Best State to Register a US LLC

If you are ready to register an LLC in the USA, first, you need to decide what will be the best State to file for the registration of your company. Although there are some general federal laws on business in general and corporations and LLCs in particular, most business regulations exist on the State level. And they vary significantly from State to State. Thus, whenever you are ready to incorporate, you face the question of where to do that.

Many things depend on your decision on where to file. First, requirements to form an LLC vary from State to State. Second and most importantly, when choosing the State of registration, you select the legal framework to work within as long as your company exists. So the question is: “What is the best State to register an LLC in the USA?”

Unfortunately, there is no simple answer. A better question to ask is, “What is the best State to register for you?” Every situation is unique. The choice of State depends on many questions like what kind of business you are in and how you will run it.

Forming an LLC for US Residents

If you are working and living permanently in the USA and will start an LLC here, then the best State to form your company will probably be where you live and work. The reason for this is simple. Let’s suppose you live and work in one State and register your company in another. In this case, you should also register your company in your domicile State as a foreign company. Thus your company will have to pay State taxes and comply with all the State requirements as if you formed it initially there. So it’s just like setting up your company twice.

There are few exceptions, though. For instance, if you do business in more than one State, your situation will be more complicated. In this case, you will need to consult with an experienced corporate lawyer  and tax adviser. You will also need professional advice if you are going to launch a startup. Most venture capitalists and institutional investors prefer to deal with startups structured as C-Corporation and registered in Delaware. Thus, you probably should consider registering your startup as a C-Corporation in the State of Delaware.

Setting Up an LLC for Nonresidents

If you are not living in the United States permanently and are not a US tax resident, the first question to ask is whether your LLC will be doing any business anywhere in the USA. If the answer is “yes,” you probably should register it in the State where it will be doing business. Note that if your company does business in more than one States, your situation becomes significantly more complicated. Then you will need professional advice from an American attorney on where to register to optimize your expenses.

On the other hand, if you are not a US tax resident and your LLC will not have any business in the US territory, you are more flexible. In this case, it probably will be a holding company, and it makes sense to register your LLC in one of the US States that does not have State taxes or in Delaware. Delaware does not have State taxes for companies that do not do business on its territory. A holding LLC can get dividends from other related companies from abroad, invest them in US stock exchanges like NYSE and NASDAQ, and have minimum or no federal tax on the profit.

Legal Services After Your US LLC is Up and Running

We offer full-service consulting on registering companies in the USA, getting a tax ID, opening a bank account, etc. So, whether you are ready to go ahead with forming an LLC in the USA or still thinking over this possibility – get in touch with us. We will help you evaluate your options, pros, and cons and make an informed decision.

We will help you with the paperwork and all other formalities when you are ready to file your LLC. We’ll walk you through the whole registration process up to the moment when you get a Certificate of Registration. And when your company is ready to go, you can count on us for legal advice, strategic consulting, and business logistics.

For example, we can help you obtain the Tax Identification Number (EIN), which your company will need to open a bank account. We can also advise you on how to lease an office, hire employees, and do other things to boost your business in America. We want our clients to be happy and strive to maintain long-lasting, mutually beneficial relations with them.