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3 Lowest Cost States to Start an LLC

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StrategyDriven Starting Your Business Article | 3 Lowest Cost States to Start an LLC | Incorporation

When you are starting a business, you have to make every dollar count. You may have no idea how much revenue you will bring in at first – and you know you are going to have to work out some kinks before your business becomes more stable. So, it makes sense to try to find the lowest cost state to form your LLC. Of course, there are multiple ways to measure “lowest cost” when it comes to forming a business. Are we talking about which state has the lowest LLC formation fees, or are we talking about which state is the most affordable to do business in?

There are many states that try to make doing business affordable, from Texas to Florida and throughout the country. But there are some that try to go the extra mile, either by making taxes extremely low, licenses and filing fees low, or both. Since you may have your own idea of what “affordable” means, we will examine this question from two angles. First, we can look at which three states are best for overall affordability for business, then we will take a quick look at which three states have the lowest LLC formation fees.

3 Most Affordable States to Form an LLC

1. Wyoming

The state of Wyoming does a lot to make starting a business as easy and attractive as possible. For one thing, it has a 0 percent corporate tax rate and a 0 percent individual income tax rate. That’s right, you don’t have to worry about paying either corporate state tax or individual state income tax. You will still be hit with federal taxes, but Wyoming is easy on businesses as far as taxes go. The effective property tax rate is also extremely low – at .61 percent. When you consider that the average property tax rate in the country is 1.19 percent, the affordability of the Wyoming tax system is readily apparent.

The sales tax rate in Wyoming is also quite low at 4 percent. That means your customers will not be as likely to experience sticker shock when they buy products from you since the sales tax they see will not be too high.

2. Nevada

Nevada is another one of the most popular states to form an LLC because it offers multiple tax advantages to businesses that make the state home. Just like Wyoming, Nevada has a 0 percent corporate tax rate and a 0 percent individual income tax rate. Your business won’t have to pay corporate state taxes and you won’t have to pay state income taxes. Again, you will still face federal taxes, but every little bit helps. The effective property tax rate in Nevada is also extremely low at .77 percent.

The sales tax rate in Nevada is higher than Wyoming at 6.85 percent.

3. South Dakota

South Dakota also strives to set itself apart as a business haven by making its taxes quite low. You will find a 0 percent corporate tax rate and a 0 percent individual income tax rate in the state and an effective property tax rate of 1.32 percent. So, it can be more expensive to own property – like your brick and mortar store – in South Dakota than Wyoming or Nevada – but if you don’t own property in the state then the property taxes are less of a concern for your business.

The sales tax rate in South Dakota is 4.50 percent.

Cheapest LLC Formation Fees

If you are just looking for states with the lowest fees for forming an LLC, you should consider the following locations:

  • Arizona. You only have to pay $50 to file your LLC formation documents in Arizona. Even better, there is no annual fee and no report due each year.
  • Missouri. The fee for filing in Missouri is higher than some other states at $105, but you don’t have to pay an annual fee each year nor do you have to file a report. That makes Missouri quite low to form an LLC in over the long-term.
  • New Mexico. The fee for filing an LLC in New Mexico is only $50 and there is no annual fee and no report due. That makes New Mexico just as affordable as Arizona.
  • Kentucky. The state of Kentucky has the lowest filing fee of any state in the country. They only charge $40 for you to file. However, they do expect you to pay $15 every year to keep your LLC official with the state.

Where Should You File Your LLC?

When you start looking more closely at your options for forming an LLC, you realize that there are plenty of different states that offer attractive deals. Some are extremely affordable to do business in and others make it very cheap to file your LLC. So, what should your main priority be?

The answer is, “It depends.” Deciding where to form your LLC is a personal decision that needs to be made based on what is most important to you. For absolute convenience, there is probably nothing better than forming your LLC in your home state. That’s because it is often simpler to handle paperwork and deal with government entities when you can go down the street to do so. But if you want to save money on filing fees or gain tax advantages, you may want to consider forming an LLC in a state that offers you the most of what you want for your business.

3 Essentials For Your Start-Up

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Every day there are hundreds of new start-ups getting ready to launch. It has never been a more perfect time to test your ideas than now.

StrategyDriven Starting Your Business Article | Entrepreneurship | 3 Essentials For Your Start-Up | Start-up

Entrepreneurship, owning a small business, or even going freelancing, is exciting and has never been more possible than it is now. There are a few key things that you should have in place before you launch a start-up, or at the very least, consider the implications for your business.

