3 Best US States to Start an IT Business in USA


Nowadays (especially during the Covid era) IT businesses are truly booming.

3 Best US States to Start an IT Business in USA

They seem to be somewhat superior to traditional ones as in most cases they don’t need physical offices and can largely work and operate on a remote basis.

However, USA is still one of the main places around the world for newly created IT companies. And that’s not a coincidence, since starting an LLC (limited liability company) there is rather simple, quick and cheap.

In addition, you can operate and have clients all around the globe.

In this article we’ll dive a bit deeper on TOP 3 U.S. states that are most friendly for your new LLC.

1. California

It’s definitely of the top choices for businesses in US. California is immensely wealthy state, it’s home to the famous Silicon Valley where all major IT companies reside. No surprise that a lot of new IT startups choose CA, USA for their new businesses.

2. Utah

Utah stands out from other states with their 0% corporate tax and 0% individual tax rates. It’s especially beneficial for international IT companies’ owners who’re looking to pay ‘optimal’ taxes in the U.S. In order to start an LLC in Utah you will only need to pay $70 filing fee and $20 annual maintenance fee.

3. Texas

Texas is booming with new IT startups lately. Especially Austin, which is now being called the “2nd Silicon Valley”. Reason for that are very attractive tax policies in Texas. It is also relatively not so far away from California, so a lot of Californians and their businesses are moving exactly to Texas due to lower taxes and more business-friendly environment. Also, it’s worth mentioning that wages and real estate costs are a lot lower than in CA as well.


Here you have it – 3 US states that are truly friendly for your new IT business. Once you choose your preferred state – you will only have to form your LLC. You can either do this yourself or instead save a lot of time and hire a professional company to file an LLC for you. For example, you can use a widely known service IncFile (you can read it’s review here: https://llcguys.com/reviews/honest-incfile-review-is-it-the-best-llc-formation-service/). Personally, we would recommend using IncFile or any other LLC creation service for that matter, simply because it’s really affordable and saves you a lot of time and headache.

So that’s about it – now you know how to form an LLC for your IT business easily in one of those 3 states we mentioned. If you’d ask me – I would probably recommend Texas the most. Good luck!

Photo of author

Lucy Bennett

Lucy Bennett is a Contributing Editor at iLounge. She has been writing about Apple and technology for over six years. Prior to joining iLounge, Lucy worked as a writer for several online publications.