Compare · States
Which US State Should a Non-Resident Form Their LLC In?
Wyoming, Delaware, Nevada, New Mexico, Florida, and Texas are the six states that dominate non-resident LLC formation. This comparison covers filing fees, annual fees, privacy, franchise taxes, address requirements, and how bank/Stripe KYB treats each state — so you can pick based on your actual use case, not marketing copy.
Wyoming
The default choice for non-resident founders in 2026. Lowest effective cost-of-operation, strong privacy, no state income tax, charging-order protection, and an operator ecosystem built around non-resident formation.
Annual/biennial fee
$60 (License Tax, lowest in the country)
Member privacy
High — members not on public filings
Registered Agent required
Yes
Business address requirement
RA address in WY required; principal office can be anywhere
Mercury/Relay/Stripe perception
Neutral to positive; Mercury rejects specific flagged addresses (Primera RA, Sheridan CMRAs), not Wyoming itself
State income tax on LLC
No state income tax
Fit for non-resident founders
Strongest overall fit
Pros
- Lowest total annual cost-of-operation (≈ $60 + RA fee)
- No state income tax, no franchise tax, no gross receipts tax
- Best-in-class charging-order protection (sole remedy for judgment creditors)
- Strong privacy — members and managers are not publicly listed
- Anonymous LLCs are permitted (names kept off public record)
Cons
- Specific Wyoming addresses (Sheridan CMRAs, Primera RA-heavy buildings) are flagged by banks — address selection matters
- Not a US-resident operator base for most founders, so "doing business in another state" rules (foreign qualification) apply if you have US employees/warehouses
How it compares to Laramie Ledger
Laramie Ledger provides a Wyoming physical-operations-hub via a commercial sublease at 202 S 2nd St, Laramie — a real legal interest in physical space that is distinct from a CMRA or virtual mailbox. This lets Wyoming LLC owners use a different address from their RA on EIN/bank/platform filings, which materially improves Mercury/Relay acceptance.
Delaware
Historical prestige state. Dominant for C-corps raising US VC. For a single-member LLC that does not need that path, Delaware is more expensive and less private than Wyoming.
Annual/biennial fee
$300 (flat Annual Tax, due June 1)
Franchise tax
$300 flat per year for LLCs (higher for corps)
Member privacy
Medium — Certificate of Formation does not list members; Annual Report does not either; members are private
Registered Agent required
Yes
Business address requirement
RA address in DE required
Mercury/Relay/Stripe perception
Positive; banks and investors recognize Delaware first
State income tax on LLC
No state income tax if no DE-source income
Fit for non-resident founders
Good if you plan to raise US VC later; otherwise more expensive than WY
Pros
- Most recognizable brand with US investors
- Court of Chancery — specialized business court with well-developed case law
- Strong privacy — members not on public filings
- No state income tax for non-Delaware-source revenue
Cons
- $300/year flat fee is 5× Wyoming's $60
- If you convert LLC → C-corp later to raise VC, conversion is straightforward in DE but not materially easier than converting from WY
- DE does not have Wyoming's charging-order-as-sole-remedy rule as strongly
- DE address is not itself a "Wyoming advantage" — if you need a US physical operations hub, you still need one somewhere
How it compares to Laramie Ledger
Laramie Ledger serves Wyoming LLCs. If you form in Delaware, Laramie Ledger is not your formation state, but a Wyoming sublease can still be useful if you later re-domesticate to WY or foreign-qualify a WY operating entity.
Nevada
Historically marketed as a privacy + no-tax haven. Fee increases and bureaucratic complexity have eroded the value proposition for non-residents in 2026.
