Best Tax-Friendly States for Non-US Resident LLCs
Are you a non-US resident looking to establish a Limited Liability Company (LLC) in the United States? Choosing the right state for your LLC can significantly impact your tax burden and overall business operations. This guide explores the benefits of forming an LLC in a tax-friendly state for non-US residents.
Key Considerations:
No State Income Tax: Several states levy no income tax, meaning your LLC wouldn't be taxed on its profits. This is a major advantage for non-resident owners who wouldn't be actively generating income within the state.
Pass-Through Taxation: LLCs are considered "pass-through entities." This means the LLC's profits or losses "pass through" to the individual members' tax returns, avoiding double taxation. Look for states that don't tax income generated outside their borders.
Low Sales and Property Taxes: While not the primary concern for non-resident owners, states with lower sales and property taxes can offer additional cost savings.
Top Tax-Friendly States for Non-Resident LLCs:
Here are some of the most popular choices for non-resident LLC owners due to their tax-friendly structures:
Wyoming
Tax Advantages: No state income tax, pass-through taxation, and no corporate income tax for LLCs. This means your LLC's profits wouldn't be subject to state income tax, and any profits or losses would "pass through" to your personal tax return, avoiding double taxation.
Additional Benefits: Business-friendly regulations and a relatively inexpensive annual LLC fee.
Not Sure what State is right for you?
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