- Why Non-Residents Need a Virtual Address for Their LLC
- Key Factors for Choosing a State for LLC Formation
- Top States for Non-Resident LLCs (with Pros and Cons)
- Benefits of Using a Virtual Address for Your LLC
- Why Alliance Virtual Offices is the Best Choice
Q: Which states are most favorable for non-resident LLCs?
A: Business registration trends in the past few years show that Delaware, Nevada, Florida, and Wyoming are the top states for LLCs in the U.S. This article explores the factors influencing the rise in popularity of virtual address for LLC registration for non-residents in these states.
For many business owners and entrepreneurs aiming for long-term success, establishing an LLC isn’t just a matter of “how to” but also “where to.”
Ordinarily, it makes sense to establish your business in your city.
But when you start considering factors like tax rates, business policies, annual local and state fees, and business survivability rate, among other factors, you may realize that you are better off forming your LLC out of state.
Many business owners and entrepreneurs have gone through this thought process and found that, indeed, there are some states with far friendlier business policies and taxes than theirs.
Some of these states now hold universal recognition as the best states for LLC formation in the U.S. Consequently, there is a huge rise in the number of foreign or non-resident LLCs formed in the U.S.
At the center of it all are LLC virtual office solutions providing these business owners and entrepreneurs with prestigious business addresses they could use to meet legal compliance requirements and quickly register their businesses in these states.
In this article, we explore why you might need a virtual address for your LLC formation in other states and the key factors to consider when choosing a state.
More importantly, we’ll explore some of the best states for LLC formation in the U.S. and why Alliance Virtual Offices is the go-to provider for the best virtual addresses.
First things first, why do you need a virtual address?
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Why Non-Residents Need a Virtual Address for Their LLC
A professional business address is one of the primary requirements for filing Articles of Organization for an LLC in the U.S., according to the U.S. Small Business Administration.
This requirement is applicable in all states, even in states that allow for anonymous LLCs.
As a non-resident, getting a virtual address is the fastest, cheapest, and easiest way to meet this requirement. You don’t have to waste more time looking for a physical office or map out a large sum to rent and manage a physical office.
Hence, whether you live in another state or entirely outside the U.S., you can take advantage of virtual addresses for your LLC registration.
By extension, the virtual address helps protect your privacy and strengthen your brand’s credibility by establishing a local presence that makes your business more accessible.
You can take things a step further by leveraging additional virtual address services, including mail forwarding, digital mail handling, on-demand meeting rooms, local VoIP business phone numbers, and live receptionist services to create a full-office experience.
Now, we know that virtual addresses are essential for non-resident LLC formation, but how do you find the best state for U.S. LLC formation for non-residents?
Key Factors for Choosing a State for LLC Formation
There are various factors to consider when choosing a state for LLC formation. The highlights below sum them up:
State Taxes
If you have ever managed a business in a state that imposes multiple taxes all at once, including corporate, income, and sales taxes, you’d know the financial burden could be worrisome.
Taxes quickly eat into the money you could’ve spent on critical business growth strategies.
In this case, the best states to get a virtual address for your LLC are those with low or no income tax, corporate tax, and sales tax. That way, you save more money for running your business.
Annual Fees and Compliance Costs
Here, you have to consider the cost of filing for LLC formation in the given state and whether you have to pay for additional licenses after the filing.
Many states have filing fees that fall within the $100-$200 range. However, you’d also find some with fees as high as $400-$500.
Some states require that you meet some annual obligations with the office of the Secretary of the State. One such obligation is the annual report. The fee for an annual report and similar compliance requirements varies greatly across states.
Ease of Registration for Non-Residents
How easy is it to register your LLC as a non-resident in the given state?
For some states, it’s as simple as using your local ID, a virtual address for the LLC, and a registered agent to file your articles of organization. You don’t even have to visit.
For some others, you have to provide proof of residency before they would consider your LLC application.
