A Limited Liability Company (LLC) can be formed in the 50 United States and the District of Columbia. The states that are considered the best to form an LLC are the states of Delaware and Nevada.
The advantages of creating an LLC in Delaware include:
· Does not have residence or citizenship requirements to form an LLC.
· Franchise taxes are charged at low flat rates in all LLC.
· Sales tax on goods and services.
· It does not impose a corporate income tax unless you carry out commercial transactions in the State.
· You do not have an agreement for the exchange of information with the Internal Revenue Service (IRS). Note: If the IRS requests information about commercial records and issues a citation, this information will be returned to the IRS for the State of Delaware.
The advantages of forming an LLC in a state other than your originating status are:
· If your home state has high annual rates of LLC.
· Your company does not do business at your address.
The advantages of forming an LLC in your originating status are:
· Avoid paying franchise taxes and other government charges in addition to a state
· Avoid additional add-in expenses (called foreign titles) when you register a business in additional states.
Setting up an LLC to NV
States vary in their requirements and policies that imply the creation of a Limited Liability Company (LLC). Many believe that the State of Nevada, along with the State of Delaware, are the best states to set up an LLC.
Nevada is a particularly popular state for the rental of companies because it does this State no to own:
· Unique fiscal policy: The Nevada State has no corporation tax, corporation tax, franchise, personal income tax, property tax or inheritance tax.
· You do not have an agreement for the exchange of information with the Internal Revenue Service (IRS). Note: If the IRS requests information about commercial records and issues a citation, this information will be returned to the IRS for the Nevada State.
The Nevada State is also popular for forming LLC, since personal responsibility is limited to the owners of the LLC to the amount of their investment in the company; an LLC with two or more members is considered an association; And contractual flexibility because the Nevada law establishes rules on matters in which the members have not accepted.
Does it make sense to form an LLC in the State of Nevada if you do not do business in the State for the above reasons? No, because unless you are a Nevada resident that operates a business in Nevada, you will have to distribute business income between the states where your business operates. Basically, for smaller companies, it is best to form an LLC in the State where your business has more commercial contacts and performing the best.