Quick Verdict: Which State for Which Founder
Wyoming
$100 formation · $60/year · Strong privacy- Member names not required in public filings
- $60/year annual report — among the lowest ongoing costs
- No state income tax for LLCs
- Strong limited liability protections under Wyoming law
- Charging order protection — creditors cannot take your LLC membership
- Professional credibility — widely recognized, no stigma
- Foreign address acceptable for principal office
New Mexico
$50 formation · $0/year · Maximum simplicity- No annual report required — ever
- $0 in ongoing state compliance fees
- Member names not required in Articles
- Lowest total cost of any US state over time
- Simple, streamlined formation process
- Less recognized than Wyoming but legally identical protections
- Best pick for bootstrapped founders or multiple LLCs
Delaware
$90 formation · $300/year franchise tax- Gold standard for US venture capital and institutional investors
- Court of Chancery — most sophisticated US business court
- Flexible corporate governance preferred by investors
- $300/year franchise tax (minimum) — highest ongoing cost
- Member names not required in Articles
- Only worth it if you are actively seeking US VC investment
- Most startup accelerators require Delaware C-Corp, not LLC
Florida
$125 formation · $138.75/year annual report- Strong option if you plan to live or work in Florida
- No state income tax — tax-friendly for operations
- Large international business community (especially Latin America)
- $138.75/year annual report — mid-range cost
- Not the best choice for purely remote businesses
- Good for e-commerce, real estate, or service businesses operating in FL
Why State Selection Matters for Non-US Residents
The most important thing to understand first: the state you register your LLC in is not where you have to operate your business. You can form a Wyoming LLC and run your business entirely from Turkey, Germany, or Brazil. The state of formation determines:
- Annual compliance cost: The state's annual report fee is the primary recurring cost tied to your state choice. This ranges from $0 (New Mexico) to $300+ (Delaware) per year.
- Privacy: Whether your name appears as a public record associated with the LLC. Wyoming and New Mexico don't require member names. California requires full disclosure.
- LLC law strength: The legal protections your LLC structure provides. Wyoming has the strongest LLC protections in the US, including charging order protection.
- Registered agent requirement: Every state requires a registered agent with a physical address in that state. The state you choose determines which registered agent service you need. For all 15 states Monezzi supports, this is handled automatically.
- Investor perception: While Wyoming is respected for operational businesses, investors seeking equity stakes often prefer Delaware C-Corps — but this only matters if you are actively fundraising.
Wyoming LLC — Deep Dive
Wyoming pioneered the LLC structure in 1977 — it invented the entity type that the rest of the US eventually adopted. This long history means Wyoming's LLC law is mature, well-tested, and extremely favorable to business owners. The annual report fee of $60 is paid on the first day of the anniversary month of formation — not January 1 — which means your first annual report may not be due for almost a full year after formation.
Wyoming's charging order protection is the strongest in the country: if a creditor wins a judgment against you personally, they cannot take your Wyoming LLC membership interest. This is a significant asset protection feature unavailable in most other states. Wyoming also allows single-member LLCs to be completely anonymous — your name never needs to appear in any public state filing.
The $60/year total ongoing cost makes Wyoming the most cost-effective premium state for non-US residents who want strong protections, professional credibility, and privacy without paying Delaware-level annual fees.
New Mexico LLC — Deep Dive
New Mexico is the only US state with no annual report requirement for LLCs. You pay the $50 formation fee once, and your only recurring costs are: your registered agent service and the federal Form 5472 filing obligation. This makes New Mexico the lowest total cost state for any LLC that plans to remain active for multiple years.
Member names are not required in New Mexico's Articles of Organization, providing the same privacy advantage as Wyoming. The state's LLC law provides solid protections, though Wyoming's charging order protection is considered stronger. New Mexico is less frequently encountered in professional circles than Wyoming or Delaware, but this rarely matters for operational businesses.
New Mexico is an excellent choice for founders who are running multiple LLCs simultaneously (multiple products, multiple projects, multiple markets), where minimizing the per-LLC annual cost matters significantly. It is also ideal for LLCs that may be dormant or low-activity for extended periods — you pay nothing to maintain it annually.
