You have made the decision to open a company in the United States. Which state to choose for company registration? Which one is the most suitable for running a business?
So, you have made a decision to start a new or expand an existing business in the USA, in a word - to enter the American market as an American company, having found out that it is not so difficult and fast enough.
At this stage, you are faced with a question of choice:
- Which company format to choose - LLC or C-Corporation
- In which state to open a company
We will talk about the advantages and disadvantages of each type of company in another article, now we will talk about several states that are the most convenient and friendly for doing business, namely: Delaware, Nevada and Wyoming.
First of all, I would like to note the fact that the company should be opened in the state where you are going to be physically present, for example, in the form of an office, warehouse or store. This is natural. If you registered a company in Wyoming, and open an office in New York, you will have to obtain Foreign Qualification, which will lead to unnecessary costs. That is, if you want to open a company office or a pizzeria in New York, then the company should be registered in New York.
If your business does not provide for a physical presence, but is conducted online, such as web design, website promotion, online marketing and other activities, then you should pay attention to the three above-mentioned states: Delaware, Nevada, Wyoming.
And now we will try to dispel the prevailing stereotypes about business in these states a little.
Everyone has heard such a concept as the Delaware Corporation - yes, 5-10 years ago, Delaware was the most convenient for doing business, and many well-known startups were registered there. Delaware is a good enough state to run a business, but it is expensive to maintain:
Unlike Wyoming and Nevada, it has a State Corporate Income Tax. Also, the state tax is $ 350 per year versus $ 50 in Wyoming. Also, in Delevere you will have to submit reports on a quarterly basis, and in Wyoming, the first report is submitted a year after the registration of the company.
Therefore, we recommend that all US business start-ups register a company in Wyoming, as the "cheapest" state in service and the most business-friendly state.
You can independently study the comparison table for these three states and make your own decision.
P. S. Nevada, like Delaware about ten years ago, was the most successful state for a new business, but now the situation has changed - it is expensive to maintain and as a side effect of popularity, a lot of gambling business was opened there, and as a result, many financial institutions categorically refuse to service when contacting companies registered in Nevada, although they have nothing to do with the gaming industry.
