For non-US residents forming a US LLC, three states dominate the conversation: Wyoming, New Mexico, and Delaware. Each has real advantages. Here is an honest comparison.
Quick comparison
Wyoming: $100 filing fee, $60/year, strong privacy, no state income tax, best asset protection.
New Mexico: $50 filing fee, $0/year (no annual report), good privacy, no state income tax. Cheapest to maintain.
Delaware: $90 filing fee, $300/year franchise tax, weaker privacy, no state income tax on out-of-state income. Standard for VC-funded startups.
Choose Wyoming if…
You want the best all-around option. Strongest asset protection, best privacy, reasonable costs. The default for online businesses, consulting, and e-commerce run by non-residents.
Choose New Mexico if…
Minimizing ongoing costs is your priority. No annual report, no franchise tax. Your only recurring cost is a Registered Agent fee. Trade-off: slightly less name recognition, though this rarely matters in practice.
Choose Delaware if…
You plan to raise venture capital (many VCs require Delaware entities) or need the Court of Chancery. For everyone else, the $300/year franchise tax and weaker privacy make it less attractive.
What about Florida, Nevada, or Texas?
Florida works if you plan to move there ($125 filing, $139/year). Nevada markets itself as tax-friendly but costs $350/year in combined fees. Texas has no income tax but a $300 filing fee. None offer clear advantages over Wyoming or New Mexico for non-residents.
Not sure which state? freeLLC’s state quiz helps you pick the right state in 60 seconds. The DIY path is completely free.