less, but that is not the case. You will have to pay taxes in states where you are doing business in addition to where your LLC is formed. It will make everything double.

Is Delaware state a good one?

Delaware is also thought to be a good state to form LLC. But only for corporate business, publicly traded companies. If you are one of them then Delaware is a good option, if not then no.

Which state is best for business?

Whether you are working online, have clients or customers from different states or you can say different countries, still the best option is home -state. Always choose state for filing LLC where you are sitting and running /operating your business from. It is where you live, where you pay your taxes, from where you have got your ID docs/ driver license. Doesn’t matter if you are a frequent traveler. Just remember above things.

If you are a wholesaler or seller of your own products you will need “Seller permit” too. Getting seller permit in other states is a difficult and time consuming task and expensive too. Again, file LLC in a state where you live and get all certifications and documents for performing business from that state. It will be easy and less time taking.  

Best state for Non-US residents? 

 If you are non – US and want to have office and employees work from a specific state then file LLC in that state. If your business doesn’t have a physical presence i.e., living abroad, non-US and starting business in USA. Then choose any state. in case of taxes, it doesn’t matter because taxation depend entirely on what kind of business you are doing. 

Most people forming USA LLC are those who are non-US are typically sellers. Want to know which state is best in case of taxation? check our taxation related article.  

USA state LLC filing fees and LLC Annual fees: 

Fees displayed in table are of year 2021. To Know about why these fees are charged and who charges them, also what kind of reports are required from LLCs. Keep reading.

[table id=statefilingfee /]

What are LLC filing fees? 

States charge some fees for filing LLC. There are other fees and requirements by state when you file LLC in that particular state.

What is LLC filing fee?

LLC filing fee is charged by every USA state to form your company (LLC or corporation) in their state. Every state has a different fee and it varies from $40 – $600 (as you can see in above table). This fee is charged against legally registering your company and preparing company incorporation documents. This fee is one time and for a year.

What is annual filing?

Some people don’t know that there is an annual filing fee of every USA state that they must pay to keep the status of their company. This fee is also called Biennial Fee. Many states require you to pay a certain amount of fee to keep your company status, some charge this fee every two years, while some charge this every 10 years. You can check which state charge what amount and after what time period in above table. 

You must not ignore this requirement because state will shut down your company.  It does not matter how much your company earns or perform any activity or not. This fee is mandatory.