We are a small business (a husband and wife team) based out of New York State. We are looking to move and wondering where the best state for a small business is. We do our business from our house, so a business location is not needed.
Is your LLC in New York State?
If so, changing the state where your LLC is filed is going to be a pain, no matter what state you go to. New York doesn’t let you export your LLC, so you’d have dissolve the LLC in New York and then form a new one in your new state. (I learned this the hard way when I moved from New York to California and wanted to take my LLC with me.)
You might be better off just leaving your LLC in New York and then filing as a foreign (that is, out-of-state) entity doing business in your new state.
From what I understand, your taxes would be the same either way, and you’d get to keep your EIN. (Having a continuously-used EIN is useful if you ever need to open a line of credit or get a loan. EINs for businesses that have been open for at least two years get much better terms than those that haven’t been operating for as long.)
If you enjoy economic freedom, I’d choose a red state.
For example, Florida is a great state to do business in.
If you can’t prosper here, you can’t prosper.