On this page · 8 sections
| If you are | Choose | Why |
|---|---|---|
| Selling services or software from abroad, with no US presence | Wyoming | Low yearly cost, $60, private ownership, and banks see it all the time. |
| After the lowest cost of all, and patient with bank questions | New Mexico | Nothing to pay yearly and no owners on record. Banks know it less well. |
| Raising from US investors | Delaware, as a C-Corporation | What venture paperwork assumes. |
| Opening an office, hiring or keeping stock in one state | That state | You'd register there anyway, and pay two states if you formed elsewhere. |
| Told by a bank, marketplace or licence to use a state | That state | Their rule decides it. |
- The yearly charge matters. You'll pay it for as long as the company exists. You file once, but the report or tax comes round every year.
- The public record matters. Some states list members or managers on the articles or the yearly report, and some list nobody. From abroad, a public list of owners costs you privacy and gains you nothing.
- Familiarity matters more than people expect. Banks and payment processors review a lot of non-resident companies, and the states they see most often raise the fewest questions.
- State income tax mostly doesn't. An LLC that doesn't operate in a state generally owes that state no income tax, whatever the rate. It matters only if you'll operate there.
- The filing fee barely matters. You pay it once. Five years of yearly charges usually cost far more.
| State | To file | Every year | Five years | Owners public | Familiar to banks |
|---|---|---|---|---|---|
| Wyoming | $102.40 online | $60 | $342.40 | No | High: a common home for non-resident companies |
| Delaware | $110 | $400 | $1,710 to $2,110 | No | Highest with investors, at a yearly price |
| New Mexico | $50 | Nothing; no annual report | $50 | No | Lower: less history with non-resident banking |
| Nevada | $425 | $350 | $1,825 | Yes | Known mostly for a privacy reputation it no longer earns |
Wyoming is the best fit for most founders abroad forming an LLC, and it's the state we recommend. Delaware is the choice for a company that will raise money, because investors expect it, and it charges $400 a year for that, up from $300 in 2026, which many comparisons still quote. New Mexico comes closest to Wyoming: it costs less to keep and is just as private, but banks and processors know it less well, and for most founders that's worth more than $60 a year. Nevada is the one people remember from years ago. It now costs $350 a year, and its yearly list of managers or members is public.
Ranked by what the state charges over five years, counting only states that keep owners off the record and ask for no newspaper notice. All of them are cheaper than Wyoming. What they lack is Wyoming's familiarity to the banks and payment processors that review a founder abroad.
| State | To file | Every year | Five years |
|---|---|---|---|
| Missouri | $50 | Nothing | $50 |
| New Mexico | $50 | Nothing | $50 |
| Ohio | $99 | Nothing | $99 |
| Idaho | $100 | Nothing | $100 |
| Iowa | $50 | $15 | $110 to $140 |
| Colorado | $50 | $25 | $150 |
| State | To file | Every year | Five years |
|---|---|---|---|
| California | $70 | $800 | $4,130 to $4,930 |
| Massachusetts | $520 | $520 | $2,600 |
| Rhode Island | $150 | $450 | $2,350 to $2,400 |
| Tennessee | $300 | $400 | $2,000 to $2,300 |
| Nevada | $425 | $350 | $1,825 |
| Delaware | $110 | $400 | $1,710 to $2,110 |
The filing fee is a poor guide to cost. Some states that are cheap to file in are dear to keep: Arkansas ($45 to file, $645 to $795 over five years), Kentucky ($40 to file, $975 to $990 over five years) and California ($70 to file, $4,130 to $4,930 over five years). Read the yearly line first. LLC fees by state ranks all 51, and downloads as a spreadsheet.
Members or managers named on the public record: Alaska, Arizona, Arkansas, California, Georgia, Hawaii, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Mississippi, Montana, New Hampshire, New Jersey, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia and Wisconsin.
A newspaper notice required after forming: New York and Nebraska, and Arizona unless the statutory agent is in Maricopa or Pima County. Every state has its own page, with the figures and a straight answer on whether a founder abroad should form there.
Both come up because neither has a personal income tax. Neither is a good home for a company run from abroad unless it operates there. Florida's annual report is $138.75 a year, and costs $400 more if it's filed after 1 May. Over five years the state takes $680, or $818.75 if formed after 1 May. Texas charges $300 to file and names its managers or members on the record. For a business that will actually be in Florida or Texas, they're the right choice, because you'd register there anyway.
When the business will physically be there: staff, an office, a warehouse or property. A company that operates in a state has to register there wherever it was formed, so forming somewhere else first means paying two states every year. Foreign qualification explains when that starts. If the business has a home state, form it there. If it doesn't, form it in Wyoming.
Sources
Checked by Saais Patel against these official pages.
Next in Starting out:Do you need a US visa, or to visit, to own and run a US company?