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I f you’re looking for the best state in which to start an LLC or incorporate a business, there are several factors to consider. Many entrepreneurs or startup founders might want to start a business in the state where they already reside. Unless you are going to be investing in real estate in another state, it’s often easier to form an LLC or other business structure in the state where you have your primary residence.
But if you have a choice of which state you want to start your business in, or if you are prepared to relocate to start your company, it might be useful to consider the overall business climate and ease of starting a business in various states across the country.
Different states have different strengths and weaknesses when it comes to forming a business. Some states have higher taxes, more complicated compliance regulations or stricter business licensing requirements for small businesses, while others may make it more difficult for you to get access to labor or financing.
The decision of where to start a business is complicated, and often depends on the overall intuition and personal needs of the founder, or the industry-specific economic prospects of the business. For example, if you sell surfboards, you will likely want to locate your business in California or Florida instead of a landlocked state. If you want your business to serve an industry that has a big presence in New York City, you might want to form your company in New York state or New Jersey.
But many other businesses, such as online enterprises or professional services firms, are location-independent and do not need to rely on one specific place to find clients. If you have some flexibility for where to locate your business, you might want to consider the overall picture of which state is the best state for LLC formation.
Here are a few factors to consider when deciding what is the best state to incorporate your business. This list is not all-inclusive, but these 10 states are considered by experts to be among the friendliest for small business.
As you can see, there is no single “best” state for incorporating your business. It all depends on a variety of factors, such as where you want to live, where your key target markets operate, where you can get access to financing, where you can hire great talent, and where (and whether) a particular place fits into your overall strategic vision for what you want your business to be.
But if you’re trying to decide between two or more different states, consider the full package of advantages, risks and opportunities that each place presents. Hopefully this guide can help inform your decision-making about the best state for LLC formation for your new business.
Are you ready to start a bu s iness , form an LLC or reorganize your current business structure with business incorporation services? Talk to Bizee today ! Our incorporation experts can help you evaluate your options with state-specific advice.
Ben Gran is a freelance writer from Des Moines, Iowa. Ben has written for Fortune 500 companies, the Governor of Iowa (who now serves as U.S. Secretary of Agriculture), the U.S. Secretary of the Navy, and many corporate clients. He writes about entrepreneurship, technology, food and other areas of great personal interest. Read more
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