Delaware LLC — Deep Dive
Delaware's reputation as the "gold standard" for business formation is real — but it is specifically the gold standard for corporations seeking equity investment from US institutional investors. Over 60% of Fortune 500 companies are incorporated in Delaware. The Court of Chancery, Delaware's specialized business court, has centuries of case law that gives investors and lawyers predictable outcomes in disputes.
However, this investor-friendly advantage is almost entirely irrelevant for small and medium businesses that are not raising VC funding. The $300 minimum annual franchise tax (which can increase dramatically with LLC size) makes Delaware the most expensive state to maintain an LLC long-term. Most serious startup accelerators require Delaware C-Corporations (not LLCs) for equity investment, so forming a Delaware LLC specifically for investment is often the wrong vehicle anyway.
Form in Delaware if: You are actively in fundraising conversations with US venture capital or institutional investors, or your legal team or accelerator specifically requires Delaware. Do not form in Delaware if: You are building a bootstrapped or revenue-based business — the annual cost premium provides no benefit.
Florida LLC — Deep Dive
Florida is the best state to form an LLC if your business has actual operations in Florida — employees, office space, clients or customers located in Florida, or if you plan to move to Florida. For Florida residents forming a business, registering locally avoids the need to register as a "foreign LLC" in Florida (which incurs additional fees and complexity).
Florida has no state income tax and a business-friendly regulatory environment. The $138.75 annual report fee is mid-range. However, unlike Wyoming and New Mexico, Florida's Articles of Organization typically include member names in the public record — meaning there is less privacy protection for LLC owners.
For a purely remote, international business with no Florida nexus, Wyoming and New Mexico provide better value. Florida adds cost without privacy advantage for businesses that have no genuine connection to the state.
Head-to-Head: Wyoming vs New Mexico vs Delaware vs Florida
| Feature | Wyoming | New Mexico | Delaware | Florida |
|---|---|---|---|---|
| Formation fee | $100 | $50 | $90 | $125 |
| Annual fee | $60/yr | $0/yr | $300+/yr | $138.75/yr |
| Member names public? | No — private | No — private | No — private | Yes — public |
| LLC law strength | Strongest in US | Strong | Strong (corp focus) | Good |
| Charging order protection | Strongest | Good | Good | Good |
| Investor recognition | Good (operational) | Adequate | Best (VC/PE) | Good |
| Processing time | 24–48h | 24–72h | 24–48h | 24–72h |
| Annual report deadline | Anniversary month | None | June 1 | May 1 |
| Best for | Most non-residents | Cost-minimizers, multiple LLCs | VC-backed startups | Florida-based operations |
Which State Is Best for Your Situation
Running an online business from outside the US
Selling products, services, SaaS, or consulting globally with no US employees or office. No plans to move to the US in the near term.
Minimizing total annual cost across one or more LLCs
Running multiple products or projects each under a separate LLC, or operating a low-revenue LLC where every annual dollar matters.
Keeping your name out of public business records
Wanting maximum privacy — not having your name attached to the LLC in any public state database, for personal or professional reasons.
Actively fundraising from US venture capital
In active conversations with US VCs, angels, or institutional investors who specifically require or prefer Delaware. The $300/year premium is acceptable given fundraising goals.
Moving to or operating in a specific US state
Planning to open a physical office, hire US-based employees, or relocate personally to a specific US state. Operating locally makes local registration the practical choice.
Agency, consulting, or professional services billing US clients
Selling B2B services to US enterprise clients who may check your LLC registration. Need credibility and clean standing. Privacy is secondary to professional presentation.
Common State Selection Mistakes
- Forming in your home country's most-recognized US state — Many founders default to California or New York because they have heard of them. For non-US residents running remote businesses, forming in California or New York adds state income tax complications, high annual fees, and compliance requirements with zero benefit for a non-resident founder.
- Forming in Delaware because "it sounds prestigious" — Delaware's advantages are specifically for corporations seeking institutional investment. For an LLC running a SaaS business from abroad, the $300/year franchise tax provides no return. Wyoming or New Mexico deliver the same liability protection at a fraction of the cost.
- Confusing state of formation with state of operation — A Wyoming LLC can operate globally. Forming in Wyoming does not require you to have customers in Wyoming, a Wyoming bank account, or any Wyoming presence. The formation state is simply a legal jurisdiction, not a geographic constraint on your business.
