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 Tax Rates
- Personal tax: NA
- Corporate tax: NA
Corporation tax act in American Samoa stands out because it has a 0% corporate tax rate to establish an LLC.
Florida LLC Tax Rates
- Personal tax: N/A
- LLC tax: 5.5% Florida LLC Tax Rates
- Florida LLC (limited liability company) is an LLC business entity in terms of management and flexible taxation. It is managed by members or managers and can be taxed as a pass-through entity. It also offers strong personal liability protection. To start an LLC in Florida, you must submit Articles of Organization to the Florida Division of Corporations and pay state filing fees. Choose a name for your business and appoint a registered agent. Forming an LLC in Florida takes between 10 days and 3 weeks, depending on the number of businesses that are filing at the same time.
- Business owners in Florida are subject to the state corporate income tax, which applies to all LLCs, corporations and other forms of businesses. The rate for corporate income tax is 5.5% for most entities, or 6.5% if the company’s net income exceeds $50,000. All entities classified as an S corporation will be subject to pass-through taxation rather than corporate income tax.
The LLC tax rate in Florida is based on net yearly income, as reported on your federal business income tax return. The state of Florida also has a minimum corporate tax due for all businesses regardless of current profits. The minimum corporate tax can be referred to as the ‘A Minimum’ or ‘B Minimum‘ and due when filing your annual return. The ‘A Minimum’ varies from $50, depending on total assets at the end of the year, while the ‘B Minimum’ cannot exceed $500.
Hawaii LLC Tax Rates
- Personal tax: 1.4-11%
- LLC tax 4.4-6.4%
- Hawaii LLC are business entity with strong personal liability protection, flexible management and taxation structures. To form a Hawain LLC, you must file Articles of Organization with Department of Commerce & Consumer Affairs and pay filing fee. You willalso need a business name and appoint a registered agent. Making an LLC in Hawaii takes between 3 to 10 business days, depending on how you file.
Indiana LLC Tax Rates
- Personal tax: 3.4%
- LLC tax: 8.5%
- An Indiana LLC is a business entity that provides its owners personal liability protection and a flexible management structure to members. LLCs are taxed as pass-through entities. Form an LLC in Indiana, you will need to file the Articles of Organization with the Indiana Secretary of State & pay filing fee. Choose a company name and a registered agent for a individuals LLC. Filing an LLC in Indiana only takes a day or could take around two weeks.
Illinois LLC Tax Rates
- illinois llc tax rate
- Corporate tax: 7.3%
- LLC tax: 3%
- An LLC is a business entity that benefits from a flexible management structure, pass-through taxation, and strong liability protection. To form an LLC in Illinois, you will need to file Articles of Organization with the Illinois Department of Business Services, Limited Liability Company Division & pay filing fee. Choose a company name and appoint a registered agent for your llc. Forming your LLC could take between three days and three weeks, depending on how you file and whether you pay for expedited processing.
Idaho LLC Tax Rates
- Personal tax: 1.6-7.8%
- LLC tax: 7.6%
- Limited liability company or LLC is a business entity with personal liability protection. LLC has pass-through taxation. LLCs also offer a more flexible management structure. To start an LLC in Idaho, you must file the Certificate of Organization with the Secretary of State and pay filing fee. You will need to decide on a name for your business and designate a registered agent. It can take between 7-10 days to start your LLC in Idaho, although you can pay extra to have your LLC filed within one day
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.