LLC Tax Rates by State: South Carolina, Utah, Texas, Tennessee & South Dakota

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

Personal tax: NA
Corporate tax: NA

American Samoa stands out because it has a 0% corporate tax rate to establish an LLC.

South Dakota LLC Tax Rate

Personal tax: NA
Corporate tax: NA
A South Dakota LLC is a business entity that grants its members personal liability protection from company debts. LLCs have various business structures and are taxed on a pass-through basis. To form a South Dakota LLC, you will file Articles of Organization with the South Dakota Secretary of State. But first, you will need to name your company and select a registered agent. It usually takes between 3-5 business days for the state to process your paperwork

Personal tax: 0-7%
Corporate tax: 5%
South Carolina limited liability company or LLC is a business entity that offers its members significant personal liability protection and pass-through taxation. The management structure of an LLC is changeable and simple to understand. To form an LLC in South Carolina, you will need to file Articles of Organization with the office of the South Carolina Secretary of State. You need to name your LLC and select a registered agent. State processes your paperwork within 1-2 business days if you file online and a few weeks if you file by mail.

Texas LLC Tax Rate

Personal tax: NA
Gross receipts tax: 1% on gross income exceeding $1,000,000
Texas LLC is a business entity that protects your personal assets from business-related debts. An LLC also offers a flexible management structure and certain tax flexibility. How to file LLC in Texas, you must file a Certificate of Formation with the Texas Secretary of State and pay a $300 filing fee. You will need to choose a name and registered agent for your LLC. It will take up to 40 business days to officially form your LLC.

Tennessee LLC Tax Rate

Personal tax: 7%
Excise tax: 6.5% of taxable net income
Franchise tax: 0.25% on the tangible value of the property
A Tennessee LLC limited liability company is a type of business entity that has asset protection, a flexible management structure, and many tax benefits. To create an LLC in Tennessee, you file Articles of Organization with the Tennessee Secretary of State, Business Services Division. The minimum filing fee is $300 (for LLCs with six or fewer members). After that, it costs $50 per additional member. So if you have twelve members, you will pay $600. But before you can file, you will need to choose a name and registered agent for your LLC. Once received, your articles will be processed between 1-10 days, depending on how you file.

Utah LLC Tax Rate

Personal tax: 5%
Corporate tax: 5%
A Utah LLC is a business entity that offers LLC owners limited liability asset protection, tax breaks, and a flexible management structure. To make an LLC in Utah, you must file a Certificate of Organization with the Utah Department of Commerce, Division of Corporations and Commercial Code, and pay a filing fee. You will need to select a name and registered agent for your LLC. It can take up to 7 days to officially form your LLC

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.

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