Best State for Non-Resident LLC Formation

Best U.S. State to Form an LLC as a Non-U.S. Resident

For non-U.S. residents starting a U.S. business, choosing the right state for LLC formation is an important decision. The best state depends on your business type, where you will operate, taxes, privacy, and ongoing compliance costs.

Wyoming is often attractive for small online businesses because of its relatively low ongoing costs, no state individual income tax, and business-friendly environment.

Delaware is a popular choice for startups and companies expecting outside investors because of its well-established business laws and courts. However, it can be more expensive than some alternatives.

New Mexico can also be considered by non-residents because of its relatively simple LLC requirements and potentially lower ongoing costs.

For many non-U.S. residents running an online business without a physical U.S. operation, Wyoming, Delaware, or New Mexico may be worth considering. However, forming an LLC in a particular state does not automatically eliminate U.S. federal tax or reporting obligations.

Before choosing a state, consider the LLC's annual fees, registered-agent requirements, federal tax obligations, banking needs, and where the business will actually operate.

Updated on: 21/08/2026