New York vs Florida LLC: Which Is Better for Non-Residents?

New York vs Florida: Side-by-Side Comparison

Here's a comprehensive comparison of the two states across all key factors for non-resident LLC formation:

Tax Comparison

New York Taxes

• Personal Income Tax: 4%–10.9%
• Corporate Tax: 6.5%–7.25%
• Sales Tax: 4% (+ local)

Florida Taxes

• Personal Income Tax: None
• Corporate Tax: 5.5%
• Sales Tax: 6%

For non-resident entrepreneurs with single-member LLCs treated as disregarded entities, state income tax typically only applies if you have income sourced within that state. If you have no in-state operations, employees, or customers, state income tax may not apply regardless of which state you form in.

Formation & Annual Costs

Privacy & Asset Protection

New York

• Privacy: Publication reveals entity
• Asset Protection: Moderate
• Court System: Strong commercial courts

Florida

• Privacy: Member names public
• Asset Protection: Strong
• Court System: Standard state courts

The Verdict: New York or Florida?

Florida has no income tax while New York can tax up to 10.9% (plus NYC local tax up to ~3.9%). Many high-net-worth individuals and businesses have relocated from New York to Florida for tax savings. Florida's formation and ongoing costs are predictable and moderate. New York's publication requirement adds significant upfront costs. For non-residents, Florida is clearly better unless you need a NYC address for your business.

Remember that regardless of which state you form your LLC in, your federal tax obligations remain the same. All foreign-owned single-member LLCs must file Form 5472 and a pro forma Form 1120 annually, with a $25,000 penalty for non-compliance.