In short: For most non-resident founders in 2026, Wyoming wins — low fees, strong privacy, no state income tax, minimal annual hassle. Delaware is the pick if you plan to raise venture capital or convert to a C-Corp later, but costs more yearly. New Mexico is cheapest to maintain (no annual report, no annual fee) but offers less prestige. Your business model decides.
Key takeaways:
- Wyoming: best all-rounder — ~$100 formation, ~$60/year minimum, strong privacy, no state income tax.
- Delaware: best for startups chasing investment — prestigious courts, but $300/year franchise tax.
- New Mexico: cheapest long-term — $50 formation, zero annual reports or fees — less recognized by banks/investors.
- For non-residents with no US physical presence, none of the three typically creates state income tax liability.
- You can change states later (domestication), so don’t let this decision paralyze you.
The Quick Comparison
| Wyoming | Delaware | New Mexico | |
|---|---|---|---|
| Formation filing fee | ~$100 | ~$110 | ~$50 |
| Annual cost | ~$60 min. | $300 franchise tax due June 1 | $0 |
| Annual report | Yes, anniversary month | No report, $300 tax June 1 | None |
| State income tax | None | None for LLCs not operating in DE | Exists but generally not owed by non-residents with no NM activity |
| Owner privacy | Strong | Strong | Good |
| Legal infrastructure | Good | Best — Court of Chancery | Thinner |
| Investor perception | Solid | Gold standard | Weakest |
| Best for | Freelancers, agencies, e-commerce | Startups planning to raise funding | Budget-conscious founders |
Wyoming: The All-Rounder
Lowest practical annual cost with genuine privacy and zero state income tax (~$100 formation, ~$60/year minimum). Members not listed publicly; strong asset-protection statutes. Annual report mandatory in anniversary month — miss it and face dissolution. Best for: freelancers, consultants, agencies, e-commerce, SaaS.
Delaware: The Investor’s Choice
Court of Chancery, deep case law, VC familiarity; easy LLC-to-C-Corp conversion. $300 annual franchise tax due June 1 (~$110 formation). Most expensive to maintain — prestige you pay for annually. Best for: startups planning to raise venture capital.
New Mexico: The Budget Champion
$50 formation, no annual report, no annual fee ever. Less familiar to banks/processors/investors; thinner case law. Best for: cost-conscious founders, holding companies, simple structures.
Which State Should YOU Choose?
Choose Wyoming if you’re a freelancer, agency owner, e-commerce seller, or SaaS founder. Choose Delaware if venture funding is in the plan. Choose New Mexico if minimizing lifetime cost is the top priority. Note on foreign qualification: forming in one state doesn’t restrict where you do business; physical presence elsewhere may require registration there — rarely an issue for fully remote founders.
Can You Change States Later?
Yes — via domestication or forming a new LLC and winding down the old one. Pick the best fit for the next 2–3 years.
FAQ
Is Wyoming really the best state for non-residents? For most online businesses, yes — best balance of fees, privacy, credibility. Delaware wins for fundraising, New Mexico for minimum cost.
Do I pay state income tax as a non-resident LLC owner? Generally no in any of these three with no physical activity there.
Which state is cheapest overall? New Mexico — $50 to form, $0/year. Then Wyoming (~$60/year), then Delaware ($300/year).
Does Delaware really help with raising investment? Yes — the standard US investors expect.
Can I form in one state but live in another country? Absolutely — non-residents form LLCs in all three states remotely every day.
What happens if I miss Wyoming’s annual report? Penalties and eventual administrative dissolution — set a calendar reminder, or use a formation service that tracks compliance.
Pick your state, we’ll handle the paperwork. Epics Deals forms your US LLC in Wyoming, Delaware, New Mexico, or any state — from $130 + state fee, with EIN support and ongoing compliance guidance. Start at https://epicsdeals.com or chat with us on WhatsApp.
Related: US LLC taxes for non-residents