Thinking about starting a business in the United States as a non-US person? One of your most important decisions is choosing the right state to form your Limited Liability Company (LLC). With different fees, privacy protections, and tax rules across all 50 states, picking the right one can make or break your business setup.
In this guide, we’ll help you choose the best state for your US LLC. We focus on the three most popular choices for non-residents, Wyoming, Delaware, and New Mexico, and tell you which states might not be right for you.
Why state selection matters when forming a US LLC
Although LLCs are federally recognized entities, they are formed at the state level. Each US state differs in:
- Formation and maintenance costs
- Annual reporting requirements
- Tax policies
- Privacy laws
Choosing the right state can lower your taxes, reduce paperwork, and protect your identity.
The best states for non-US residents to form an LLC
1. Wyoming – The best state for privacy and costs
Why choose Wyoming?
Wyoming is the top choice for non-US entrepreneurs registering online businesses. Read more about why Wyoming is the best state for foreign-owned LLCs.
Best for: Entrepreneurs seeking low-cost, low-tax, and private LLC structures
2. Delaware – Ideal for corporate structure and legal stability
Why choose Delaware?
Delaware is great for startups seeking funding. But keep in mind that it does come with higher maintenance fees including $300 annual franchise tax fee. Delaware also offer less privacy compared to Wyoming or New Mexico.
Best for: Startups looking for funding, holding companies, or enterprise-facing ventures
3. New Mexico – The low cost option for forming an LLC
Why choose New Mexico?
New Mexico is a budget option for international founders who want a low-maintenance LLC without ongoing state fees. However, it lacks an online filing system. The unavailability of a Certificate of Good Standing is another key downside of a New Mexico LLC.
Best for: Entrepreneurs who want zero ongoing state fees.
LLC comparison: Wyoming vs Delaware vs New Mexico (2025)
| Feature | Wyoming | Delaware | New Mexico |
| Formation fee | $100 | $90 | ~$50 |
| Annual report |  $60 annual report | $300 franchise tax (flat for LLCs) |  None |
| Franchise tax | None | Yes – $300 flat | None |
| State income tax | None | Yes – but only for DE-source income |  Yes – if NM-source income |
| Anonymity (public records) | Strong – owners not disclosed | Moderate – public unless structured via agent or trust | Moderate – not public, but traceable via agent |
| Privacy from public view | Excellent | Requires extra structuring | Member names not in public filings |
| Annual registration maintenance cost | Low – $60/year | High – $300/year | None – $0 |
| Registered agent required | Yes | Yes | Yes |
| Best for | Online businesses, international founders | Funded startups, legal protection | Low-cost LLCs with no NM-sourced income |
States to avoid for non-residents (in most cases)
Unless you have a physical presence or specific need, these states are not the best choice, due to high fees and complexity:
- California – $800 annual franchise tax and strict rules
- New York – Requires local newspaper publications
Key considerations when choosing a state to register a US LLC
Before choosing your state, ask:
- Will I have a physical office or team in the US?
- Do I need investor backing or plan to scale quickly?
- Do I want to keep my name private?
- Am I selling online only, or offering US-based services?
- Do I want to avoid ongoing fees?
The initial company setup cost is only one factor. Don’t forget about the ongoing compliance requirements and potential tax burden.
Do you have to register in other states when doing business there?
Whether you have to register in other states depends on whether you are doing business in those states.
“Doing business” here means having an office, employees, inventory, or dependent agents physically located in that state. Providing services or selling products to customers in that state does not require you to register there. (Selling physical products may trigger tax obligations though.)
So, if you are forming a company in Wyoming but are doing business in California, you must also register the business in California.
Summary: What’s the best state to form a US LLC?
| State | Best For | Key Benefits |
| Wyoming | Online, privacy-focused | No income tax, privacy and legal protection, low annual fee |
| Delaware | Funding and corporate structure | Legal credibility, investor trust |
| New Mexico | Minimal setup and maintenance fees | Low state cost |
Our recommendation: If you’re a non-US resident launching an online business, Wyoming offers the best balance of cost, privacy, and simplicity.
Let us help you form your US LLC remotely
We specialize in helping non-US persons form LLCs in Wyoming, Delaware, and other states. You don’t need a US address or Social Security Number – we handle everything from start to finish.
Start your US LLC today – Simple, secure, and fully remote.
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