Starting a Business in Your State

Start Your Business The Right Way

When you decide to start a Limited Liability Company (LLC) or a Corporation, you can choose to form your company in any state, regardless of where you are based.

A non-U.S. resident, International Entrepreneur / Founder, a Digital Nomad with no physical presence in the U.S.A, has the luxury to pick and choose which state would be best to incorporate their business.

If you are a US resident, choosing the state to form your business can be complex, especially if you have a physical presence in your home state. In most cases, it is best to form an LLC or corporation in your home state if that is where you live and operate your business.

Forming a Company For An Online Business

When you’re planning to launch an Online Business you’re probably thinking of filing in Wyoming or Delaware. If you’re U.S. person (U.S. citizen or permanent U.S. resident) from a foreign state, you may find incorporating an online business in Wyoming or Delaware quite appealing because both states offer many advantages to the owners / shareholders.

“I work online”

If your business primarily operates online and is not tied to a specific location, it may be more beneficial to form a Wyoming LLC or corporation due to the stronger asset protection laws, anonymous ownership options, lower fees, and lack of state taxes. These factors can provide significant advantages for businesses that primarily operate online and may not be tied to a specific location.

“But I have an eCommerce Business…”

For a U.S. citizen or U.S. resident who are storing and selling goods or products online through an eCommerce site and/or marketplaces, and operating from their home state, it is generally recommended to file for a business entity in the location where the business is being conducted. That being said, many entrepreneurs opt to incorporate in Wyoming due to many benefits such as strict privacy laws, no state corporate and individual income tax and low business maintenance fees. Many eCommerce business owners who are concerned about their privacy in their home state also favor a Wyoming Holding Company.

It is important to carefully consider these factors and research the specific requirements and regulations in different states before making a decision on where to form a business entity.

Forming a Company For A Physical Store

When starting a business for a physical store-front, it is often suggested to consider states with low or no business taxes, or states with business-friendly laws such as Delaware or Wyoming.

However, it may be beneficial for small businesses, particularly brick and mortar companies, to form their business in their home state, where they will likely be conducting most of their operations. Forming your business in another state may not be a good choice if you are starting a small local business.

That being said, if you are concerned about the lack of privacy laws in your home state a Wyoming Holding Company may be a good option to consider.

Also worth considering:

No matter what type of business you are planning to start below are some of the things worth considering:

  • If your business is physically located in the state where you live and you conduct most of your business there, filing in your own state may be the best option because you may not have enough business in another state to make it worthwhile to set up there.
  • If you register your company in another state, but meet the definition of doing business in your home state (or any other state), you have to take the additional step of registering it as a Foreign Business Entity (also known as Foreign Qualification). 
  • Most people are unaware of this one simple fact: Taxes Are Paid Where Money is Made.

Companies form in one state but are legally required to register in any additional state they do business in (a process called “Foreign Qualification”). Now, every state varies a bit on what is considered “doing business,” but if you have a physical presence (like an office or warehouse) or employees in a state, you’re usually considered to be doing business there.

Pros & Cons of each state

Here is a quick look at the Pros & Cons of each State:




