Which state(s) are most tax advantageous for REI business?

[Jeff Boardman]

I could not find this question answered amongst the various forum topics to which I am privy.  Does anyone have any advice on tax advantaged states in which to start my business officially?  I am in the very early stages, I only have one property and have been operating essentially as a sole proprietorship without the official designation but as I expand I would like to change that.  I don't plan to have any physical presence and my business plan involves investing in multiple markets but the question remains, where can I officially open my business in the most tax efficient manner?  Thanks for your help BP!

[Bryan O.]

@Jeff Boardman you do not mention what kind of business you are doing, but basically here is the breakdown. You will be taxed in whatever state your rental property exists or your business does its business. If you are sued you will be subject to the laws of whatever state you are sued in. The only state that seems to break from that is California... they just charge anyone who thinks about living there $800 a year. I have not really heard many compelling reasons for an RE person to open an LLC in any of the "famous" places (Wyoming, Delaware, Nevada).

Basically, either open the LLC in your state and register it to operate in whatever other states you also do business. If you only do business in your state, then just open it there.