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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 17223
Experience:  10 years experience
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What is the most tax friendly and business friendly (cheap

Customer Question

What is the most tax friendly and business friendly (cheap to start and maintain a business) state for logistics, supply chain management, warehousing type of business. Company formed in US by International, e.g. in Delaware, Nevada. Need to hire few employs, rent a warehouse and operate in those fields.
Submitted: 5 years ago.
Category: Tax
Expert:  Wallstreet Esq. replied 5 years ago.

Wallstreet Esq. :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification

Wallstreet Esq. :

If location is not important, States such as Nevada and Wyoming are the best States to run a business, as the State laws are corporation friendly, and both have no States tax.

Wallstreet Esq. :

Seven states (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) do not tax personal income.

JACUSTOMER-pgf1j4xh- :

What about Delaware please

Wallstreet Esq. :

Deleware is known for it's strong corporate laws, and is a good place to create or incorporate your business, however they have a State income tax, and is not known for it's business friendly climate, compared to the others.

Wallstreet Esq. :

Many US corporations have incorporated in Deleware, and maintain the head office their.

JACUSTOMER-pgf1j4xh- :

the thing is those states you listed are too far from airports i prefer

Wallstreet Esq. :

Where would you ship from?

JACUSTOMER-pgf1j4xh- :

My favorite airpots are: Los Angeles, Chicago, New York, Washington

JACUSTOMER-pgf1j4xh- :

actually the only matching I see is Washington

JACUSTOMER-pgf1j4xh- :

but cost of business is going to be high there I believe

Wallstreet Esq. :

That is Washington State,

JACUSTOMER-pgf1j4xh- :

oh Washington state

Wallstreet Esq. :

Nevada may be fine as it is close to CA,

JACUSTOMER-pgf1j4xh- :

even worse

JACUSTOMER-pgf1j4xh- :

Yes, from the list you have it's the closest than

JACUSTOMER-pgf1j4xh- :

but it's still a way far... 10h to drive

Wallstreet Esq. :

Deleware, actually would be good for you as well,

JACUSTOMER-pgf1j4xh- :

I already have a Delaware company

JACUSTOMER-pgf1j4xh- :

LLC

JACUSTOMER-pgf1j4xh- :

but no employs, no operation, nothing yet.

Wallstreet Esq. :

The rents are cheaper than other cities in the mid atlantic

JACUSTOMER-pgf1j4xh- :

I have an EIN and Corporate bank account in NY

JACUSTOMER-pgf1j4xh- :

New York

JACUSTOMER-pgf1j4xh- :

since i'll be hiring ppl and renting warehouse, also getting license of operations etc...

JACUSTOMER-pgf1j4xh- :

I don't want to be in troubles really, this is going to be my first US Company and a real operation

JACUSTOMER-pgf1j4xh- :

that's the reason I do the further research like that

JACUSTOMER-pgf1j4xh- :

In addition with the best location for this kind of business

Wallstreet Esq. :

Around NYC, their are several areas to choose, but rents and costs of business are high

Wallstreet Esq. :

NJ, may be good for you their rents are much lower than NY, and you are near Newark airport

JACUSTOMER-pgf1j4xh- :

you said Delaware is ok

Wallstreet Esq. :

Ye Del, is fine as well it has cheap rent for space and only a few hours from DC, NYC, and Philadelphia

JACUSTOMER-pgf1j4xh- :

200 mil to those Airports are OK to me, so Delaware to Washington D.C. and New York is acceptable

JACUSTOMER-pgf1j4xh- :

ya

Wallstreet Esq. :

yes

JACUSTOMER-pgf1j4xh- :

but what's the problem with it than

JACUSTOMER-pgf1j4xh- :

you didn't list it from the beginning

Wallstreet Esq. :

It has a state income tax, unlike the ones listed above

JACUSTOMER-pgf1j4xh- :

but it's only $250 or so per year

JACUSTOMER-pgf1j4xh- :

fixed

JACUSTOMER-pgf1j4xh- :

is that the only downside you see?

Wallstreet Esq. :

Delaware's corporate tax structure consists of a flat rate of 8.7% on all corporate income. Among states levying corporate income taxes, Delaware's rate ranks 10th highest. In 2009, state-level corporate tax collections (excluding local taxes) were $237 per capita, ranking 6th highest among states that tax corporate income.

Wallstreet Esq. :

And they have income tax

Wallstreet Esq. :

Deleware is fine, if you want to be near major US cities, and airports and want to save on rent, wages and taxes

JACUSTOMER-pgf1j4xh- :

but i'm an international, does that makes any difference in terms of taxes

JACUSTOMER-pgf1j4xh- :

and is Delaware a friendly to business for operation license requirements

Wallstreet Esq. :

yes, Deleware is fine for International corporations, and for what you are looking for it is better than the other area states