Americans are resigning from their jobs in record-high numbers resulting in what economists are calling “the Great Resignation.” In fact, reports have stated that the labor market is so mismatched that the number of unemployed people is far outweighed by the number of job vacancies. With analysis attributing the job crunch to “old-fashioned entrepreneurship.”
Based on analysis of Census data by the Economic Innovation Group, just throughout the month of September alone, Americans have filed around 1.4 million applications to start new business ventures. With the fields of manufacturing and retail taking precedence over freelancers. This indicates a further increase in job creation since freelancers operate independently.
When registering a new business, there are a multitude of factors to take into consideration, and it is always advised that entrepreneurs seek professional assistance to ensure that they are able to complete the process seamlessly.
Utilizing an LLC Formation Services
Whilst it is possible to form an LLC on your own, it can prove to be a tedious task, especially if you are inexperienced and have not done it before. One option to this is to hire the skills of an attorney to form your LLC for you. However, this option can be rather high in price, and most startups lack the capital to cover the costs.
However, there is a 3rd option available that is more cost-effective than that of hiring an attorney whilst still providing expert assistance. This is to hire an incorporation service to file on your behalf.
If choosing to outsource an incorporation service, there are many reliable LLC services that are available online, and it is imperative that entrepreneurs conduct thorough research prior to committing to a company.
The registered agent that you pick will be able to assist with the entire filing process as well as provide solutions for any issues that may arise.
The Best States For Business Registration
Colorado
LLCs are in fact the most popular choice of business structure for startups in Colorado. This can be attributed to the fact that a Colorado LLC formation is simple to both startup and run, whilst providing a variety of benefits.
These benefits include premium asset protection for personal assets such as vehicles, property, and savings. The state is favored for having a tech-savvy workforce and a low unemployment rate. Entrepreneurs can expect to see a top corporate tax rate of 4.55% and a top individual income tax rate of 4.55%.
Delaware
Delaware has a long-standing reputation for being a very business-friendly state. They have a simplified filing process that encourages a speedy and efficient LLC setup.
Notably, the state imposes low fees and taxes and does not place any tax on out-of-state income for international LLCs. Businesses-related cases are also resolved a lot faster in Delaware due to the state’s Chancery Court, which focuses solely on business cases.
Nevada
When forming an LLC in Nevada, business owners find the lack of taxes very appealing. The state imposes a 0% corporate income, personal income, or franchise tax. Entrepreneurs need only pay their annual filing and business license fee.
Nevada’s privacy laws allow for anonymity in public filings and do not share information with the IRS. There is also no requirement to create an operating agreement to hold annual meets – which makes it easier to run an LLC out of state.
Wyoming
Wyoming does not impose corporate or individual income taxes; the state also has a low sales tax rate. Whilst striving to be business-friendly, the state keeps reporting obligations at a minimum. Similar to Nevada, there are no franchise taxes in Wyoming.
A unique feature of Wyoming is that they offer a lifetime proxy so that owners can remain as anonymous as they desire. The appointed proxy will represent the business owners’ stock or shares on their behalf.
Final Thoughts
Starting a new business is exciting, and it is essential that entrepreneurs not get carried away with the process. By utilizing an LLC formation company, the process becomes streamlined and manageable. Whilst we recommend Colorado as a top state for incorporation, it is important to assess and evaluate your own needs to accurately ascertain which state will be the best fit for your startup.
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