What state should I form the LLC in to avoid sales tax?

Asked by: Eric Reed  — 12 May, 2011

Starting an online drop-ship company selling goods to all over USA, in which state can I form an LLC and not be required to charge sales tax to any of my customers?

Answered by: admin  — 12 May, 2011


Actually Delaware would work great for that purpose as it has no sales tax at all.

You could also register your company in Wyoming (another great incorporation heaven with cheaper LLC maintenance costs than Delaware), but then your Wyoming consumers might be subject to sales tax (I would verify that with an accountant, since technically even though your company would be registered in that state the goods are shipped form out of state, so it could get a bit confusing).

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