What Is the Best State for a Non-Resident LLC?

Published 3 September 2026 · Reviewed by Ashfaq Khattak, US Tax Consultant

For most non-residents with no US presence, Wyoming. It has no state income tax, does not put members in the public record, and has the lowest annual upkeep of the states that offer both. The exceptions are specific: Delaware if you are raising US venture money, New Mexico if you want no annual report at all, and the state you actually operate in if you have staff, property or inventory there.

The decision in four questions

Do you have staff, an office, property or inventory in a US state? Then that state, or you will register there anyway and pay both. This overrides everything below.
Are you raising US venture money within two years? Delaware, and probably a C-corporation rather than an LLC.
Do you want the fewest possible recurring obligations? New Mexico — the only state with no annual or biennial report.
Otherwise? Wyoming.

Compared

	Wyoming	New Mexico	Delaware	Florida
Members public	No	No	No	Yes, free and searchable
Annual state filing	Yes, anniversary month	None	Flat tax by 1 June	Yes, by 1 May
Late penalty	Loss of good standing	Not applicable	Interest and penalty on the tax	$400, unwaivable
Recurring cost	Low	Lowest	Higher	Moderate
Investors expect it	No	No	Yes	No

Two states to avoid unless you have to: California, at $800 a year minimum whatever you earn, and New York, whose newspaper publication requirement can cost well over $1,000 before you have traded.

What the state does not decide

People overweight this decision. The formation state does not change:

your federal filings — Form 5472 or Form 1065 follow the company everywhere;
your BOI report to FinCEN;
whether a bank will open an account, which turns on you and your business, not your state;
whether your income is US-taxable, which turns on where you and your operations are.

Pick sensibly, then stop thinking about it. The second year of compliance matters far more than the first day’s choice.

Frequently asked questions

What is the best state for a non-resident to form an LLC?

Wyoming for most non-residents with no US presence: no state income tax, members not named in the public record, and the lowest annual upkeep of the states offering both. Delaware if you are raising US venture money, New Mexico if you want no annual report at all.

Which state should I choose if I have staff or inventory in the US?

The state where those people or that stock actually are. This overrides every other consideration — an out-of-state LLC operating in a state has to register there as well, so you would pay both.

Which states should a non-resident avoid?

California, at a minimum of $800 a year whatever you earn and with an aggressive definition of doing business that can reach an out-of-state LLC. And New York, whose newspaper publication requirement can cost well over $1,000 before you have traded.

Does the formation state change my federal filings?

No. Form 5472 or Form 1065 and your FinCEN BOI report follow the company whatever state it is formed in, and the state does not determine whether your income is US-taxable.

Official sources

Rules, forms and fees on this page come from the following official sources, each checked on 2026-09-03. Government fees and deadlines change; confirm the current figure on the agency's own page before you file.