- Not accounting for annual report deadlines — Wyoming's annual report is due on the anniversary month of formation (not January 1). Delaware's franchise tax is due June 1. Florida's annual report is due May 1. Missing annual report deadlines triggers late fees and eventually administrative dissolution.
- Ignoring Form 5472 regardless of state — Whichever state you form in, IRS Form 5472 with a pro forma Form 1120 is due March 31 every year for all foreign-owned single-member LLCs. This is a federal obligation — state selection does not affect it.
Best State to Form an LLC — Frequently Asked Questions
What is the best state to form an LLC?
For most non-US residents, Wyoming is the best state to form an LLC. It offers strong privacy (no member names in public records), the strongest LLC law and charging order protection in the US, no state income tax, and a low $60/year annual report fee. If minimizing annual cost is the top priority, New Mexico is the best state — it has no annual report requirement at all, meaning zero recurring state fees after the initial $50 formation cost.
What is the best state to register an LLC for a non-US resident?
Wyoming and New Mexico are consistently the best states to register an LLC for non-US residents. Both offer: no requirement to list member names in public records, no state income tax on LLC pass-through income, low formation fees, and acceptance of foreign addresses. Wyoming adds the strongest charging order protection in the US and greater professional recognition. New Mexico adds zero annual report fees. The choice between them depends on whether the $40/year difference in annual fees matters to your situation.
Is it better to form an LLC in Wyoming or Delaware?
For most operating businesses and remote founders, Wyoming is better than Delaware. Delaware's advantages — Court of Chancery expertise and VC investor preference — are specifically relevant for corporations seeking institutional investment. For an LLC run by a non-US resident without active fundraising plans, Delaware's $300/year franchise tax premium provides no benefit compared to Wyoming's $60/year. Wyoming's LLC law is actually stronger than Delaware's for protecting business owners from personal liability.
Does it matter which state I form my LLC in if I live outside the US?
Yes, but only for cost, privacy, and legal protection purposes — not for where you can do business. A Wyoming LLC or New Mexico LLC can operate globally, serve clients anywhere, and hold a US bank account with Mercury or Relay. You do not need to have any physical presence in your formation state. The state you choose determines your annual compliance cost, whether your name appears in public records, and the strength of your LLC's liability protections.
Can I change my LLC's state of formation later?
Yes, through a process called domestication or conversion — moving the LLC from one state to another. However, this process varies by state, involves legal and administrative costs, and may have tax implications depending on your situation. It is far simpler to choose the right state at formation than to migrate later. If you are unsure, Wyoming's combination of quality, cost, and flexibility makes it the safest default choice.
What is the cheapest state to form and maintain an LLC?
New Mexico is the cheapest state to form and maintain an LLC over time. The one-time formation fee is $50 — the lowest of the major LLC-friendly states — and there is no annual report requirement, meaning zero recurring state fees. The only ongoing cost for a New Mexico LLC is the registered agent service (included in Monezzi's formation packages). Over five years, a New Mexico LLC costs $50 total in state fees, versus $350 for Wyoming and $1,600 for Delaware.
Is Wyoming or New Mexico better for an LLC?
Wyoming wins on legal protections (strongest charging order protection in the US, more developed LLC case law), professional recognition, and privacy features. New Mexico wins on cost (no annual report fee, $50 formation vs $100). For most founders running active businesses where professional credibility matters, Wyoming is the better choice. For founders running passive LLCs, holding companies, or multiple LLCs simultaneously where cost minimization is critical, New Mexico is better.
Do I need to form my LLC in the state where my customers are?
No. The state of LLC formation is independent of where your customers are located. A Wyoming LLC can serve customers in New York, California, Texas, or internationally without any issue. If your LLC has a physical office or employees in another state, you may need to register as a "foreign LLC" in that state — but this is a separate registration (not a new formation) that allows you to legally conduct business locally. For remote businesses, there is no practical reason to form in your customers' states.
Wyoming is the best state to form an LLC for most non-US residents: strong protections, privacy, no state income tax, and only $60/year. New Mexico is the best state for founders who want the absolute lowest ongoing cost — no annual report, ever. Delaware only makes sense if you are actively raising US venture capital. Florida only makes sense if you have actual operations in Florida.
Monezzi supports LLC formation in all 15 major states — including Wyoming, New Mexico, Delaware, and Florida. Choose your state and form your LLC → or compare all 15 states in detail →