5 Best States to Start an LLC

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1. Florida

Business Tax Climate Score: 6.85

Cumulative 10 Year Job Growth Rate: 38.8%

Florida is a very tax-friendly state and is therefore one of the best states to start a limited liability company. Florida does not impose a state income tax on limited liability companies, however, you may pay a sales tax on your products. The state filing fee for a limited liability company in Florida is $125. A single-member LLC will follow the same tax laws designated for a sole proprietorship. For a multi-member LLC setup, the taxes will automatically be treated like they are for a partnership. As for an S-corp, the LLC will be passed as an entity exempting them from corporate income tax. However, LLCs must pay an annual reporting fee of $138.75 in Florida.

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