Wyoming tops the list for best states in which to start up a limited liability company, according to recent research conducted by small business advice company Venture Smarter.
Venture Smarter ranked all 50 states and Washington, DC, based on LLC annual fees, LLC filing fees, average LLC agreement bid costs, advertising and publishing costs, tax climate index scores and number of small businesses per 100,000 residents.
“Forming a limited liability company in Wyoming can be a great way to protect your assets. The state is one of the most business-friendly states in America, and forming a limited liability company is relatively easy,” a spokesperson for Venture Smarter said in an emailed press release.
The state of Wyoming scored 96.12 out of a possible 100 points. The total LLC startup costs in Wyoming for the first year are $160, making it the least expensive state to start up an LLC. Wyoming’s tax climate index score is 78.33 out of 100, with an annual LLC fee of $60 and an LLC filing fee of $100. Entrepreneurs looking to set up an LLC in Wyoming do not need to pay LLC agreement bid costs or advertising costs for publishing and certificate of publication.
Florida ranked second among the states for starting an LLC, scoring 80.95 out of 100 points overall. Florida’s total LLC startup costs are a total of $264, with $125 of the LLC filing fee and $139 for the annual LLC fee. Additionally, entrepreneurs looking to set up an LLC in Florida do not need to pay LLC agreement bid costs or advertising costs for publishing and certificate of publication.
At the bottom of the list are New York and California.
New York scored 17.49 out of 100. Total LLC startup costs in the Empire State are $1,985. The filing fee is $200, and the LLC annual fee is a mere $5, but those wanting to start a business are required to pay an average $1,030 for an LLC operating agreement and $750 in advertising costs for publishing and the certificate of publication.
California ranks last, according to the research. The Golden State scored only 18.46 out of 100. The total cost for the first year for an LLC in California is $1,950.
