Which state is cheapest for a non-resident LLC?

New Mexico has the lowest formation cost ($50 filing fee, no annual report fee). Wyoming costs $100 to file plus $60/year. Delaware costs $110 to file plus $300/year franchise tax minimum.

Which state is best for privacy?

Wyoming and New Mexico both offer strong privacy—neither requires public disclosure of member/manager names in formation documents. Delaware requires a registered agent but not member names.

Do I need to live in the state where I form my LLC?

No. You can form an LLC in any US state regardless of where you live. Non-US residents commonly form LLCs in Wyoming, Delaware, or New Mexico because of their favorable laws and costs.

Will I pay state taxes in Wyoming, Delaware, or New Mexico?

Non-resident LLC owners with no physical presence or employees in these states typically do not owe state income tax there. However, you may still have federal tax obligations. Consult a tax professional.

Which state do banks prefer?

Banks generally accept LLCs from any state. Wyoming and Delaware LLCs are very common among non-residents, so banks are familiar with them. State choice rarely affects bank account approval.

Wyoming vs Delaware vs New Mexico LLC for Non-US Founders

Last verified: June 12, 2026 · Sources

Quick Comparison

Factor	Wyoming	Delaware	New Mexico
Filing fee	$100	$110	$50
Annual fee	$60/year (annual report)	$300/year (franchise tax minimum)	$0 (no annual report)
First-year cost	$100	$110	$50
Ongoing cost	$60/year	$300/year	$0/year
Privacy	High (no member disclosure)	High (no member disclosure)	High (no member disclosure)
State income tax	None	None for out-of-state income	None for out-of-state income
Best for	Most non-residents	Raising VC, C-corps	Lowest cost priority

Sources: Wyoming Secretary of State, Delaware Division of Corporations, New Mexico Secretary of State. See full state fee table for all 50 states.

TL;DR: Which State Should You Choose?

Choose Wyoming if you want the best balance of low cost, privacy, and credibility. Most non-resident founders choose Wyoming.
Choose Delaware if you're raising venture capital, forming a C-corp, or your investors/lawyers specifically require it.
Choose New Mexico if minimizing cost is your absolute priority and you don't need the "prestige" association of Wyoming or Delaware.

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Wyoming: The Default Choice for Non-Residents

Wyoming is the most popular state for non-resident LLC formation, and for good reason:

No state income tax on LLC income (Wyoming has no corporate or personal income tax)
Strong privacy – member/manager names are not required in public filings
Low ongoing costs – $60/year annual report fee (based on assets in Wyoming, which for most non-residents is $0)
Business-friendly courts – dedicated business court system
Credibility – widely recognized as a legitimate business jurisdiction

Wyoming Costs (Official)

LLC filing fee	$100
Annual report	$60/year minimum
Registered agent (required)	$50-150/year (third party)

Source: Wyoming Secretary of State Fee Schedule (verified June 12, 2026)

Delaware: The VC and C-Corp Standard

Delaware is famous for business formation—more than 60% of Fortune 500 companies are incorporated there. However, for non-resident LLC founders, Delaware is often more expensive than necessary.

Delaware makes sense if:

You're raising venture capital (many VCs prefer Delaware C-corps)
You're forming a C-corporation, not an LLC
Your lawyers or investors specifically require Delaware

Delaware may not make sense if:

You're bootstrapping and cost-conscious
You're forming a single-member LLC for freelancing or SaaS
You don't have US-based investors requiring it

Delaware Costs (Official)

LLC filing fee	$110 (as of August 2024)
Annual franchise tax	$300/year (flat fee for LLCs)
Registered agent (required)	$50-300/year (third party)

Source: Delaware Division of Corporations Fee Schedule (verified June 12, 2026)

New Mexico: The Low-Cost Option

New Mexico offers the lowest costs of any state for LLC formation:

$50 filing fee – one of the lowest in the US
No annual report – no ongoing state fees
Strong privacy – member names not required in formation documents

The tradeoff: New Mexico is less "prestigious" than Wyoming or Delaware. Some founders worry about perception, though in practice, banks and payment processors don't discriminate based on formation state.

New Mexico Costs (Official)

LLC filing fee	$50
Annual report	$0 (none required)
Registered agent (required)	$50-150/year (third party)

Source: New Mexico Secretary of State (verified June 12, 2026)

What About Taxes?

State taxes: All three states have no state income tax on out-of-state LLC income for non-resident owners with no physical presence in the state. Wyoming has no state income tax at all.

Federal taxes: Your choice of state does NOT affect federal tax obligations. As a non-resident single-member LLC owner, you may still have federal reporting requirements (Form 5472) regardless of which state you form in.

Disclaimer: Tax situations vary. Consult a qualified tax professional for advice specific to your situation.

What About Bank Acceptance?

Banks generally accept LLCs from any US state. Wyoming and Delaware LLCs are extremely common among non-residents, so banks like Mercury, Wise, and Payoneer are very familiar with them. We've seen no evidence that state choice affects bank account approval rates.

A note on Relay: it works for non-resident LLCs but requires a physical US business address (no virtual mailboxes), and in 2026 it has increasingly asked applicants for an SSN/ITIN. Verify its current requirements before relying on the "no SSN" path.

What does affect bank acceptance: your country of residence, business type, website quality, and application completeness. See our bank acceptance matrix (coming soon) for country-specific data.

Sources

Wyoming Secretary of State – LLC Fee Schedule (verified June 12, 2026)
Delaware Division of Corporations – Fee Schedule (verified June 12, 2026)
New Mexico Secretary of State – Start a Business (verified June 12, 2026)

Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Consult a qualified professional for advice specific to your situation.