5 Best States to Start an LLC

3. Utah

Business Tax Climate Score: 5.64

Cumulative 10 Year Job Growth Rate: 38.8%

Utah is another great option to start a limited liability company. It is comparatively easier to file an LLC and carry out paperwork in Utah, primarily due to established LLC laws at the state level. At a business level, the entity does not have to pay any federal taxes. However, LLC members must pay federal and state personal income tax along with a self-employment tax. The formation costs of a limited liability company in Utah are as low as $76.