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Best State to Form an LLC for Startups
LLC

Best State to Form an LLC for Startups

Delaware is the best state for startups that plan to raise venture capital, because investors expect a Delaware company and its Court of Chancery gives predictable business law. Forming an LLC there costs $110, plus a $400 annual tax. Bootstrapped startups get lower costs and more privacy in Wyoming: $100 to form and a $60 minimum annual report. Investors fund corporations, not LLCs, so a startup planning a priced funding round forms or converts to a Delaware C corporation.

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