Top U.S. states for business in 2021
There are 50 states in the United States, all of which are interesting to businesses in their own way. Each state, in addition to the federal one, has local laws that set or waive fees at the state level. If you have decided to open a company in America, you should find out in advance which U.S. states for business are the most attractive in 2021.
What does the choice of state depend on
Before deciding on a place to register a company, you need to answer these questions:
- Will there be a physical presence (warehouse, office, store)? If yes, we recommend opening a company in the region where they will be located. Otherwise it may happen that the license obtained in one state will be invalid in the right one.
- You will market in 1 or more states.
- What are the fees for registering a business in the region, and what do they include?
- Specifics of taxes in the region. For example, in Nevada you don't have to pay for corporate income, but it has one of the highest sales taxes (8%).
- Features of the judicial and legal systems.
- The attractiveness of the region for investors.
- Features of doing business for non-residents.
Top 4 U.S. states for business
If your company will only be operating from overseas, we recommend registering in Delaware, Nevada, or Wyoming. If the company's office will be in the country, South Dakota is on the top list.
Opening a company in Delaware is one of the best options. Its advantages:
- You don't have to pay a profit fee, but there is a fixed franchise fee of $300 a year (the amount can be different, depending on the type of business and cash turnover).
- State law protects businesspeople's personal assets from creditors.
- Shareholders or directors do not have to be a resident of the United States.
- One person can be a shareholder, director, officer.
- The details of the directors of the company can be kept private.
- There are no fees on intangible income.
- There is no minimum share capital requirement.
- Delaware has a Court of Chancery that can resolve difficult business disputes quickly and transparently.
Registering a company in Nevada is another good option, but there's a nuance. On the one hand, thousands of businesses open here every year; on the other hand, the jurisdiction is viewed with suspicion because of the large number of fraudulent companies.
Advantages of Nevada:
- Corporate and individual income tax - 0%.
- Sales tax - 6.85-8.26%.
- Property tax - 0.77%.
- Franchise fee - 0%, but business license required.
- High confidentiality - lists, minutes, other information is not public.
- Shareholders and directors can be non-residents.
- There is no minimum authorized capital.
Registering a company in Wyoming in 2021 is an option that would suit everyone. It has the most comfortable tax climate in the country for individuals and businesses:
- corporate tax - 0%;
- 0% individual income tax;
- sales tax - 4%;
- the average effective property tax rate 0.61% (U.S. figures are 1.19%).
Opening a company in South Dakota is also an option to consider. The state boasts zero corporate and personal income taxes. Sales tax is 4.5% and property tax is 1.32%. The unemployment rate is 3.5%, so finding staff here is easier than in other states.