How LLC are Taxed
As an LLC startup owner, the last thing you want is to complicate your taxation. Since the considerations and requirements of tax rates vary from state to state. In simple terms, the tax rates of each state are represented in annual percentages as corporate taxes.
It is also important to understand that tax rates do not always stay the same and are subject to changes in line with new federal and state laws. For instance, these changes usually have an impact on deductions and exclusions.
Here isan overview of the corporate and personal LLC tax rates in each state: How LLCs are Taxed
American Samoa
- Personal tax: NA
- Corporate tax: NA
American Samoa stands out because it has a 0% corporate tax rate to establish an LLC.
Massachusetts LLC Tax Rate
Massachusetts LLC
- Personal tax: 5.3%
- Corporate tax: 9.5%
- Massachusetts llc tax rate is a business entity that provides limited liability to its owners (called members) and flexible taxation and management options. To file an LLC in Massachusetts, you will need to appoint a registered agent, choose a business name, and file a Certificate of Organization with the Massachusetts Secretary of the Commonwealth online or by mail. Filing an LLC in Massachusetts costs $500.
Maine LLC Tax Rate
Maine LLC
- Personal tax: 2-8.5%
- Corporate tax: 3.5-8.93%
- A Maine limited liability company is a type of business entity that offers a flexible management structure, simplified taxation, and personal asset protection. To start an LLC in Maine, you will need to choose a business name, appoint a registered agent, and file a Certificate of Formation with the Secretary of State Division of Corporations, UCC & Commissions. Maine is behind the times, so they will only accept filings by mail or in person. The filing fee is $175 for standard processing.
Minnesota LLC Tax Rate
Minnesota LLC
- Personal tax: 5.35-7.85%
- Corporate tax: 9.8%
- A Minnesota LLC is a common business entity type that provides liability protection to its owners, has a flexible management structure, and can be taxed either as a pass-through entity or a corporation. To form an LLC in Minnesota, you will need to file the Articles of Organization with the Office of the Minnesota Secretary of State and pay the $135 filing fee ($155 online). First, you will need to decide on a business name and designate your registered office. We will take you to step by step through the process of forming your LLC.
Michigan LLC Tax Rate
Michigan LLC
- How to start an llc in Michigan
- Personal tax: 4.35%
- Corporate tax 4.95%
- Michigan LLCs are commonly used business entities, formed at the state level, that offer various management, pass-through taxation, and personal asset protection to LLC owners. You must first do 3 things: choose a registered agent, choose a name for your LLC, and file Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA). You can file LLC the document online or do a LLC michigan search by mail or in person.
Mississippi LLC Tax Rate
Mississippi LLC
- Personal tax: 3-5%
- Corporate tax: 3-5%
- Mississippi Limited liability companiesare flexible company structures that provide business owners with extra liability protection and tax advantages. To form an LLC in Mississippi, you need to file a Certificate of Formation with Mississippi Secretary of State and pay filing fees. This is done after you have chosen a name for your LLC and selected a registered agent. Mississippi LLC takes just 24hours to around a week if you freceivee your approval from the State.
Sum Up
Remember that the states that do not mandate income tax include Florida, Tennessee, Texas, Nevada, Alaska, Wyoming, and Washington. In retrospect, if you plan to start an LLC, focus on corporate taxes and opt for the state that has little to no corporate taxation in place.
Like the best states, American Samoa offers a wide range of tax benefits to start an LLC. From the initial process to form an LLC online, to availing tax perks to optimizing operations, American Samoa serves as a solid option.
American Samoa is the best state to form LLCs in 2022. Find out more information on how simple, efficient, and cost-effective it is to start an LLC in American Samoa and how it provides more added tax perks than other American states.