There is almost nothing that you can’t have as a service right now, from cloud solutions to fax from email. All of these things will make running your business easier and more manageable.

You can set almost anything up from the comfort of your own home, or if you prefer the local coffee shop. You don’t even necessarily need more than a few hundred dollars or less. Here are some essentials that you should consider.

Team

While you might be starting a business entirely by yourself, or simply freelancing, you still are going to need a team. It is important to note that this team could be a list of incredible tools to help you do your job better.

Or it could be things like a virtual assistant, managed IT, or other friend answers that have skills that you don’t. This will allow you to take on much bigger jobs earlier on. Are you likely to know a few people who fit the bill, so have a chat earlier on and see if they would be prepared to get involved with projects that much their skill sets.

Project Management

You are going to be in charge of all of the projects. Until that is, you reach such a point where you need a project manager to help you stay on track. Luckily there are plenty of online project management tools that can help you manage a team of freelancers, schedules, timekeeping, and even invoicing. Some of them provide much of the services for free.

You’ll need to decide what really suits what you’re doing. When it comes to taking things like meetings, you can do this via Skype and FaceTime. Many of these tools are free or offer a free limited option,  which means there is no excuse for ducking a meeting.

Online

The very basic of letting people contact you, see your portfolio, learn more about you will be your online presence. The first thing you want to do is claim a domain name. Try to use something easy to remember, relates to your business, can also be used on Facebook, Twitter, Instagram, and other social media sites.

You can typically purchase a domain name from the same place as you intend to have your website hosted. You may decide you do not need a full website package because you can build a website yourself. This is entirely possible with some of the easy-to-use drag-and-drop options or the 1-Click installs from WordPress.

Try to ensure that when you purchase hosting and domain name, you also have email inboxes, support, and access to your Cpanel.

Having all of the basics like these, your tools, your website, and some people in mind that you can work with will mean that you are more likely to start off on the right foot. Laying good business foundations will keep your business stronger through shaky times. Entrepreneurship, freelancing, and small business ownership is exciting but deserves planning and time.

How To Minimize Your Business To Maximize Growth

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When people start a business, they all head into it with a mindset of owning an empire that sees growth years on year. Now, unfortunately, reaching the level of a global empire isn’t something many of us will achieve, but there is no reason we cannot see constant growth throughout the years.

In this post, we are going to be looking at some very simple things you can do with your business that can show enormous amounts of growth very quickly.

StrategyDriven Managing Your Business Article | Entrepreneurship | Business Growth | How To Minimize Your Business To Maximize Growth

Why You Are Not Growing

If you have noticed that your business has reached a point where it has hit a metaphorical wall, then the time has come that you need to acknowledge that something is wrong with your business and needs changing.

One of the main issues is possibly that you are allocating your business funding correctly, and you are more than likely spending too much. While you may plan your spending carefully, more often than not, most businesses tend to spend money on things that they just don’t need to.

In the next section, we are going to be looking at a few of these, and hopefully, you will be able make a few changes that see your business start to grow overnight.

Stop Doing Everything

One of the biggest mistakes that businesses seem to make today is that they believe they have to have every department in house. While it used to be the way that your business would require many different departments, the modern world has a solution for this.

You can now take some of your most expensive departments and look at outsourcing them. You can easily find managed IT services and even outside call handlers. If you think logically, you can save up to 80% of your yearly wage budget by simply outsourcing some of your departments.

For many companies, this is a huge amount of cash, once you tackle this problem, think how much your margins change overnight.

Save On The Small Stuff

Other areas you can minimize are things like your workspace and your bills. There are many businesses now opting for shared office complexes. By taking on one of these, you lose the massive bills that come with leasing an office building, and you just pay a set rate monthly.

These complexes are often frowned upon, but the truth is that often they promote so much more productivity than your regular office, and the atmosphere is always amazing.

Sure, these solutions may seem incredibly simple, but you should realize that put together, they can take your business to brand new levels of success. If you are truly looking to make a difference to your end of year figures, then both of these can get you well on your way.

You may also find that once you have started, you will find brand new ways to save money. Just remember, just because you are minimizing doesn’t mean you are failing, it simply means you are thinking outside of the box.

Ways To Help Support Your Staff More

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Helping support your staff more in the business can be really beneficial to your company. Looking after your employees and making sure they’re happy at all times is the secret to a productive work environment. Here are some ways to help support your staff more when they’re working for your business.