Initial filing fee
$75 Articles + $150 Initial List + $200 Business License = $425
Annual/biennial fee
$150 Annual List + $200 Business License = $350/year
Franchise tax
None (state gross revenue tax exists but only above $4M)
Member privacy
Medium — managers/managing members listed on Annual List
Registered Agent required
Yes
Business address requirement
RA address in NV required
Mercury/Relay/Stripe perception
Neutral; historically associated with shell-company use, which triggers secondary review at some banks
State income tax on LLC
No state income tax
Fit for non-resident founders
Poor vs Wyoming — more expensive, less private, no advantage for non-residents
Pros
- No state income tax
- Strong asset-protection statutes (charging-order protection)
- Established LLC body of law
Cons
- $425 to form (5× Wyoming), $350/year to maintain (6× Wyoming)
- Managers and managing-members are publicly listed on the Annual List
- Some banks apply secondary review to Nevada LLCs due to historical shell-company associations
- Nevada Commerce Tax applies above $4M gross revenue
How it compares to Laramie Ledger
Laramie Ledger is Wyoming-only. For a non-resident founder, Wyoming dominates Nevada on price, privacy, and address flexibility. A Nevada LLC with a Wyoming operations hub is not a common pattern and we do not recommend it.
New Mexico
The "cheapest anonymous LLC" play. $50 once, no annual report. Use case: holding companies with no operations, no bank, and no platform KYB. Poor fit for operating businesses that need banking.
Initial filing fee
$50 (one-time)
Annual/biennial fee
$0 — no annual report required
Member privacy
Very high — no member disclosure on formation, no annual report
Registered Agent required
Yes
Business address requirement
RA address in NM required
Mercury/Relay/Stripe perception
Poor; banks and Stripe treat NM LLCs with extra suspicion due to the privacy profile
State income tax on LLC
No franchise tax; NM income tax only on NM-source revenue
Fit for non-resident founders
Best for pure holdcos with no operations; bad for operating businesses
Pros
- Cheapest in the country — $50 to form, $0 per year
- Highest privacy — no member or manager disclosure at any point
- Simple maintenance — no annual filing at all
Cons
- Mercury, Relay, Stripe, and Airwallex apply elevated scrutiny to NM LLCs
- No established LLC case law compared to DE/WY
- Privacy profile is itself a bank-KYB risk signal
- Charging-order protection is weaker than WY/NV
How it compares to Laramie Ledger
Laramie Ledger does not fit the NM pure-holdco use case. If your goal is to hold an asset (a domain, a brokerage account, IP) with no US banking, NM is viable. For anything that needs a bank, Wyoming + a Laramie Ledger sublease is a much better path.
Florida
For founders who actually intend to be physically present in the US (Miami), or who have Florida customers/warehouses. Not a "pick remotely" state.
Annual/biennial fee
$138.75 (Annual Report)
Franchise tax
None on LLCs
Member privacy
Low — members and managers publicly listed
Registered Agent required
Yes
Business address requirement
Principal office address required; must be real street address
Mercury/Relay/Stripe perception
Positive when you have actual FL presence; neutral otherwise
State income tax on LLC
No state income tax on individuals; LLC pass-through not taxed at state level
Fit for non-resident founders
Good fit only if you have FL-based operations, customers, or physical presence
Pros
- No state income tax
- Strong bank ecosystem for founders with real FL presence
- US customers and warehouse infrastructure (important for e-commerce)
Cons
- Member/manager names on public filings — no privacy
- More expensive than WY on annual fees
- Address scrutiny is high — FL DOS will reject addresses that don't look legitimate
- Only makes sense if you have actual FL business activity
How it compares to Laramie Ledger
Laramie Ledger is Wyoming-based. For a FL LLC operated by a non-resident with actual FL presence, Laramie Ledger is not the right address. For a non-resident with no US presence, Wyoming dominates Florida.
Texas
Large state with robust bank ecosystem and no personal income tax. Franchise tax kicks in above $2.47M revenue (2026 threshold). Not a "remote-only" state — Texas DOS expects real operations.
Annual/biennial fee
No annual fee per se; Franchise Tax Return required (can be $0 if under threshold)
Franchise tax
Franchise tax = 0.375% retail / 0.75% other, above $2.47M revenue
Member privacy
Low — members and managers on Franchise Tax Public Information Report
Registered Agent required
Yes
Business address requirement
Principal office address required; must be real street address
Mercury/Relay/Stripe perception
Positive when you have real TX presence
State income tax on LLC
No state income tax on individuals; franchise tax above threshold
Fit for non-resident founders
Good fit only if you have TX operations; poor remote-only fit
Pros
- No state income tax on individuals
- Strong bank ecosystem (Chase, BoA, Frost, local credit unions)
- Franchise tax only above $2.47M
- Well-developed LLC case law
Cons
- $300 filing fee (3× Wyoming)
- Public Information Report discloses members/managers
- Franchise tax reporting adds compliance overhead even when $0 is owed
- Texas DOS does not tolerate shell-looking filings
How it compares to Laramie Ledger
Laramie Ledger is Wyoming. A Texas LLC for a non-resident with no TX operations is a weaker structure than Wyoming + Laramie Ledger sublease.