Before you decide, confirm that you meet all the business registration requirements in the states where you choose.
Business-Friendly Policies and Support
From asset protection and privacy protection to state-backed business growth resources, various states have measures in place to ensure that the investments of non-resident LLCs are protected.
More importantly, they have provisions to ensure non-resident LLCs have access to key resources and breaks they need to operate optimally in the local market.
States that lean in this direction usually have an enviable business environment that attracts non-residents from far and wide, making the states a thriving business hub.
Wondering which U.S. states meet some of these criteria?
We’ve assessed and highlighted the best states for LLC formation in the U.S. below to help you make a quick decision.
Top States for Non-Resident LLCs (with Pros and Cons)
Some states have made a name for themselves as the go-to states for foreign or non-resident LLC address purposes, mostly because of how easy it is to start a business in those states.
Here, we will look at the four best states for LLC formation.
Delaware
Delaware is #2 in the ranking of 2023 business applications per capita, according to the U.S. Chamber of Commerce. This is an indication that a relatively significant number of new businesses are making their way into Delaware’s economy.
In part, the influx of new businesses is because of the ease of doing business in the state.
Delaware is very popular for its business-friendly judicial system, championed through the Court of Chancery, which has a friendly legal approach that’s famous for resolving business cases within weeks.
As a small business owner, you may be more interested in the legal shield the state offers for the protection of personal assets of business owners from creditors.
But that’s just the cherry on top.
There are a lot more pros to establishing your LLC in Delaware:
- The state doesn’t require proof of residency when forming an LLC—you don’t even have to visit it, ever. Once you have elected a registered agent to act on your behalf in the state, you are good to go.
- Delaware is one of the very few states that allow anonymous LLCs. This means you can choose to keep the personal information you used to set up the LLC private, away from the prying eyes of the public.
- Delaware does not impose a state sales tax on out-of-state LLCs, neither does it impose income tax on income generated outside its borders. You also don’t have to pay taxes on shares.
Cons:
- Delaware has an 8.70% corporate income tax rate for the income you generate within its borders.
- Requires dual registration for non-resident LLCs.
Fees:
- Delaware has an annual state fee (franchise tax) set at a $300 flat rate. The fee may vary depending on your business’s turnover.
- $110 filing fee
Irrespective of these downsides, Delaware remains one of the all-time favorites for LLCs looking for a flexible business environment.
Wyoming
Don’t be deceived by how laid back the Cowboy State appears; it is gathering a lot of buzz in business communities as one of the best states for LLC formation.
In fact, being laid back may be one of Wyoming’s superpowers, as its laws and policies make establishing a business and running operations very easy for non-residents.
As of 2023, it held the #1 position in the ranking of 2023 business applications per capita, welcoming over 58,000 business applications from within and out of state. In 2024, it received 59,541 more applications.
What makes Wyoming so attractive for non-resident LLC addresses?
Pros:
- Low tax rate: With 0% corporate income tax and 0% personal income tax, Wyoming has one of the lowest tax rates. It is one of the most tax-friendly states for businesses and business owners.
- Privacy: Wyoming is one of the four states that allow the establishment of anonymous LLCs; the state protects the privacy of business owners.
- Requirements: Wyoming does not require an operating agreement or impose additional business licenses.
- Asset protection: State laws do not allow creditors to seize your personal assets—personal creditors can’t seize your LLC assets either.
Cons:
- Wyoming has an average 5.44% state and local sales tax rate.
- Compared to Delaware, which hosts a substantial number of larger businesses due to Delaware Corporate Shield policies, Wyoming has a very low concentration of larger businesses. Consequently, business growth might not be as exponential. This is also influenced by the fact that Wyoming has a low population, which results in generally low clientele.
Fees:
- $100 filing fee ($102 when filed online).
- A minimum of $60 annual report/compliance fee.
Overall, getting a Wyoming virtual address for your LLC formation could open doors to a lighter tax burden and other business incentives that serve as a soft launch pad for your business to kick-start with ease.