AlabamaCheap laborThe ONLY state where forming a business is a two-step process
AlaskaNo personal income taxMakes you disclose ownership of companies as public information
ArizonaLLCs don’t have annual reportsNew LLCs have to publish in newspapers
ArkansasLow income tax ratesHigh franchise tax report
CaliforniaLots of potential customers$800 minimum franchise tax payment
ColoradoOnline filings, processed instantlyAnnoying annual report system
ConnecticutNoneEverything is expensive and redundant
DelawareFamous for being home of many big holding corporationsHigh taxes for businesses actually operating in Delaware
District of ColumbiaLots of potential clients needing servicesDealing with the DLCP and business licensing departments
FloridaNo personal income taxJust don’t miss your annual report filing, it’ll cost you …
GeorgiaInexpensive feesPointless newspaper publication requirements
HawaiiLaid back attitude, easy-going lifestyleHigh gross receipts tax
IdahoNo fee for annual reportsFinding highly skilled and motivated employees
IllinoisNoneHigh taxes, high fees, stifling regulations
IndianaReasonable fees, reasonable taxesNone
IowaBiennial reports, low costsUnfortunately, there’s just not a lot of business in Iowa
KansasThe SOS is fast and helpfulCosts are fairly high compared to the rest of America
KentuckyCheap place to initially start a businessRedundancy, filing at the state level and then the county level.
LouisianaFriendly, helpful peopleRedundant, complicated procedures
MaineReasonable feesWeird/confusing lingo about clerks and commercial registered agents
MarylandLess regulatory than DCIt takes two months to process filings
MassachusettsThey’re actually good with their expedited filingsNo privacy for owners, high start-up costs ($500 to form a business and $500 to file the annual statement) and high corporate tax rates
MichiganTaxes are pretty low and office space is super cheap nowNot good for auto-makers
MinnesotaDoes not charge domestic businesses an annual report feeSlow to process your filings
MississippiNot a highly regulated stateHorrible filing fees for out of state, foreign business entities
MissouriAn inexpensive and reasonable place to do businessThe initial report after your initial filing is purely redundant
MontanaInexpensive, quick filingsNone
NebraskaLow start-up costsThey require original inked signatures, so 1980’s…
NevadaGreat asset protection rulesIt’s become very expensive and over-regulated
New HampshireNo sales taxOriginal signatures required, slow to process filings
New JerseyNoneMinimum $500 tax, plus prepay 1/2 for the next year
New MexicoGreat laws for LLCsTheir foreign corporation annual reports are awful
New YorkNoneIt’s the second worst state to do business in
North CarolinaNoneThey deny some filings for weird reasons
North DakotaLots of opportunity these daysTheir infrastructure has yet to catch up
OhioNo annual reportsThe Department of Revenue is confusing
OklahomaA reasonable and cheap place to do businessSome confusing regulations, filings and procedures…
OregonNo sales taxHigh income taxes
PennsylvaniaNo annual reportsLots of high fees and paperwork
Rhode IslandNoneHigh fees, high taxes, minimum tax payments
South CarolinaLow taxes, no annual reportsThey’re kind of slow, and require original signatures
South DakotaNo personal income taxVery aggressive Department of Revenue
TennesseeNoneHigh filing fees and taxes
TexasGreat for small businessesThe SOS charges $1 for name searches
Utah5% income tax, $70 to start your businessThey send EVERYTHING to your registered agent
VermontLow cost registrations and annual feesOriginal signatures required, confusing forms
VirginiaIt’s a little better than DCHigh taxes and fees for big corporations
WashingtonNo personal income taxOver-regulated
West VirginiaEasy and reasonable state to do business inNone
WisconsinNoneHigh fees, weird procedures and the foreign corp. annual report is not good
WyomingLow taxes, fees, strict privacy and great asset protection lawsNone

(A.K.A. Anonymity Planning Or How to Avoid Exposing Your Company to Potential Creditors)

Wyoming Holding Company and Setting Up Structures

A holding company provides benefits which are impossible to provide via a single business entity. Holding companies are created the same way other companies are, and may be either LLCs or Corporations. Instead of engaging in operations, they merely own and control other companies and assets.

Forming a Wyoming Holding Company(s) can offer many benefits including providing anonymity where possible, isolating liabilities and minimizing taxes when feasible. The Wyoming Holding Company can engage in operations via multiple business entities (subsidiaries or sister companies) when needed. Assets may also be loaned or leased to third parties.

This advanced business model, also known as Setting Up Structures, requires some effort to setup but the resulting benefits more than pay for themselves.

In more simple terms, Setting Up Structures means using an entity that’s been setup in Wyoming to hold all of your other business interests where you are engaging in passive activities.

Anonymity Planning

While it is generally more advantageous to form your LLC or Corporation in your home state, there may be situations in which the lack of privacy and anonymity offered by your home state presents a concern. If the public disclosure of information regarding business owners, members, shareholders, and directors is a concern, it may be necessary to consider alternative options that offer greater privacy protections. Wyoming Holding Company can be real and beneficial business tool part of the Anonymity Planning thanks to the strict privacy laws of Wyoming.

Anonymity Planning is a business strategy that allows you to protect the privacy of your business affairs with all the other benefits of Holding Companies. Setting Up Structures by creating Holding Companies is a major part of Anonymity Planning.

Anonymity Planning involves the strategic creation of business structures, such as forming an LLC (The Wyoming Holding Company) in Wyoming and then establishing another LLC or corporation (The Operating Company) in your home state. The Wyoming Holding Company that you first formed will become the shareholder or member of your other LLC or Corporation in your home state.

Who Uses Holding Companies and Anonymity Planning?
  • Real Estate Investors: Owning and renting real estate is inherently risky. Separating property management from the real estate can prevent catastrophic losses from slip and fall and other frivolous lawsuits. Follow our link to learn more about real estate holding companies.
  • E-Commerce: Opening subsidiaries for different product lines not only isolates risk, but makes it easier to sell product lines individually.
  • Families: One holding company makes it easier to manage disparate interests in other companies and assets. It also allows for the filing of a consolidated return.
  • Estate Planning: Rather than the effort of an estate plan, some choose to pass assets on via an LLC. While we always recommend an estate plan, generally using a trust, we know some clients do view this as a more affordable option.
  • Other Risky Industries: Any industry with risky but valuable assets. Those assets should be owned by one company and operated by another. See our examples below for more details.