Verdict
For the default non-resident founder — overseas, no US employees, USD SaaS or e-commerce, needs a US bank — Wyoming wins on price, privacy, and flexibility. Delaware becomes the right answer only when raising US venture capital is a near-term plan. Nevada no longer offers enough to justify the ~5× annual cost. New Mexico makes sense only for holding companies with no banking. Florida and Texas only fit founders who will actually be physically operating in those states. Across all six, your address choice matters as much as your state choice — a clean, non-CMRA business address is the single biggest controllable KYB variable.
Frequently Asked Questions
Why do most non-resident founders pick Wyoming over Delaware in 2026?
Cost and privacy. Wyoming is $60/year vs Delaware's $300/year, both have strong member privacy, and neither has state income tax for non-resident-sourced revenue. Delaware's advantage — recognition with US venture capital — only matters if you plan to raise US VC soon. For a bootstrapped SaaS or e-commerce operator, the extra $240/year buys nothing useful.
Is New Mexico really the cheapest US LLC?
Yes. $50 to form, $0 per year, no annual report. But banks know this. Mercury, Relay, Stripe, and Airwallex all apply elevated scrutiny to New Mexico LLCs because the same privacy features that attract legitimate holdcos also attract shell companies. If you need US banking or platform KYB, the "savings" disappear the moment your Mercury application is denied.
Does a Nevada LLC still offer a privacy advantage?
Limited. Nevada requires managers and managing-members on the Annual List, which is public. Wyoming, by contrast, does not require members on any public filing. Combined with Nevada's higher fees ($350/year vs Wyoming's $60) and the secondary-review pattern at some banks, Nevada no longer beats Wyoming for non-resident privacy.
If I form a Wyoming LLC but live in New York / California / another US state, do I need to foreign-qualify there?
Probably yes, if you have a physical office, US employees, inventory, or regular in-person meetings in that state. "Doing business" triggers vary by state. Passive ownership alone (WY LLC owning stocks, IP, or a holding position) generally does not trigger foreign qualification. Active operations do. This is one of the most misunderstood topics for US-resident founders of Wyoming LLCs — talk to a state-specific attorney.
Does Stripe accept Wyoming LLCs?
Yes, Wyoming LLCs are fully accepted by Stripe. What Stripe flags is the LLC's business address. Specific Wyoming addresses — Sheridan CMRAs, Primera RA-heavy buildings, PMB addresses — are known quantities in Stripe's risk model and trigger review or denial. A clean non-CMRA address (like a real commercial sublease in Laramie) avoids those flags.
Is a Delaware LLC really recognized by international banks more than Wyoming?
In practice, no. Fintech banks (Mercury, Relay, Airwallex, Wise) treat Delaware and Wyoming equivalently in their underwriting. The difference matters only in specific traditional-bank scenarios (big-four banks with legacy compliance desks) and in investor conversations. For day-to-day KYB, both Delaware and Wyoming pass cleanly.
If I want to form anonymously, is New Mexico the answer?
New Mexico offers the highest legal anonymity (no member disclosure at formation or annually), but anonymity itself is a bank-KYB red flag. Wyoming also offers strong privacy (members not on public filings) without being in the "pure anonymous LLC" pattern-matching bucket, so Wyoming is the better privacy choice for any entity that needs banking or platform KYB.
Does my state of formation affect my US federal tax treatment as a non-resident?
No. Single-member LLCs are disregarded entities federally regardless of state. Multi-member LLCs default to partnership taxation federally regardless of state. Your state of formation affects state-level fees, franchise taxes, privacy, and legal protections — but federal tax is federal and applies identically to a Wyoming, Delaware, or New Mexico LLC. Form 5472 + pro-forma 1120 is required annually for foreign-owned single-member LLCs in all states.