Nevada
Nevada is one of the top states for LLCs in the U.S. All thanks to favorable tax laws, business policies, and privacy laws that make the state a business-friendly environment for non-resident LLCs.
Although Nevada doesn’t rank quite as high as Delaware and Wyoming in the U.S. Chamber of Commerce ranking of business applications per capita, it still holds some ground in the top 10, recording 62,660 new business applications in 2024.
Why are business owners and entrepreneurs going for Nevada virtual addresses for LLC registration? Well, let’s find out.
Pros:
- Tax rate: Nevada does not have a corporate, state, or personal income tax, a factor that businesses aiming for less tax burdens highly appreciate.
- Privacy: Articles of Organization filed with the Nevada Secretary of State are public records, but the state has a rule that doesn’t mandate the LLC’s members to list their names or addresses. You can simply use a virtual address to keep your personal address private.
- Asset protection: Nevada has various asset protection laws in place to shield LLCs from creditors looking to seize their assets. The state’s asset protection laws include charging order protections, judgment creditors’ protection, and domestic asset protection trusts.
Cons:
- It has a 6.85% sales tax rate.
- With a $425 filing fee, Nevada has considerably higher registration fees compared to other states on this list.
Fees:
- $425 filing fee
- $200 annual business license fee.
For as low as $49, you can easily get a Nevada virtual address for your LLC formation to protect your privacy when filing your Articles of Organization and enjoy all the business-friendly policies that come with operating in Nevada.
Florida
New York may be considered the major economic hub in the U.S., but recent data suggests that small business owners and entrepreneurs don’t necessarily agree.
In 2024 alone, 634,321 business applications were submitted in Florida. That’s 342,029 more applications than New York (292,292 applications) received.
Despite its large population, it still made it to the #3 position in the U.S. Chamber of Commerce ranking of 2023 business applications per capita—New York held the 20th position.
It is no surprise that Florida is recognized as the most entrepreneurial state in the U.S.
So, why are businesses rushing to get their virtual address for LLC registration in Florida? What is it about Florida that makes it one of the top states for LLC formation?
Let’s quickly look at the benefits of establishing an LLC in Florida.
Pros:
- Large economy: Florida has a large economy that serves as a fertile ground for targeting markets across different industries and countries. As a result, LLCs situated in Florida have a high survivability rate (up to 77%), making it one of the best states for LLC formation.
- Friendly Policies: Florida has lots of business-friendly policies specifically designed to attract investments and businesses from non-residents.
- Taxes: Florida has no state income tax.
Cons:
- Asset protection policies are not as strong as those of other states on this list.
- Florida does not allow the formation of anonymous LLCs.
- There’s a 5.5% corporate tax and a 6% sales tax rate.
Fees:
- $100 filing fee for Articles of Organization
- $138 annual report/compliance fee
Although Florida has a higher tax rate overall, it makes up for it with a substantially larger economy than other states for LLC formation we’ve discussed.
More so, Florida’s taxes are considerably lower than that of other major U.S. cities.
For U.S. LLC formation for non-residents, thousands of businesses use Alliance Virtual Offices to get a professional business address in Florida.
Benefits of Using a Virtual Address for Your LLC
Going by the listed pros of doing business in the top states for LLCs in the U.S., you can see that there are significant benefits to using LLC virtual office solutions in different states.
From a broader perspective, the following sweeping benefits apply whether you are getting your LLC virtual office solutions in Nevada, Florida, Delaware, or Wyoming.
Professionalism
Limited liability companies use a virtual business address for LLCs to enhance their credibility and professionalism in the state where they are formed.
For most LLCs, this means using a virtual address as their primary business address in all the documents, platforms, and other materials and channels bearing their presence.
The prestige of having a virtual address in prime business centers in their LLC state becomes a part of their brand identity.
Essentially, the professional business address serves to show that the LLC is a well-established business operating from a remarkable business center or district.
