By Susan Ward | Updated June 25, 2019
There are a few factors to consider when deciding where to form a Limited Liability Company (LLC). Factors including taxes, regulatory burden, workforce availability, and more. In this article we will explore the best states to form an LLC from an overall business climate perspective.
Like sole proprietorships or partnerships, an LLC is an unincorporated entity––income from the business flows through to the owners and investors as personal income. However, like a corporation, an LLC provides limited liability––owner(s) liability is limited to the amount of their investment in the company.
If you are considering setting up an LLC, the map below shows a breakdown of the 10 best and 10 worst states to form one. The rankings consider important factors like corporate tax rate, individual income tax rate, sales tax rate, average property tax rate, and unemployment rate by state.