While LLCs and Corporations may both be used for a Wyoming Holding Company, for most U.S. owner(s) we recommend Wyoming Anonymous LLC for a Holding Company.

Forming a Wyoming Holding Company as a Wyoming LLC or a Wyoming Corporation is no different than forming the same type Wyoming business entity and you can hire us to form the business entity for you.

Anonymity Planning by Setting Up Structures requires careful planning and execution by a Professional Business Attorney. This advanced business model is tailored to meet the specific needs and circumstances of your business. While implementing Anonymity Planning may involve additional costs, such as the formation of multiple companies in different states and the involvement of a Professional Business Attorney, it is worth considering if maintaining anonymity is a priority for your business.

You may hire us to form a Wyoming Holding Company for you but we strongly advise against trying to implement Anonymity Planning by setting up structures without the involvement of a Professional on your own, as one small mistake may render the business model useless and can be costly as a result.

For more information on Anonymity Planning, please feel free to contact us or click the button below to find out more.

How Triple B Business can help in starting your new company?

The fastest, easiest way to start your new company? Hire us and get everything you need: registered agent service, privacy, free mail forwarding, and the guidance of local experts.

We currently offer Business Formation Services only in the States of Wyoming and Delaware because these two great states offer multitude of advantages to new small business owners.

Here’s how you can start the process with Triple B Business today in 3 easy steps:


Tell Us Your Business Name

If you have already decided your new business name then simply enter it on our form. We will perform a free name search for you with the state.


Answer A Few Questions.

Answer a few questions and enter the required information on our business formation form. If we have any questions then we will get back to you.


We Will File Your Paperwork

We will complete your paperwork and be off to the races filing your new company with the state.

WE HAVE Answers

Ask Us Anything

When choosing a name for a business in the United States, it is important to consider a few key factors including availability, distinctiveness, legality and branding.

If you are setting up a Limited Liability Company (LLC) or a Corporation, you will also need to include a designator (suffix) in your business name, such as “LLC” or “INC.” This will help to differentiate your business from other types of legal entities.

Please click here to find out more.

It is not easy to determine which type of business entity, an LLC or corporation, is best for you as it depends on multiple factors such as your business goals, the nature of your business, and your individual circumstances.

If you are a U.S. person / U.S. resident please click here to find out more.

If you are a non-U.S. person / non-U.S. resident please click here to find out more.

Wyoming is a leading incorporation domicile due to low fees, no taxes, simple filing and maintenance requirements along with allowing anonymous LLCs and corporations.

For more information please click here.

If you are a U.S. resident not living in Delaware or Wyoming, the best state to form your business depends on various factors. Typically, it’s advantageous for a U.S. citizen or permanent resident to form the business entity in their home state. However, for most businesses forming a company in Wyoming is also a great choice.

If privacy and anonymity are important to you, forming a Holding Company in a state like Wyoming may be a better choice. Holding Companies can choose their domicile as they are only considered as transacting business if they engage in activities beyond holding assets and leasing them.

For further information, click here.

Common choices for a holding company (a.k.a parent company) are Wyoming, Nevada, Delaware and New Mexico. Wyoming is currently the leading state to form a Holding Company (LLC or Corporation) due to the specific statutes, anonymity, asset protection and comparatively low fees.

Please click here to find out more.

In order to incorporate in Wyoming, you need to have a company name, business address, registered agent, share count, par value, and incorporator. These are the only requirements by law to establish a corporation.

For more information please click here.

Yes, as a non-U.S. person / Non-U.S. resident / International Entrepreneur / International Founder / Digital Nomad you can form an LLC or C-Corp in the United States. In fact, it is not even necessary to physically visit the U.S.A, as it is possible to set up your LLC or C-Corp online.

Please click here to find out more.

You don’t need an SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number) to get an Employer Identification Number (EIN) from the IRS. An Employer Identification Number (EIN), also known as a Federal Tax Identification Number or a Federal Business Tax ID, is used to identify a business entity not an individual. You only need an SSN (or ITIN) if you want to apply for an EIN online with the IRS.

We have business formation packages for Non-U.S. owner(s) that includes EIN application for a discounted fee of $150. You can also hire us to obtain your EIN from the IRS for a fee of $175.

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS) for individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security Number (SSN) from the Social Security Administration (SSA). ITINs are issued to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs.

The first step is to get an EIN from the IRS. You cannot open up a U.S. bank account without an EIN for your LLC or Corporation.

The easiest option is to opening up a business bank account online with a Fintech company like Mercury, Novel etc.

Another solution is to visit the United States yourself.

For other options and more information to open up a U.S. business bank account please click here.

Wyoming is a leading incorporation provider with low fees and no corporate income taxes. Delaware is generally only used by those raising venture capital or looking to go public.

For more information please click here.

Don’t Wait

Contact Us For A Free Consultation