Privacy Protection
From filing articles of organization and taxes to LLC mailing address services, you can use your virtual address to keep your residential address from public records.
Even in instances where states like Nevada make LLC formation details public records, a virtual address can serve in place of your home address to keep your personal details private.
This is an important safeguard that could protect you from data breaches, identity theft, and stalking.
Legal Compliance
As much as Nevada, Delaware, and Wyoming are popular for having low requirements for LLC formation, they all require that all LLCs have a primary business address.
In fact, having a business address is a crucial first step to accessing the business-friendly incentives that these states have to offer.
Getting a virtual address for your LLC helps meet that requirement effortlessly without committing to physical office space and the accompanying expenses.
Cost-Efficiency
For most, if not all, businesses, the best part about engaging the services of a virtual office provider for a professional business address is that it’s far cheaper than renting an office space.
And you don’t have to worry about the cost of visiting the state.
You can easily get a virtual address for LLC in Florida, Delaware, Nevada, and Wyoming for a fraction of the cost of a physical office, often as low as $49 per month from Alliance Virtual Offices.
Moreover, you are not bound by years-long leases, as with physical offices.
Why Choose Alliance Virtual Offices
When it comes to the virtual office industry in the U.S., Alliance Virtual Offices frequently comes up as a highly recommended virtual address network.
Clearly, Alliance Virtual Offices is doing something right.
If you’re looking for a virtual office provider for LLC, below are some of the factors drawing business owners and entrepreneurs from all over to Alliance Virtual Offices.
Comprehensive Services
Alliance Virtual Offices’ virtual addresses aren’t just virtual addresses; they are an embodiment of traditional office amenities restructured for utmost convenience.
To that end, Alliance Virtual Offices offers a complete suite of LLC virtual office solutions, comprising mail forwarding, digital mail handling, on-demand meeting rooms, a dedicated VoIP business line, and live receptionist services.
These office services, offered as additional options, are available to you whenever you need full office experience to meet growing business needs at your non-resident LLC address state.
Prime Locations
Take a quick look at any of the top states for LLCs in the U.S., and you’ll notice that our virtual addresses are all situated in prime business areas in major cities in each state.
That’s the Alliance Virtual Offices’ mark of quality.
For over 17 years, Alliance Virtual Offices has remained committed to delivering only prestigious business addresses to small businesses and entrepreneurs.
We offer businesses the opportunities to project high standards and climb quickly to the top.
Customer Trust
There is a high chance that you discovered Alliance Virtual Offices by recommendation.
Alliance Virtual Offices thrives on reliability and trust, and these qualities have generated thousands of highly positive reviews and testimonials from satisfied clients.
And it’s no marketing gimmick.
Customer reviews on Trustpilot and Consumer Affairs, summing to a 4.5-star average rating, are there to show for it!
Scalability
Alliance Virtual Offices’ virtual address plans are simple and flexible.
You can access all the additional services you need on a flexible basis.
This ability to add or remove services on an as-needed basis empowers businesses to operate with agility and flexibility, enabling them to easily scale up or down to match prevailing business conditions.
Overall, Alliance Virtual Offices makes it a lot easier for businesses to identify the best states for LLC formation in which to start or grow.
Conclusion
As a non-resident, getting a virtual address for your LLC is the most affordable and convenient option for registering your business in any of the top states for LLCs in the U.S.
However, it is important to acknowledge the various pros and cons that come with LLC formation in these states. They serve as pointers for you to see what you could benefit from, or have to forgo, to conduct your business successfully as a non-resident in those states.
That way, you can decide whether the state would be right for your businesses—or not.
As with every other business service, getting the best service starts with working with the best provider.
Alliance Virtual Offices has proven repeatedly that it is a leader in the virtual office industry. The best part is that you can easily and quickly get your professional business address for U.S. LLC formation for non-residents in any state in a matter of days.
Click here to choose your preferred virtual address for your LLC and get started!