StrategyDriven Managing Your People Article | Ways To Help Support Your Staff More | Talent Management | Entrepreneurship | Staff Support

Listen To Their Needs

Their needs should always come first, and as a result, you’ll likely see a change in the way they see the company and the respect they have for you as an employer. Listening to their needs and what they want can be done in a number of ways, the most important being through regular meetings with them on a one-to-one basis. This can be helpful in getting them to talk through their concerns or what they want to change. If they’re seen as a valued member of staff, rather than just a number, that’s going to help build work relations across the company. Try to change what you can in order to make their working environment more enjoyable at all times. Obviously, not everything can be honored, but at least you’re trying.

Improve IT Services

IT problems tend to be something that a lot of businesses have a problem with, and if there are problems with your equipment and staff workstations, then you’ll find productivity levels are going to dip. Staff need to be able to get on with their work with little distractions or disruptions. Otherwise, you’ll find the concentration for them to continue with their work will be severely depleted. IT services & support are in constant supply, so if your current situation isn’t working for you, look at other companies who might be able to help.

Encourage A Work-Life Balance

A work-life balance is one thing that many of your staff members will probably want in life. After all, we spend so much of our time working, it’s important that we are able to get the most out of life outside of work too. Try to encourage a better work-life balance and change the benefits that some of your staff might not currently be getting. A mental health day can be good for those who need a break every now and then to reset the batteries. Being flexible with working from home can also help.

Assist With Company Progression

Company progression might be on the cards for some of your employees, and so if they wish to rise through the ranks, it’s good to help them in whatever way possible. That might be offering them extra training or courses to improve their resume, and it might also be offering promotions and career opportunities both inside and out of the company.

Supporting your staff as a company is important to maintaining happiness levels and overall job satisfaction. So, keep working on ways to make the working environment better. Improve job prospects and encourage a good balance of work and personal life. Improve what’s not working properly and listen to their needs whenever you can.

Entrepreneurs: Try These Productive (And / Or Lucrative) Ways To Spend Your Coffee Break

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The life of an entrepreneur is many things, but relaxed and leisurely it is not. Rarely do entrepreneurs get to enjoy downtime in the same way that their salaried peers do. The entrepreneurial mind is never at rest and is constantly striving for new challenges and new ways in which to hone its skills while developing new ones. Entrepreneurs exist in a constant state of self-improvement and self-development. So even when they take a few minutes for a coffee break, it’s not uncommon to see them restlessly tapping their fingers, twitching their legs and scrolling through their phones.

StrategyDriven Entrepreneurship Article | Entrepreneurs: Try These Productive (And / Or Lucrative) Ways To Spend Your Coffee Break

If you find yourself restless, try these productivity boosting and / or potentially lucrative ways to spend your coffee break.

Take a trading break

In the digital age, trading is no longer the sole preserve of high flying Wall Street types. In fact, virtually anyone can become a trader in their free time. Using trading apps like Metatrader 4 can help to demystify the world of trading and allow you to trade all kinds of commodities with reasonable commissions and very little financial commitment on your part. Instead of spending your downtime on mobile games, why not try your hand at something that could become a potential revenue stream?

Compose some thought leadership articles on LinkedIn

Entrepreneurship is all about building your own personal brand to supplement the brand you’ve created for your business. The more people like and trust you, the more likely they are to see value in your business. Take the time to write thoughtful blog posts on LinkedIn which demonstrate your knowledge, experience and expertise to your target audience and other business leaders. Of course, you can use the same content to post on the blog section of your own business’ website. However you choose to present it, commiting your insights, reflections and musings on your industry to writing can be an extremely useful and potentially profitable way to spend your downtime.

Learn a new language

The world is getting smaller every day, and even if your business doesn’t yet have its sights set on an international market that’s no reason not to be prepared. Learning a language isn’t just a great way to help your business on its way to international domination it’s also a great way to keep your brain healthy and feeling young (just like learning a musical instrument). You’[d be surprised how quickly you can learn the fundamentals of a new language in just 15 minutes a day.

Listen to business audio books and podcasts

We all know what a prolific reader Warren Buffet is, but if you don’t have the time to consume his massive reading list in your downtime, listening to business audiobooks and podcasts may be a more readily digestible alternative.

Try mindfulness meditation

Finally, the busy mind of the entrepreneur is like any other highly efficient machine. It needs to be well rested and maintained to remain at peak efficiency. As such, it may be worth taking a few minutes in your downtime to practice mindfulness meditation. It can not only help you to manage stress and quiet your mind, it can also help you to work more efficiently and prevent the rush of entrepreneurial life from feeling too much.