LLC Tax Rates by State: Iowa, Kentucky, Kansas, Louisiana & Maryland

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 LLC 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 LLC tax rate 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.

Iowa LLC Tax Rate

Iowa LLC

Personal tax: 0.36-8.98%
Corporate tax: 6-12%
Iowa Limited Liability companies provide business owners liability protection, tax savings, and flexibility in their management structure. To start your Iowa LLC, you will need to file a Certificate of Organization with the Iowa Secretary of State, Business Services Division, and pay a filing fee. Choose your LLC name and designate a registered agent. The process of starting your LLC could take 1 day to 3 weeks, depending on how you file.

Kentucky LLC Tax Rate

Kentucky LLC

Corporate tax: 4-6%
Personal tax: 2-6%
Kentucky LLCs are common with business owners because they protect personal assets from business lawsuits and bankruptcy. LLCs simplify company taxation and have a flexible management structure. To create an LLC in Kentucky, you will need to choose a business name and appoint a registered agent. Finally, you will need to file Articles of Organization with the Kentucky Division of Business Filings.

Kansas LLC Tax Rate

Kansas LLC

Personal tax: 3.5-6.45%
Corporate tax: 4-7.05%
A Kansas LLC is a business entity that combines aspects of other corporate structures (like limited liability) with pass-through taxation and more flexibility for members. To start your LLC in Kansas, you will need to file your Articles of Organization with the Kansas Secretary of State and pay the filing fee. Before you can get your LLC up and out the door, you will need to give it a name and appoint a registered agent. Creating an LLC in Kansas can take anywhere from 1 to 5 business days, depending on how and when you file

Louisiana LLC Tax Rates

Louisiana LLC

Personal tax: 2-6%
Corporate tax: 4-8%
A Louisiana LLC is a widely used business entity that combines aspects of corporations/partnerships to protect business owners and their assets from potential lawsuits. To form an LLC in Louisiana, first, choose a name for the LLC, appoint a registered agent, and file Articles of Organization and an Initial Report with the Louisiana Secretary of State. You can file the document online or by mail (in some counties). Starting an LLC in Louisiana can take up to with to a week to be live, depending on how you file.

Maryland LLC Tax Rates

Maryland LLC

Personal tax: 2-6.25%
Corporate tax: 8.25%
A Maryland LLC (limited liability company) is a business entity that offers various management structures like pass-through taxation (by default), and the liability protection of personal assets. Before individuals can run your business, you will need to first give your business a name, designate a registered agent, and file Articles of Organization with the Maryland Department of Assessments & Taxation (SDAT). How much to start LLC in Maryland? The Articles of Organization cost $100 if filed by mail or in person and $155 for expedited online filing. Forming an LLC in Maryland takes between 1 to 6 weeks to officially form an 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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