New Mexico LLC vs Wyoming LLC is a common comparison among entrepreneurs, especially those who seek low-cost, private, and tax-friendly environments to form a limited liability company. Both states are considered business-friendly, but they differ in key aspects that can significantly affect your decision. In this comprehensive guide, we’ll break down the pros, cons, costs, privacy features, compliance requirements, and more to help you choose between a New Mexico LLC and a Wyoming LLC.
1. Formation Costs When comparing New Mexico LLC vs Wyoming LLC, the first thing to consider is the cost to form an LLC.
- New Mexico LLC: One of the cheapest states to form an LLC. The state filing fee is just $50 (one-time fee), and there are no annual fees or franchise taxes.
- Wyoming LLC: The filing fee is $100, and there is an annual report fee of $60 minimum.
If you’re seeking the lowest ongoing cost, New Mexico wins in terms of affordability.
2. Annual Reporting and Fees
- New Mexico: No annual reports or fees required.
- Wyoming: Annual report required with a $60 fee (or 0.0002 of assets located in Wyoming).
From a compliance perspective, New Mexico LLCs offer a more passive setup.
3. Privacy and Anonymity One of the main reasons people compare New Mexico vs Wyoming LLCs is anonymity.
- New Mexico: Allows full anonymity for LLC owners. The names of members and managers are not required on the public record.
- Wyoming: Also provides strong privacy. Only the registered agent’s information is public. Members’ names are not listed.
Both states are excellent for anonymous LLC formation, but New Mexico is slightly better due to having no annual filings that might risk exposing information.
4. Asset Protection
- Wyoming LLC: Offers superior asset protection laws, including protection from charging orders and single-member LLCs.
- New Mexico LLC: Offers standard LLC protections but does not match the strength of Wyoming’s statutes.
If you’re concerned about lawsuits and personal liability, Wyoming is the better choice.
5. Business-Friendly Environment
- Wyoming: Consistently ranked as one of the most business-friendly states. It has no corporate income tax, no personal income tax, and a stable regulatory environment.
- New Mexico: Has no franchise taxes for LLCs and is fairly business-friendly, though not as aggressively pro-business as Wyoming.
6. Registered Agent Requirements Both states require a registered agent with a physical address in the state:
- You can use a registered agent service (costs between $50–$100/year).
- Some services offer New Mexico or Wyoming anonymous LLC formation as packages.
7. Foreign Qualification If you don’t live or operate your business in New Mexico or Wyoming, you may need to register your LLC as a foreign LLC in your home state. This adds costs and paperwork.
For purely online businesses or holding companies, this might not be an issue. But for physical operations, consider where your business activity happens.
8. Use Cases
- Choose New Mexico LLC if:
- You want the cheapest and most private LLC setup.
- You don’t want to file annual reports.
- You’re running a holding company or simple online business.
- Choose Wyoming LLC if:
- You want better asset protection laws.
- You prefer a state with a strong business reputation.
- You’re open to paying a small annual fee for long-term security.
Conclusion: New Mexico LLC vs Wyoming LLC – Final Verdict Choosing between a New Mexico LLC and a Wyoming LLC depends on your specific needs.
- If privacy and low cost are your top priorities, go with New Mexico.
- If asset protection and a business-friendly reputation matter more, Wyoming is worth the extra $60/year.
Both states are excellent for forming anonymous LLCs, especially for remote entrepreneurs, investors, and those seeking discreet business setups.
Helpful Government Resources:
- New Mexico Secretary of State Business Services: https://www.sos.nm.gov/business-services/
- Wyoming Secretary of State Business Division: https://sos.wyo.gov/Business/