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

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

December 28, 2023 3:12 PM
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The choice between Washington and Missouri as the best state to start an LLC depends on various factors such as business requirements, preferences, and long-term goals. Here are some key points to consider:

  1. Business Environment: Washington is known for its thriving technology industry, with businesses like Amazon, Microsoft, and Starbucks headquartered there. It has a robust economy, access to venture capital, and a highly skilled workforce. Missouri, on the other hand, has a diverse economy with strengths in agriculture, manufacturing, and services.
  2. Taxes: Both states have different tax structures. Washington does not have state income tax, which can be advantageous for businesses and individuals. It relies on sales tax and business and occupation (B&O) tax. Missouri has a state income tax but offers various tax incentives and exemptions for small businesses.
  3. Regulations and Ease of Doing Business: The ease of doing business can vary between states. Typically, Washington has a reputation for having more regulations and bureaucratic processes, especially for some specific industries. Missouri is generally considered business-friendly, with simplified procedures and lower regulatory burdens.
  4. Industry Considerations: Consider the nature of your business and its compatibility with the state's industry ecosystem. For example, if you're involved in technology, software development, or e-commerce, Washington's thriving tech scene might be more suitable. Conversely, if your business aligns with Missouri's key industries, such as agriculture, manufacturing, or transportation, it may make more sense to start there.
  5. Market Access: Evaluate the proximity and access to your target market or customers. If your target market is primarily within Washington or the West Coast, it could be advantageous to establish your LLC there. Similarly, if your target market is within the surrounding region or the Midwest, Missouri might be a better choice.

Remember to consult with a business attorney or tax professional to fully understand the implications for your specific business and legal requirements before making a decision.

December 29, 2023 11:22 AM