Which state is better for your US LLC? We break down filing fees, taxes, privacy, and annual requirements so you can decide with confidence.
All costs and requirements for a LLC in 2026.
| Criteria | 🦅 Virginia | 🌲 North Carolina |
|---|---|---|
| Filing Fee | $100 ✓ Winner | $125 |
| Annual Fee | $50/yr ✓ Winner | $200/yr |
| State Income Tax | Yes (2–5.75%) | Yes (4.75% flat 2023) |
| Privacy Level | Low | Low ✓ Winner |
| Processing Time | 3–5 days | 3–5 days |
| Franchise Tax | None | Yes |
| Best For | Government contracting, NoVA tech corridor | Research Triangle tech, Banking (Charlotte) |
Government & Defense Tech Hub
The Research Triangle Power
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Get My Recommendation →It depends on your business type and goals. Virginia is better for government contracting, while North Carolina is preferred for research triangle tech. Use the AI State Selector for a personalized recommendation.
Yes — both states allow non-US residents to form a LLC remotely. You'll need to hire a registered agent and obtain an EIN (Employer Identification Number) from the IRS.
Virginia: 3–5 days. North Carolina: 3–5 days. Expedited processing is often available for an additional fee.
State taxes generally apply based on where business activity occurs ("nexus"), not where you formed. If you have no employees, office, or customers in the formation state, you typically won't owe state income taxes there. Consult a CPA for your specific situation.
From formation to ongoing compliance, banking, and legal docs.