Best States for Incorporating a Business
- Delaware: Takes one of the top spots as the best state to form LLC.
- Wyoming: According to the Tax Foundation’s 2022 State Business Tax Climate Index, Wyoming is the best state to form an LLC or corporation in 2022.
- Nevada: Top 3 states to incorporate in are Delaware, Wyoming, and Nevada.
Incorporating in Corporation-Friendly States
Incorporating in a corporate-friendly state is beneficial for corporations, with flexible laws, business breaks, and privacy. These states allow you to incorporate there, even if you don’t live or do business there. No matter where you incorporate, register as a foreign corporation in your home and operating state. You’ll need to keep up with tax obligations there.
Advantages of Incorporating in Washington State
Washington State is a nice state to incorporate in. There is no personal income tax here, but Washington levies a Business and Occupation tax of usually about 1.8% of your gross revenue.
Business Environment in Washington State
- Tax Climate: Economic experts rank WA state 35th in the nation in terms of a business tax-friendly environment.
- Small Businesses: Washington state hosts 608,956 small businesses that employ 1.4 million workers, representing 99.5% of all businesses.
Starting a Business in Washington
- Licensing: You need a license if you meet certain criteria such as requiring city and state endorsements.
- Support: SBDCs in Washington state provide no-cost, confidential, professional business advising.
Tax-Friendly Benefits in Washington State
The state offers the benefit of no corporation or personal income taxes and a low sales tax rate, making it one of the most business-friendly states.