For a Foreigner, forming an LLC in the United States, regardless of the State of Formation, can provide me 0% on my LLC federal income, as I explain here https://www.offshoreaffairs.com/post/united-states-llcs-and-c-corporation-incorporation
So for a foreigner, I have to make sure the State I pick does not sky rocks my tax liability, because incorporating in California will trigger a $800 tax bill in Franchise Tax (no, Franchise Tax is not a tax for franchises, it is just a way to call a yearly tax charged just for having a Company, regardless if this company is trading or no) or License Tax, sales taxes, no State Tax on Income,and other ongoing taxes.
Nevada is one of the few States with no State Tax, yet with a very low maintenace cost for LLCs.
What has Nevada to offer?
Tax Benefits
No Franchise Tax
No Franchise Tax
No Corporate Income Tax
No Taxes on Corporate Shares
No Personal Income Tax
Nominal Annual Fees
No Franchise Tax on Income
No Inheritance or Gift Tax
No Unitary Tax
No Estate Tax
Competitive Sales and Property Tax Rates
Minimal Employer Payroll Tax - 0.7% of gross wages with deductions for employer paid health insurance
Secrecy
Nevada's law makes it harder and more expensive for creditors to discover the ownership of my LLC.
Cost of LLC Formation (State Fees)
Articles of Organization: 75 USD.
State Business License: 200 USD.
Initial List of Managers or Managing Members: 150 USD. Total Cost: 425.
Annual Maintenance Fee (after first year/State Fees)
State Business License: 200 USD.
Annual List of Managers or Managing Members: 150 USD
Total yearly: 350
Formation Time
I can form my LLC in less than 24 hours, or even faster, via expedited process, this for an extra price.
If you wish to know the basics of offshore incorporation, visit here https://www.offshoreaffairs.com/post/offshore-company-incorporation-101
About the author: Jean Franco Fernández Clark. Corporate and International Tax Lawyer from Nicaragua, Central America. Speaks English, Spanish, French, Italian, Russian. 学习普通话
Disclaimer: Nothing in this article shall be considered a legal, financial, or tax advice. If you wish to obtain advice you should address a licensed tax consultant or attorney. We do not promote the USA and incorporations there in for illegal purposes or criminal activities. The publication of this article is for information purposes only and the content in this article comes from personal experiences and it is not by any means a legal or tax advice. Information may not be updated or correct.