If you are non-resident thinking of forming an LLC, several factors must be considered. First, you need to decide if you want your company to be taxed as a corporation or an S-Corp. Secondly, you must decide which state is best for your business. The following 5 states offer the most privacy and cost-effective fees when forming an LLC:
Which is the Best State to Form an LLC for Non-Residents? A Detailed Look in 2022
Delaware LLCs offer the most privacy
If you want to form an LLC while living in another state or as a non-US resident, Delaware is the state to do it. This is because Delaware has the most LLCs per capita and it’s very business-friendly. In fact, many of the considerable Fortune 500 companies use Delaware as their legal home base.
The reason for this popularity is that there are no taxes on income earned by non-residents of Delaware; only when that money leaves the state does it become subject to taxation in some way. Nonresident owners of Delaware LLCs also have privacy protections so that no one knows who owns them unless they choose to disclose this information themselves.
Learn More: Benefits of Forming an LLC in Delaware State
Wyoming LLCs are the cheapest to form
Wyoming LLCs are the cheapest to form, maintain and dissolve.
The cost of forming an LLC in Wyoming is $100 and there is no annual fee. The total cost of forming an LLC in Wyoming is $100 plus the state’s filing fees which range from $0 to $400 depending on your type of business entity.
Once you have formed your Wyoming LLC, there are no additional annual fees or taxes due unless your annual gross revenue exceeds $200,000 at which point you must pay a minimum flat fee of $300 per year plus 6% sales tax on all purchases made by your company (except for tangible personal property).
You will also need to pay any applicable sales or use taxes on all purchases made by your company if they are subject to such taxes under federal law or local ordinance. The minimum sales tax rate that applies depends on whether you conduct business primarily within a city located within this state with more than 5,000 people; if so then the minimum rate is 1%; otherwise it is 0%.
West Virginia LLCs are easy to form
West Virginia LLCs are easy to form, maintain and dissolve. They have no state income tax or franchise fees. There is no requirement that your West Virginia LLC has a physical presence in this state.
Forming an LLC in West Virginia is simple and straightforward—it involves filing a certificate of organization with the Secretary of State’s office (a $100 fee) and then conducting any other required filings with city or county offices as necessary (if applicable). Unlike many states, there is no waiting period before you can form an LLC in West Virginia. You can start doing business immediately after you register your company name with the Secretary of State’s office.
Your only obligation as the owner of an LLC is to file annual reports with the secretary of state every year on October 1st or December 31st by mail or email—they don’t even need to be signed; they just need to be returned!
Nevada LLCs have no state income tax
If you are a non-resident of the state of Nevada, and you form an LLC here, there are several reasons why Nevada may be the best choice for your LLC. First of all, there is no state income tax in Nevada. As a result, forming an LLC in this state can save your business money by avoiding this tax burden.
In addition to not having a personal income tax on businesses or individuals who live or work here, other states do charge franchise fees and corporate taxes on business profits earned by companies registered within their borders: neither of these expenses applies if you organize as an S corp or C corp in NV as well.
The lack of these additional expenses makes it cheaper for businesses to operate out-of-state than those based in other states with higher fees and taxes that must be paid every year; conversely though there may be some administrative costs associated with organizing a company outside its home jurisdiction (such as getting registered), they would likely be outweighed by any savings from not having to pay these extra charges over time.
South Dakota LLCs have no state corporation tax or franchise fees
South Dakota is a good choice for non-resident LLCs. It has no state income tax, no state corporation tax or franchise fees, no minimum capital requirement, and no annual report filing. If your business isn’t based in South Dakota but you have an office there (or perhaps another remote location) that you want to protect with an LLC, then this could be the right fit for your needs.
Non-Residents can pick a number of different states for their LLC.
Non-residents can pick a number of different states for their LLC. These include Delaware, Nevada, and Wyoming. If you live in another state, consider forming an LLC there as well.
There is no one best state to form an LLC for non-residents because each state has its own pros and cons. You should weigh these carefully when deciding on where to form your new business entity.
For example, Delaware is often considered the most popular choice because it charges no annual filing fee or Secretary of State’s fee to list your company with them (though this will cost you if you want a registered agent). It also has the fastest turnaround time—two days on average—for incorporating your new company and issuing initial stock certificates (or shares). On the other hand, their corporate tax rate is 8%, which can be higher than some other states’ rates if your sales exceed $250k per year but less than others if they don’t quite hit that mark yet but plan on doing so soon enough.
Another potential benefit of forming an offshore corporation in Nevada would be avoiding sales tax on goods sold within another country; however, this may only apply if those goods are sold directly through Amazon itself rather than via third-party sellers who purchase them from distributors here at home before selling them abroad themselves.
Must Read: 10 Cheapest States to Form an LLC
If you’re thinking about forming an LLC and you don’t live in the state where you intend to form the LLC, then there are plenty of good options out there.
The best state for non-residents will depend on your needs and goals. If you want to keep things as private as possible, go with Delaware. If you want a lower starting cost or fewer taxes, consider Wyoming or Nevada. And if you just want something that’s easy and hassle-free, South Dakota may be right for you!