{"id":9476,"date":"2024-10-05T14:17:52","date_gmt":"2024-10-05T12:17:52","guid":{"rendered":"https:\/?p=9476"},"modified":"2024-10-23T12:00:18","modified_gmt":"2024-10-23T10:00:18","slug":"best-state-to-create-an-llc","status":"publish","type":"post","link":"https:\/\/juanmaaranda.com\/en\/mejor-estado-para-crear-una-llc\/","title":{"rendered":"Best state to open an LLC"},"content":{"rendered":"<p class=\"wp-block-paragraph\">As I explained in another of the articles in this blog, forming an <strong>LLC in the United States<\/strong> can be an excellent option for entrepreneurs who need to <a href=\"https:\/\/\/en\/facturar-sin-ser-autonomo-la-solucion\/\" data-type=\"post\" data-id=\"9474\">invoicing without being self-employed<\/a>but the <strong>costs<\/strong> and the <strong>tax charges<\/strong> vary significantly among the different states.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And this should be one of the first decisions you make when it comes to<a href=\"https:\/\/\/en\/como-crear-una-llc-en-nuevo-mexico-desde-espana\/\" data-type=\"link\" data-id=\"https:\/como-crear-una-llc-en-nuevo-mexico-desde-espana\/\"> cing an LLC in the United States<\/a> United: the state where you are going to incorporate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below, I will explain the <strong>most recommended states<\/strong> to form an LLC in terms of incorporation costs, tax burdens and overall benefits.<\/p>\n\n\n\n<figure class=\"gb-block-image gb-block-image-557dead0\"><a href=\"https:\/\/juanma.tube\/northwest\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img decoding=\"async\" width=\"729\" height=\"90\" class=\"gb-image gb-image-557dead0\" src=\"http:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2.png\" alt=\"\" title=\"agent registrar llc usa\" srcset=\"https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2.png 729w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2-480x59.png 480w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2-240x30.png 240w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2-18x2.png 18w\" sizes=\"(max-width: 729px) 100vw, 729px\"><\/a><\/figure>\n\n\n\n<figure class=\"gb-block-image gb-block-image-256fd35c\"><a href=\"https:\/\/juanma.tube\/northwest\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img decoding=\"async\" width=\"300\" height=\"250\" class=\"gb-image gb-image-256fd35c\" src=\"http:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrado-northwest-eeuu.png\" alt=\"\" title=\"registered agent northwest usa\" srcset=\"https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrado-northwest-eeuu.png 300w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrado-northwest-eeuu-162x135.png 162w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrado-northwest-eeuu-14x12.png 14w\" sizes=\"(max-width: 300px) 100vw, 300px\"><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Delaware<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Famous for its business-friendly environment<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">Advantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Legal flexibility<\/strong>Delaware has a very pro-business legal system, with a court specializing in business disputes, the <strong>Court of Chancery<\/strong>. This court is known for its quick and business-friendly decisions.<\/li>\n\n\n\n<li><strong>Anonymity<\/strong>You can create an LLC in Delaware without the names of the members or managers being public knowledge.<\/li>\n\n\n\n<li><strong>Favorable taxation for non-resident companies<\/strong>If your LLC does not generate income in Delaware, you will not have to pay state income tax.<\/li>\n\n\n\n<li><strong>Low franchise tax<\/strong>Delaware levies an annual franchise tax of <strong>$300<\/strong>which is affordable compared to other states.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Disadvantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Although Delaware does not collect corporate income taxes on businesses that do not operate within the state, all LLCs must pay the Delaware corporate income tax rate. <strong>$300 of franchise tax<\/strong>regardless of their income level.<\/li>\n\n\n\n<li><strong>Initial charges<\/strong>Initial incorporation costs may be slightly higher compared to other states.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Recommended for<\/strong>International entrepreneurs seeking a solid legal structure, with legal protection and tax advantages for non-US businesses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Wyoming<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Economical and with anonymity<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">Advantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Low incorporation costs<\/strong>Wyoming is known to be one of the most affordable states to form an LLC. The initial cost of formation is approximately <strong>$100<\/strong>.<\/li>\n\n\n\n<li><strong>No state income tax<\/strong>Wyoming does not impose a state income tax on individuals or businesses, which means you will not have to pay taxes on out-of-state profits.<\/li>\n\n\n\n<li><strong>Low franchise tax<\/strong>The annual maintenance cost is very low, with a minimum maintenance fee of <strong>$50<\/strong> (or 0.0002% of the company's capital).<\/li>\n\n\n\n<li><strong>Anonymity<\/strong>LLC owners in Wyoming can remain anonymous, which provides additional privacy.<\/li>\n\n\n\n<li><strong>Asset protection<\/strong>Wyoming law provides a high degree of protection of personal assets from lawsuits.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Disadvantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Less internationally recognized than Delaware, although it has grown in popularity among entrepreneurs seeking privacy and low costs.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Recommended for<\/strong>Small or international companies looking for reduced costs and privacy, without the need for a complex corporate structure.