What state is best to start an LLC: Michigan or Washington?

What state is best to start an LLC: Michigan or Washington?

December 29, 2023 12:26 PM
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The decision between Michigan and Washington for starting an LLC depends on several factors, including your specific business needs, long-term goals, and personal preferences. Here are some key considerations for both states:


  1. Business-Friendly Environment: Michigan provides a generally favorable business environment with various incentives, tax credits, and support programs to encourage entrepreneurship.
  2. Lower Starting Costs: Michigan has relatively lower startup costs, such as affordable filing fees and lower annual fees compared to some other states.
  3. Manufacturing Opportunities: Michigan has a strong manufacturing industry, which can provide potential business opportunities in this sector.
  4. Geographic Location: If your business involves transportation or logistics, Michigan's central location in the United States can be advantageous.


  1. Thriving Tech Industry: Washington, particularly the Seattle area, is known for its thriving tech industry, including companies like Microsoft, Amazon, and numerous startups. If your business is tech-oriented or wants to tap into this industry, Washington could be ideal.
  2. Skilled Workforce: Washington has a highly educated and skilled workforce, which can be advantageous for certain types of businesses.
  3. Unique Tax Structure: Washington does not impose a personal or corporate income tax, which can be beneficial for your business's bottom line.
  4. Progressive Business Environment: Washington is known for its progressive policies, sustainability initiatives, and supportive entrepreneurship ecosystem.

Ultimately, you should consider the specific advantages, disadvantages, and requirements of each state, along with your business needs, target market, industry, and growth plans to make an informed decision. It may also be beneficial to consult with an attorney or accountant specializing in business formation to get personalized advice.

January 10, 2024 9:45 PM