Best State to Form an LLC for Non-Residents
Comparing Wyoming, Delaware, and New Mexico — the top choices for international entrepreneurs.
Why Form a US LLC?
American LLCs offer several advantages for international entrepreneurs:
- International credibility — US companies are trusted worldwide, making invoicing easier
- Affordable formation — Low setup and maintenance costs compared to other jurisdictions
- Tax efficiency — Some states offer zero state income tax
- Banking access — Open US bank accounts and payment processors
Non-residents are only taxed on US-sourced income, making LLCs ideal for digital businesses serving international clients.
Three Critical Selection Factors
1. Filing Fee
One-time cost to form your LLC. Varies by state but generally between $50–$150.
2. Annual Fees
Ongoing state charges. This has the biggest long-term cost impact — from $0 to $300/year.
3. Privacy
Whether owner info is public. Note: IRS still requires disclosure regardless of state.
State Comparison
| State | Filing Fee | Annual Fee | Privacy | Notes |
|---|---|---|---|---|
| Wyoming | $100 | $50 | ✓ Yes | Best overall choice. Strong banking acceptance, low costs, and privacy. |
| Delaware | $90 | $300 | ✓ Yes | Established reputation but high annual fees make it expensive long-term. |
| New Mexico | $50 | $0 | ✓ Yes | Lowest cost option but less banking acceptance than Wyoming. |
Our Recommendation
Wyoming is the best choice for most non-resident entrepreneurs. Here's why:
- Best banking acceptance — Banks recognize and trust Wyoming LLCs
- Reasonable costs — $100 to form + $50/year is affordable
- Strong privacy — Owner information not public
- No state income tax — Only federal taxes apply
- Business-friendly courts — Established legal framework
New Mexico is a viable alternative if you want to minimize costs and don't mind potentially limited banking options. Delaware is only recommended if you specifically need its legal framework (e.g., for VC funding).
Ready to form your Wyoming LLC?
We handle everything — formation, EIN, registered agent, and bank account setup.