Moving a corporation can be a long and difficult process that requires a lot of paperwork and patience. However, this process can be shortened, or remedied, by choosing to move your corporation to a state that has a favorable business environment. Though every state has different rules and regulations for businesses, these five states have proven themselves to be the best of the bunch.
1. Wyoming
Wyoming has one of the best tax laws out of all of the 50 states. Wyoming doesn’t have taxes for corporations, individual income, and or gross receipts. Additionally, businesses, in Wyoming, do not need to pay business license fees or officer filing fees.
Compared to other states, where you may need to provide company information and business information, Wyoming allows for any member of an LLC to bypass being included in a public database. Wyoming has developed processes for not only making it quick to form a corporation, within the state but simple for corporations to relocate their businesses to Wyoming.
2. Alaska
Alaska, a state with excellent fiscal health, does not have taxes on corporate incomes, individual incomes, or sales; allowing citizens to save valuable money. Oil money fuels Alaska’s economy, therefore less emphasis is placed on the state’s citizens for state funding. This all allows for business taxes to remain low and revenue to be higher.
When moving your corporation, it will be best to try and relocate your employees to Alaska, as well, because the state does not have many skilled employees. Your business may need to adjust to different hours of operations and seasonal sales.
3. Nevada
Nevada does not charge a variety of taxes for LLCs and, though you are moving your corporation, does not require corporations to be residents of the state. Additionally, Nevada’s low cost of living provides a cheaper home for corporations and attracts many skilled workers, who are looking for jobs in the state. Lastly, to attract businesses to the state, Las Vegas offers numerous tax incentives that make the state very lucrative.
4. Delaware
Delaware has a history of having one of the best court systems to deal with corporate issues. As a result, many investors prefer to invest in corporations that are incorporated within the state of Delaware. In addition to tax incentives that the state has to offer, the franchise taxes in Delaware are also lower than most states.
5. Texas
To attract businesses to the state, Texas does not have corporate or individual income taxes. In 2016, Texas had the second-highest gross domestic product (GDP) in the country. Supplemented with the state’s low cost of living, Texas is a very attractive state for both corporations and employees.
Each of these states will provide a great new home for your corporation. Known for a variety of great benefits, each state is corporation-friendly and offers incentives for businesses that would like to reside in the area. Assess what you will benefit from most when deciding to relocate your corporation.