Compare States for Business Formation
Find the best state for your LLC or Corporation with our comprehensive state-by-state comparison tool. Compare costs, benefits, taxes, and requirements.
Popular State Comparisons
Most searched state-to-state business formation comparisons
Delaware vs Nevada LLC
Delaware vs Wyoming LLC
Nevada vs Wyoming LLC
California vs Delaware LLC
Texas vs Delaware LLC
Florida vs Delaware LLC
New York vs Delaware LLC
California vs Nevada LLC
Texas vs Nevada LLC
California vs Texas LLC
Florida vs Texas LLC
Colorado vs Wyoming LLC
Montana vs Wyoming LLC
New Mexico vs Texas LLC
Nevada vs New Mexico LLC
Compare Any Two States
Select states to see a detailed comparison
Popular Business Formation States
Delaware
Corporations seeking investment, businesses valuing legal precedent and privacy
Nevada
Businesses prioritizing tax savings and privacy, high-income entrepreneurs
Wyoming
Small businesses, asset protection seekers, privacy-conscious entrepreneurs
California
Tech startups, businesses operating in California, companies seeking investment
Texas
Growing businesses, companies relocating from high-tax states, energy sector
Florida
Service businesses, tourism-related companies, retiree-owned businesses
Low-Cost Formation States
State Comparison Matrix
Quick overview of all states
| State | LLC Fee | Corp Fee | Annual Fee | Processing | Compare |
|---|---|---|---|---|---|
| Colorado | $50 | $50 | $10 | 2-3 business days | |
| New Mexico | $50 | $100 | $0 | 10-15 business days | |
| California | $70 | $100 | $20 | 10-15 business days | |
| Montana | $70 | $70 | $20 | 5-10 business days | |
| Delaware | $90 | $89 | $300 | 5-7 business days | |
| Wyoming | $100 | $100 | $60 | 3-5 business days | |
| Florida | $125 | $70 | $138.75 | 5-10 business days | |
| New York | $200 | $125 | $9 | 5-7 business days | |
| Texas | $300 | $300 | $0 | 5-10 business days | |
| Nevada | $425 | $725 | $150 | 5-10 business days |
How to Choose the Right State
Key factors to consider
1. Where You Do Business
Most small businesses should form in their home state where they physically operate. Forming out-of-state means you'll need to register as a foreign entity in your home state, doubling your fees and compliance requirements.
2. Tax Considerations
States like Nevada, Wyoming, Texas, and Florida have no state income tax, but this only benefits you if you actually operate there. Your home state will still tax income generated within its borders.
3. Privacy Needs
Delaware, Nevada, and Wyoming offer strong privacy protections for business owners. These states don't require listing member names in public records.
4. Investment Plans
If you plan to raise venture capital or go public, Delaware is the gold standard. Most investors prefer Delaware corporations due to its well-established business laws and Court of Chancery.
5. Annual Costs
Don't just look at formation fees. Annual report fees, franchise taxes, and registered agent costs add up. Wyoming has low annual fees ($60) while Delaware LLCs pay $300 annually.
6. Business Type
Online businesses have more flexibility in choosing formation states. Physical businesses should typically form where they operate to avoid foreign qualification requirements.