Incorporating your business as an LLC is easy, and the process can be completed online to save you time. However, you will first need to decide if you are going to incorporate in your home state or out of state.
In-State LLC vs. Out-of-State LLC
Registering an LLC in your home state may be ideal if you operate your business in state. However, businesses that rely on out-of-state business can benefit from incorporating in a different state. You may also consider registering out-of-state if their tax laws are of benefit to you. You will have to pay some fees to operate out of state, and the decision depends on whether you will save or lose money by incorporating in a different state. There are a few states that are especially popular for incorporation because of their tax laws. Choosing one of these states hinges on the specific needs of your business. Find what's right for you.
Nevada: A Haven for Small Businesses
Nevada has become a very popular state to incorporate because of its various tax benefits for businesses. The state gets most of its revenue from gaming, and as a result, Nevada does not impose a personal income tax. It also doesn't tax LLC profits or LLC ownership. When you incorporate in Nevada, there is no Information Sharing Agreement with the IRS because there is no department for income tax. Nevada's laws favor businesses and the privacy of their owners, and the state is especially ideal for small businesses.
Big Business in Delaware
Like Nevada, Delaware has laws in place that protect businesses and enable them to flourish. Its benefits include low filing fees and low franchise taxes. The state also has no corporate income taxes for foreign LLCs. However, while Nevada is considered to be a destination for small businesses, many larger businesses are based in Delaware.
Wyoming: Unchartered Territory
Wyoming is not as popular as Nevada but has many of the same benefits for small businesses. Many owners of LLCs have therefore begun to realize its hidden potential. Like Nevada, Wyoming has no business or franchise taxes. However, it has the added bonus of more anonymity for business owners. Wyoming is unique in that it allows you to have a lifetime proxy. The proxy is able to represent your business internets and vote in your absence while you remain anonymous. VIsit Swyft Filings to find out more.
Once you choose the right state for the incorporation of your LLC, you can proceed with online registration. You will need to choose a name that is available in your state. After registering online, the next step will be to begin running your business to its full potential.