Wyoming, New Mexico, Delaware, Florida or Texas: which state for your LLC?
As a non-resident, you can form your LLC in any state. Here is how Wyoming, New Mexico, Delaware, Florida and Texas really compare on yearly cost, privacy and reputation, and which one fits you.
What is the best state for an LLC when you live outside the United States? Start with the good news: you are free to choose. As a non-resident, you have no “home” state to form in, and you don’t have to form where your clients are.
What matters is the mix of yearly cost, privacy and reputation that fits what you actually do, and whether you have real ties to a particular state. This guide compares the five states we work with. The short answer: for most non-residents, it is Wyoming. The longer answer explains when it isn’t.
New to LLCs? Start with our step-by-step guide to forming a US LLC as a non-resident.
The four criteria that actually matter
Forget the endless lists of state “advantages”. For a non-resident’s LLC, four things make the difference:
- Yearly cost. You pay the formation fee once, but the state’s yearly fee comes back for as long as the LLC exists. Over time, it is the number that weighs most.
- Privacy. Some states keep members’ names out of the public record; others publish them.
- Reputation. Banks, payment providers and partners don’t know every state equally well. Delaware has the prestige, Wyoming a solid name, and New Mexico is slightly less known by some banks and partners.
- Real ties to the state. Property, clients on the ground, a planned move: a genuine connection can justify a particular state. Without one, there is no reason to pay more for it.
Notice what isn’t on the list: “no state income tax”. It sounds decisive, but it only concerns one of three tax layers, as the myths below explain.
The five states side by side
The fees below are what each state charges at the time of writing (October 2026), in US dollars. They can change, so check each state’s page for the latest figures.
| State | Formation | Every year | Members’ names public? | Best for |
|---|---|---|---|---|
| Wyoming | $100 | Annual report, license tax from $60 | No (not in the formation filing) | Most non-residents |
| New Mexico | $50 | Nothing: no report, no fee | No (not required) | The tightest budgets |
| Delaware | $110 | $300 annual LLC tax | No (not in the formation filing) | Startups raising venture capital, usually as a C-Corp |
| Florida | $125 | $138.75 annual report | Yes (members or managers) | A real link to Florida |
| Texas | $300 | Annual report; no tax below several million dollars of revenue | Yes (managers or members) | A real activity in Texas |
Wyoming: the default choice
Wyoming is our default recommendation for most non-residents. Formation costs $100. Every year, the LLC files an annual report, due on the first day of its formation anniversary month, with a license tax of $60 minimum — more only if the LLC holds significant assets located in Wyoming. There is no state income tax, and members’ names are not part of the public formation filing.
Put together, that is the best overall balance of cost, privacy, reputation and simplicity. The one thing to watch is the date: an LLC formed in March owes its report on March 1 of every following year, so put it in your calendar on day one.
See our Wyoming page, or start your Wyoming LLC.
New Mexico: the cheapest to keep
New Mexico charges $50 to form an LLC — and then nothing. There is no annual report and no annual state fee for LLCs, and members’ names are not required in the public record. Year after year, it is the cheapest of the five to keep.
The trade-off is reputation: New Mexico is slightly less known by some banks and partners, which is worth knowing before you open your US bank account. And “no state report” doesn’t mean “no obligations”: your LLC still needs a registered agent and, if you are its single foreign owner, a yearly Form 5472 for the IRS.
See our New Mexico page, or start your New Mexico LLC.
Delaware: the startup legend, often oversold
Delaware has the prestige, and the Court of Chancery, its specialized business court. It is the reference for startups raising venture capital. But those startups usually need a C-Corporation, not an LLC — so much of Delaware’s reputation serves a structure you are probably not forming.
For an LLC, the costs are real: $110 to file the Certificate of Formation, then a $300 annual LLC tax, due June 1 every year. Next to Wyoming’s $60 minimum, that is $240 more, every single year. For a solo LLC run from abroad, Delaware is rarely the best value.
See our Delaware page, or start your Delaware LLC if it truly fits your plans.
Florida: when your business has a link there
Florida costs $125 to form: a $100 filing fee plus $25 for the registered agent designation. The annual report then costs $138.75 and is due between January 1 and May 1. Miss May 1, and a $400 late fee applies.
There is no state income tax for individuals, but members or managers appear in public records. Florida is a sound choice when your business has a real connection to the state — property, clients there, a future move — and a less obvious one otherwise.
See our Florida page, or start your Florida LLC.
Texas: when you have a real activity there
At $300, Texas has the highest formation fee of the five, and no state income tax. Its franchise tax isn’t due below a revenue threshold of several million dollars, but the LLC still files an annual report — the Public Information Report or Ownership Information Report — by May 15, even when it owes nothing.
Like Florida, Texas makes sense when your business has a real activity there. For an online business run from abroad, it is rarely the first pick.
See our Texas page, or start your Texas LLC.
Three myths to forget
“Delaware is mandatory for credibility.” It isn’t. Delaware’s reputation matters most to venture capital investors, who usually want a C-Corporation anyway. What banks and payment providers ask for is a properly formed LLC, an EIN and complete documents.
“A state without income tax means no tax.” There are three separate layers. The state: Wyoming and Texas have no state income tax, and Florida has none for individuals. The federal level: whether your LLC owes US income tax depends on whether it has a US trade or business, not on its state. And your home country, where you remain taxable whatever state you choose.
“I must form where my clients are.” No. The state where your LLC is registered and the places where your clients live are two separate questions. Property, clients on the ground or a planned move can make a state a sensible choice — that is the Florida and Texas case — but it is an option, not an obligation.
Our recommendation by profile
- Freelancer or consultant working from abroad: New Mexico if keeping costs down is your priority, Wyoming if you prefer the better-known name.
- E-commerce or Amazon seller: Wyoming, whose balance of cost, privacy and reputation suits a business that deals with platforms and payment providers every day.
- Holding or real estate in Florida: Florida, since your business has a real connection there. The same logic applies to a real activity in Texas.
- Startup planning to raise venture capital: usually a Delaware C-Corporation, not an LLC. Talk to a lawyer before you form anything.
Still hesitating? Wyoming is the safe default for most non-residents. These are general pointers, not legal or tax advice: if your project has an unusual twist, have it checked by a professional.
FAQ
Can I change state later?
Yes, it is possible: through a conversion or domestication, or by forming a new entity. But it depends on the rules of both states involved, and it costs money. Better to choose well from the start.
Does the state change my federal taxes?
No. The IRS treats your LLC the same way whatever its state: by default, a single-member LLC is a disregarded entity and a multi-member LLC is taxed as a partnership. What changes from one state to another is the state level — fees, annual reports, privacy.
Which state is the cheapest for an LLC?
New Mexico: $50 to form, no annual report and no annual state fee. You still renew your registered agent every year and, as a single foreign owner, file Form 5472 with the IRS.
Do I have to live in, or visit, the state I choose?
No. Your registered agent provides the physical address the state requires, and the whole process is done remotely. You never need to set foot there.
Made your choice? Start your LLC and pick your state — or go straight to our default recommendation with a Wyoming LLC.