<\/p>\n\n\n\n<figure class=\"gb-block-image gb-block-image-557dead0\"><a href=\"https:\/\/juanma.tube\/northwest\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img decoding=\"async\" width=\"729\" height=\"90\" class=\"gb-image gb-image-557dead0\" src=\"http:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2.png\" alt=\"\" title=\"agent registrar llc usa\" srcset=\"https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2.png 729w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2-480x59.png 480w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2-240x30.png 240w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrador-llc-eeuu-2-18x2.png 18w\" sizes=\"(max-width: 729px) 100vw, 729px\"><\/a><\/figure>\n\n\n\n<figure class=\"gb-block-image gb-block-image-256fd35c\"><a href=\"https:\/\/juanma.tube\/northwest\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img decoding=\"async\" width=\"300\" height=\"250\" class=\"gb-image gb-image-256fd35c\" src=\"http:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrado-northwest-eeuu.png\" alt=\"\" title=\"registered agent northwest usa\" srcset=\"https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrado-northwest-eeuu.png 300w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrado-northwest-eeuu-162x135.png 162w, https:\/\/juanmaaranda.com\/wp-content\/uploads\/2024\/10\/agente-registrado-northwest-eeuu-14x12.png 14w\" sizes=\"(max-width: 300px) 100vw, 300px\"><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">New Mexico<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">No annual reports and low costs<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">Advantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No franchise tax<\/strong>New Mexico: New Mexico does not charge a franchise tax or annual maintenance fees, making it one of the most economical options in the long term.<\/li>\n\n\n\n<li><strong>Anonymity<\/strong>LLC owners in New Mexico can maintain a high level of privacy, as no annual reports or information about LLC members are required in public records.<\/li>\n\n\n\n<li><strong>Low incorporation costs<\/strong>: The incorporation of an LLC in New Mexico costs around <strong>$50 to $100<\/strong>depending on whether you do it yourself or through a service.<\/li>\n\n\n\n<li><strong>Limited state taxes<\/strong>Although New Mexico has a Gross Receipts Tax, if your business does not physically operate in the state or generate income within the U.S., you will not be subject to it.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Disadvantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Less recognition<\/strong> compared to Delaware or Wyoming. While still a viable option, some international investors prefer other, better known states.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Recommended for<\/strong>Small businesses or international freelancers looking for a low-cost structure with minimal administrative obligations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Nevada<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">No income tax and no franchise tax, but more expensive<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">Advantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No state income tax<\/strong>Like Wyoming, Nevada has no income tax for individuals or businesses, which is a significant advantage if you plan to generate income.<\/li>\n\n\n\n<li><strong>Asset protection<\/strong>Nevada's laws are very favorable in terms of asset protection and limited liability.<\/li>\n\n\n\n<li><strong>Anonymity<\/strong>You can form an LLC without the names of the owners or managers being publicly disclosed, which gives you a high level of privacy.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Disadvantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High initial and annual costs<\/strong>Incorporation costs are higher than in Wyoming or New Mexico. Nevada has an initial fee of approximately <strong>$425<\/strong> (including a list of state fees, commercial registration and others).<\/li>\n\n\n\n<li><strong>High franchise tax<\/strong>Although Nevada technically does not have a franchise tax, it does have annual registration fees that can be more expensive than in other states.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Recommended for<\/strong>Those who seek a state with no income tax and who do not mind paying higher initial and annual fees for greater asset protection and anonymity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Texas<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">No income tax, but with franchise taxes<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">Advantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No state income tax<\/strong>Texas does not have a personal income tax, which can be beneficial if you expect to generate income.<\/li>\n\n\n\n<li><strong>Good business environment<\/strong>Texas is a pro-business state, with a diverse and business-friendly economy.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Disadvantages<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Franchise tax<\/strong>Although there is no income tax, Texas has an income tax rate of <strong>franchise tax<\/strong> based on gross receipts, which affects all LLCs operating in the state. This tax can be a drawback if you do not generate a lot of income.<\/li>\n\n\n\n<li><strong>Administrative costs<\/strong>Texas incorporation costs are relatively higher compared to other states such as Wyoming or New Mexico.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Recommended for<\/strong>Companies that expect to have a significant presence in the U.S., especially in Texas, where the economy is strong, and are looking to benefit from the lack of personal income tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion What is the most suitable state?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Yes <strong>you are looking for the lowest cost and administrative maintenance<\/strong>, <strong>Wyoming<\/strong> o <strong>New Mexico<\/strong> are the most recommended options. Both states offer a very favorable environment with minimal annual costs, making them excellent options for small businesses or international entrepreneurs who do not plan to have physical operations in the US.<\/li>\n\n\n\n<li>Yes <strong>you want greater anonymity<\/strong> and recognition, <strong>Delaware<\/strong> is a solid option. It is better known worldwide, which can be useful if you are looking for investors or if you have a long-term growth plan.<\/li>\n\n\n\n<li><strong>Nevada<\/strong> is ideal if you care about asset protection and don't mind assuming higher upfront costs.<\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>Discover the best states to form an LLC in the United States: Delaware, Wyoming and New Mexico. Costs, tax burdens and benefits in detail.<\/p>","protected":false},"author":2,"featured_media":9480,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"seo_booster_metabox":"","footnotes":""},"categories":[288],"tags":[287],"class_list":["post-9476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-llc","tag-llc","masonry-post","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/posts\/9476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/comments?post=9476"}],"version-history":[{"count":0,"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/posts\/9476\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/media\/9480"}],"wp:attachment":[{"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/media?parent=9476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/categories?post=9476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juanmaaranda.com\/en\/wp-json\/wp\/v2\/tags?post=9476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}