Best US States for Incorporation
Since 80s, the US has been the largest incorporation state for non-residents and residents. There are certain famous states for incorporation having favorable and business-friendly environment. The famous states include Wyoming, Florida, Delaware and Nevada. The blog contains a short summary to these states.
Wyoming has been the leading US state in forming an LLC. Business owners are not required to pay corporate income taxes, personal income taxes and franchise taxes. Additionally, Wyoming grants with very low annual fees and no expensive license fee.
Not only this, Wyoming business owners enjoy a tax-free culture along with privacy. The ownership is not a matter of public records; instead it’s kept discreet from the public. Resident and non-residents, both are also permitted to incorporate in Wyoming.
Florida has been the pace-setter in the incorporation industry. One of the most important criteria for incorporation is the tax system of the state. It is very convenient and favorable for the business owners. There are certain non-taxed items for the business owners which lead to cost-effectiveness.
They include inventory taxes, personal income taxes, franchise tax on capital stock, taxes on ad valorem taxes on goods-in-transit, sales taxes on food and medicine, and some others.
Delaware is a home-land for over 60% of the Fortune 500 companies listed under the American Stock Exchange. The state is business-friendly along with a favorable judicial system. The time for incorporation in Delaware is very less (48 hours). They are subjected to pay an annual tax of $50. Business owners are not liable to pay any state income tax unlike other states.
One of the best criteria the state offers is the Chancery Court. This court is especially established to hear the Delaware entity cases. Additionally, the Delaware laws are tested timely to keep maintain their uniqueness and exclusivity from other states’ laws.
Nevada used to be the best state to form a corporation. But the increased fee in these eight years has dropped the value for incorporating in Nevada. But, still there are certain benefits to incorporate in Nevada. Nevada is the only state which doesn’t shares information with the IRS unlike all other states.
Business owners are not accountable to pay the franchise taxes, taxes on corporate shares, and personal income taxes. In addition to this, the state protects the assets of the business owners. But the history of drastically increasing fee makes it more expensive and declines Nevada in popularity.
Business owners should consult their lawyers or accountants to choosing the best state for incorporation.