Best US state for a non-resident LLC: Wyoming vs New Mexico vs Delaware
As a non-resident you can form your US LLC in any state, so it pays to pick the cheapest and most private one rather than defaulting to wherever you have customers. For online founders it comes down to three: Wyoming, New Mexico, and Delaware. Here is the honest call, with the 2026 fees.
Short version. Pick New Mexico for the lowest lifetime cost (no annual fee at all), Wyoming for the best all-round option (privacy and asset protection for about $60 a year), and Delaware only if you will raise money from US investors (it costs $300 a year). All three keep your ownership private and charge no state income tax on a non-resident running the business from abroad.
Side by side
2026 state fees; confirm current figures before filing.
| State | Setup | Annual fee | Best for |
|---|---|---|---|
| New Mexico | ~$50 | $0 (no annual report) | Lowest lifetime cost; bootstrappers |
| Wyoming | ~$100 | ~$60 / year | Lean online business; privacy + asset protection |
| Delaware | ~$90 | $300 / year franchise tax | Raising US venture capital |
Sources: state filing offices (Wyoming, New Mexico, Delaware).
New Mexico: the cheapest to keep
New Mexico is the budget winner. Formation is about $50, and the standout feature is that it requires no annual report and no annual franchise fee at all, so once you are formed your ongoing state cost is effectively zero. Ownership is private. It is the obvious pick for a bootstrapper who wants a US LLC purely to access Stripe and US banking with the lowest possible upkeep.
Wyoming: the best all-round
Wyoming is the most popular choice for a reason. For about $100 to form and a $60 annual report, you get no state income tax, strong privacy (members are not on the public record), and some of the best asset-protection law in the US. It costs a little more than New Mexico each year, but the legal protection and reputation make it the default for most lean online businesses and e-commerce sellers.
Delaware: only for raising money
Delaware is the corporate gold standard, but it is the wrong default for a solo non-resident. It charges a flat $300 franchise tax every year, more than the other two, and its real value (a specialized business court and the structure US investors expect) only matters if you are raising venture capital or issuing equity. If that is not your plan, you are paying for prestige you will not use.
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Best state FAQ
What is the best state for a non-resident to form an LLC?
For most non-residents, New Mexico (the cheapest, with no annual fee) or Wyoming (the best all-round, with strong privacy and asset protection for about $60 a year). Choose Delaware only if you plan to raise money from US investors, since it costs $300 a year to maintain.
Does the state I choose change my US taxes?
Generally no. A US LLC is a pass-through entity, and a non-resident running it from abroad with no US presence usually owes 0% US federal income tax regardless of state. The state mainly affects your annual maintenance cost and privacy, not your federal tax.
Can my name stay private?
Yes in all three. Wyoming, New Mexico, and Delaware all let you form an LLC without listing the members' names on the public record; only your registered agent appears. This is different from places like the UK, where directors are public.
Do I have to live in or visit the state?
No. You do not need to live in, visit, or have any physical presence in the state. You only need a registered agent there, which every formation service provides.
State fees and rules change. This is general information, not legal or tax advice. Confirm the current figures with the state filing office or a professional before you form your company.