Introduction
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 is an overview of the corporate and personal tax rates in each state:
American Samoa LLC
- Personal tax: NA
- Corporate tax: NA
American Samoa stands out because it has a 0% corporate tax rate to establish an LLC.
New York LLC
- Personal tax: 4-8.97%
- Corporate tax: 7.1%
- A New York limited liability company is a business entity that offers strong liability protection, flexible management structure, and certain tax advantages. To start an LLC in New York, you will need to file Articles of Organization with the New York Division of Corporations, State Records, and Uniform Commercial Code, pay the filing fee, and publish notice of your LLC in two New York newspapers. But first, you should choose a name and a registered agent for your LLC. Creating an LLC in New York can take anywhere between a day and a month, depending on how you file, but fulfilling the publication requirement will take at least 6 weeks.
New Mexico LLC
- Personal tax: 1.7-4.9%
- Corporate tax: 4.8-7.6%
- A limited liability company is a business structure formed at the state level that provides its owners flexible tax and management options along with personal liability protection. To form an LLC in New Mexico, you will need to complete a form called Articles of Organization and file it with the New Mexico Business Services Division with the $50 filing fee. Before you fill out the form, you will need to choose an anonymous LLC New Mexico name and appoint a registered agent. In New Mexico, Articles of Organization must be filed online and take between 1-3 business days to process.
North Dakota LLC Tax Rate
North Dakota LLC
- Personal tax: 1.84-4.86%
- Corporate tax: 4.1-6.5%
- A North Dakota LLC is a type of business entity that protects company owners from being held personally liable for business debt. LLCs are taxed as pass-through entities and have a flexible management structure. To open an LLC in North Dakota, pick an LLC name, designate a registered agent, and file Articles of Organization with the North Dakota Business Registration Unit. You can file the document by mail, fax, or online. File Articles of Organization and can take up to 3 weeks to get approved.
North Carolina LLC Tax Rate
North Carolina LLC
- Personal tax: 6-7.75%
- Corporate tax: 6.9%
- A limited liability company is a business structure with strong liability protection, adaptable management options, and certain tax advantages. To officially form an LLC in North Carolina, you will need to file Articles of Organization with the North Carolina Secretary of State and pay the $125 filing fee. But before you can complete the form, you need to choose an LLC name and registered agent. North Carolina will process your Articles of Organization in 3-5 business days.
New Hampshire LLC Tax Rate
New Hampshire LLC
- Personal tax: 5%
- Corporate tax: 8.5%
- A New Hampshire LLC is a business structure characterized by a flexible management structure, pass-through taxation, and strong personal liability protection. To officially start your New Hampshire LLC, you must file a Certificate of Formation with the New Hampshire Corporations Division and pay a filing fee. You must choose a unique LLC name and appoint a registered agent. Starting an LLC in New Hampshire can take between two days and three weeks, depending on how you file
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 create 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.