The advantages of incorporating in Wyoming or Texas.
Are you looking for the right location to open your business? You could pick any state in the US, but which one will provide you with the most benefits? Two states worth considering are Wyoming and Texas.
Wyoming Advantages:
Wyoming offers a more than favorable tax climate for new businesses!
In Wyoming, as a business owner, you do not have to pay:
personal income tax
corporate tax
excise tax
estate or inheritance tax
intangible tax
Not having to pay this set of taxes can allow your business to be more profitable in the long run.
Other advantages specific business owners can enjoy are the manufacturing sales tax exemption and sales tax exemption on electricity. These exemptions allow you to bypass sales tax on the sale or lease manufacturing equipment that is meant to be used directly in Wyoming to produce personal property items as well as on the power and fuel consumed by the manufacturing process.
There are various other advantages as well such as unlimited stock issuance and no minimum capitalization.
There are some slight disadvantages for incorporating in Wyoming, such as the fact that an LLC will be dissolved if one of the members passes away or if one files for bankruptcy. There is also usually more paperwork and administrative fees compared to other states.
Overall Wyoming is the place to go for starting your new business. All of the tax benefits make it worth your while!
Texas Advantages:
Texas also supplies a favorable tax climate for its businesses. There is no personal income tax in Texas! This means you don't have to pay taxes on the money you make for your business.
When it comes to business tax, as long as your small business doesn't exceed a certain threshold of revenue, you can avoid paying those taxes.
The state of Texas also offers the Texas Enterprise Fund for business owners. This fund is a game charger if you are looking to incorporate your business in Texas. It is a financial incentive where cash grants can be provided to your business projects if those projects will provide significant job creation or capital investment.
One of the only disadvantages of starting your business in Texas is that it can be a time consuming process. Corporations in Texas are monitored by local, state, and federal agencies, this means that the process will most likely take longer than other states that don't require as much paperwork and filings (but SMK can help with that!!)
Texas is a great option to consider for incorporating your new business as well. The advantages far outweigh the disadvantages!
There are other states across the US that are great for starting new businesses as well, but these two are definitely up there for you to consider.
SMK Business Solutions offers multiple services in both of these states to make your process of starting your business a breeze!
