You can form a U.S. LLC in any of the fifty states, and you don’t have to live in — or even visit — the one you pick. For non-resident founders without a physical U.S. presence, three states come up again and again. Here’s how to choose between them.
Wyoming — the default for most
Low cost ($60 annual report), no state income tax, strong privacy, and a well-understood LLC statute. For a founder running a service or software business from abroad with no specific reason to be elsewhere, Wyoming is the sensible default.
Delaware — when you’ll raise money
Delaware’s appeal is its court system and the fact that U.S. investors expect it. If you’re building something venture-backable and will likely convert to a Delaware C-corp later, starting in Delaware can save a migration. The cost is a flat $300 franchise tax and slightly higher formation overhead. For a bootstrapped business, that premium buys little.
New Mexico — minimum upkeep
New Mexico LLCs file no annual report and pay no annual fee — the lowest ongoing maintenance of the three. The trade-off is fewer touchpoints and a less established LLC case law than Wyoming or Delaware.
How to actually decide
- Bootstrapped, run from abroad, want simplicity: Wyoming.
- Planning to raise U.S. venture capital: Delaware.
- Want the least possible annual upkeep: New Mexico.
Whatever you choose, you’ll need a registered agent in that state, and you’ll inherit that state’s annual obligations — which is the next thing to plan for, not an afterthought.
This resource is general information for non-U.S. owners of U.S. LLCs and was reviewed for accuracy in May 12, 2026. It is not legal or tax advice for your specific situation. Penalty figures are illustrative maximums published by the relevant agencies.