Registering your business under the right U.S. state is crucial. The best choice depends on your specific needs—especially if you don’t live in the U.S. Below you’ll find practical guidance to help you decide wisely.
✅ 1. Start in Your Home State
Forming your LLC in the state where you personally or operationally reside often offers the simplest path. This avoids the need for “foreign qualification” and eliminates extra fees and filings reddit.com+2reddit.com+2reddit.com+2reddit.com+13forbes.com+13stripe.com+13.
Pros:
- Only one set of filing fees
- No need to register again or appoint another registered agent
- Lower compliance burden
2. Consider Business-Friendly Alternative States
If your business is purely online or you want better tax or privacy benefits, these states are top contenders for non-residents:
🏛 Delaware
- No state income tax on out-of-state earnings
- High legal stability thanks to the renowned Delaware Court of Chancery
- Privacy for LLC members (names remain confidential) forbes.comreddit.com+5legalzoom.com+5terms.law+5globalization.guide+2stripe.com+2reddit.com+2reddit.com+12wise.com+12terms.law+12
- Flat annual franchise tax (~$300)
🏜 Wyoming
- No state income tax
- Very low fees (approx. $100 formation + $60 annual report)
- Strong asset protection and strong privacy (no public member listing) reddit.com+15wise.com+15legalzoom.com+15clemta.combusinessanywhere.io+4chamberofcommerce.org+4corpifyinc.com+4
🌎 New Mexico
- Formation fee around $50, with no annual fees or franchise tax
- Anonymity for members (not publicly listed) reddit.com+15wise.com+15globalization.guide+15reddit.com+3chamberofcommerce.org+3corpifyinc.com+3
🌄 Nevada
- No state income tax
- Solid privacy protections
- Includes annual business license (~$200) and moderate filing fees legalzoom.com+15wise.com+15reddit.com+15
✅ 3. Remember Foreign Qualification Requirements
If you form your LLC out-of-state but operate elsewhere (even remotely), you’ll often need to register as a “foreign LLC” in each state where you do business. This adds extra costs and compliance layers reddit.com+15forbes.com+15stripe.com+15.
✅ 4. Compare State Fees & Compliance
Here’s a quick comparison:
| State | Formation Fee | Annual Fee | Privacy | State Tax |
|---|---|---|---|---|
| Home State | Varies | Varies | Varies | Varies |
| Delaware | ~$90–$110 | $300 | Anonymous | No on foreign income |
| Wyoming | ~$100 | ~$60 | Anonymous | None |
| New Mexico | ~$50 | None | Anonymous | None |
| Nevada | ~$75 | ~$200* | Anonymous | None |
*Includes business license not franchise tax
✅ 5. Match State Choice to Your Business Goals
- Use Wyoming if you want affordable, private, and hassle-free formation
- Choose Delaware if pursuing investment, legal prestige, or complex structures
- Pick New Mexico for maximum privacy and lowest ongoing cost
- Use Nevada if you prefer its privacy and suite of asset protection laws
✅ 6. Final Words
For most non-residents operating online, Wyoming or New Mexico offers the best combination of affordability, privacy, and simplicity. Delaware is ideal for startups aiming to attract venture capital, while forming in your home state avoids dual-state complications.
👉 Always verify state-specific rules and fees via official government sites, and consult an accountant or attorney if needed to ensure compliance with U.S. and foreign tax laws.