Freelancers often work independently and remotely, which gives them the flexibility to choose the best state to form an LLC without being tied to a specific location. Choosing the right state for your Limited Liability Company (LLC) can impact taxes, privacy, costs, and legal protections.
Since most freelancers operate online, choosing a tax-friendly and low-cost state is crucial. Below are the best states for freelancers to form an LLC in 2025.
1. Wyoming – Best for Low Taxes and Privacy
Why Freelancers Should Choose Wyoming
Wyoming is one of the most freelancer-friendly states due to its zero state taxes, strong privacy protections, and low fees. If you work remotely and want to minimize costs, Wyoming is an excellent choice.
Key Benefits:
•No state income tax – Keep more of your earnings.
•Strong privacy protection – LLC owners do not have to disclose personal details.
•Low formation and maintenance costs – One of the cheapest states to start and maintain an LLC.
•No annual business license required – Unlike Nevada.
•Strong asset protection laws – Protects personal assets from lawsuits.
Downsides:
•Less appeal to investors – Not a concern for most freelancers.
•Not ideal for local businesses – Best for remote workers, not those needing a physical presence.
2. Florida – Best for Online Freelancers
Why Freelancers Should Choose Florida
Florida is a great choice for freelancers who work remotely but want access to a strong business environment. With no personal income tax, Florida is attractive for digital entrepreneurs and independent contractors.
Key Benefits:
•No state income tax – Freelancers keep more of their earnings.
•Affordable LLC fees – Lower than some other states.
•Strong local economy – Great if you plan to network or collaborate with Florida-based businesses.
Downsides:
•Some LLCs may face corporate taxes – If structured incorrectly.
•Less privacy protection – Owner information is publicly available.
3. Texas – Best for Freelancers Who Want Business Growth
Why Freelancers Should Choose Texas
Texas is a great state for freelancers who want to scale their business while benefiting from tax advantages.
Key Benefits:
•No personal income tax – Keeps more money in your pocket.
•Strong business-friendly environment – Ideal for freelancers who plan to expand.
•Large local market – Good for freelancers looking to work with Texas-based clients.
Downsides:
•Franchise tax applies to some LLCs – If your revenue exceeds a certain threshold.
•Less privacy – Owner details are publicly available.
4. Nevada – Best for Privacy and No Taxes
Why Freelancers Should Choose Nevada
Nevada is a strong choice for freelancers who value privacy and tax advantages but don’t want to deal with high annual fees.
Key Benefits:
•No state income tax – Helps freelancers keep more earnings.
•Strong privacy laws – Owners do not have to disclose personal details publicly.
•No franchise tax – Unlike Delaware.
Downsides:
•Higher annual fees – More expensive than Wyoming.
•Annual business license required – Unlike some other states.
5. Delaware – Best for Freelancers Planning to Scale
Why Freelancers Should Choose Delaware
Delaware is ideal for freelancers who plan to scale their business or seek investors in the future.
Key Benefits:
•Strong legal protections – Business-friendly laws and court system.
•No sales tax – Can reduce costs for freelancers who sell digital products.
•Privacy protection – LLC owners’ names do not have to be listed publicly.
Downsides:
•Franchise tax applies – Adds extra costs.
•Not necessary for small freelancers – More useful for businesses seeking investors.
Final Recommendation
•Best Overall Choice for Freelancers:Wyoming (Low taxes, strong privacy, low fees).
•Best for Online Freelancers:Florida (No personal income tax, strong economy).
•Best for Freelancers Planning to Scale:Texas or Delaware (Business-friendly environment).
•Best for Privacy and No Taxes:Nevada (Privacy laws with no state income tax).
If you are a freelancer working remotely and want to save money while protecting your business, Wyoming is the best state for forming an LLC. If you need help setting up an LLC, feel free to ask.
