Starting a Limited Liability Company (LLC) in the United States as a non-resident can open the door to international commerce, global partnerships, and U.S. market access. However, one of the most important decisions you’ll face is choosing the right state to form your LLC. In this article, we’ll compare the best states for non-residents to form an LLC in 2025, considering taxes, privacy, costs, and legal flexibility.
Why State Selection Matters for Non-Residents
Not all U.S. states are created equal when it comes to forming an LLC. The state you choose can significantly affect:
- Annual maintenance costs
- Privacy of ownership
- Tax obligations
- Legal protection and structure
- Ease of administration
For non-U.S. residents, who may not physically operate within the U.S., certain states provide better infrastructure and legal benefits.
Key Factors to Consider
1. Tax Policies
Some states do not impose income taxes on LLCs, while others have high corporate tax burdens.
2. Privacy Protection
States like Wyoming and New Mexico offer strong privacy laws that protect the identities of LLC owners.
3. Cost of Formation and Maintenance
Startup and annual fees vary greatly. Some states charge as little as $50, while others require hundreds in recurring fees.
4. Administrative Requirements
The simplicity of filing, paperwork, and ongoing compliance can differ widely between states.
Top U.S. States for Non-Residents to Form an LLC
1. Wyoming
- Formation Fee: $100
- Annual Fees: $60
- No state income tax
- High privacy (no owner disclosure required)
- Low maintenance and strong asset protection
2. Delaware
- Formation Fee: $90
- Annual Franchise Tax: $300
- Favored by investors and startups
- Business-friendly court system (Chancery Court)
- No state income tax on out-of-state income
3. New Mexico
- Formation Fee: $50
- No annual report required
- No state franchise tax
- Offers anonymity (no public listing of owners)
- Budget-friendly and low compliance
Steps to Form an LLC in the U.S. as a Non-Resident
- Choose a State that fits your needs.
- Name Your LLC and check for availability.
- Hire a Registered Agent (must have a physical U.S. address).
- File Articles of Organization with the state.
- Apply for an EIN (Employer Identification Number) from the IRS.
- Open a U.S. Business Bank Account.
- Stay Compliant by submitting any required annual filings.
Final Thoughts
Forming an LLC as a non-U.S. resident in 2025 is more accessible than ever. By choosing the right state, you can minimize costs, protect your identity, and gain access to a robust legal framework. Wyoming, Delaware, and New Mexico stand out as top choices for their favorable laws and low fees.