Best state for a non-resident LLC

What matters when you live abroad

For a US resident, the home state usually decides the question. For a non-resident, three things matter instead.

• What the LLC costs to keep each year. Formation is a one-off cost. The yearly state charge and the registered agent are paid for as long as the LLC exists.
• How easy the yearly filings are to keep up with from abroad. A missed state filing is the most common way a foreign-owned LLC is dissolved.
• Whether your business already ties you to a state. Stock, staff or an office in a state normally means registering there anyway.

First: is the choice already made for you?

States require companies to register if they transact business in the state. If you will do any of the following, look first at the state where it happens:

• hold inventory in a warehouse there, including a marketplace fulfillment center you choose,
• employ someone there, or
• rent an office or other property there.

Amazon FBA sellers are a special case. Amazon moves stock between warehouses in many states, and the tax consequences depend on each state's rules. See sales tax for Amazon FBA sellers.

The three usual candidates

All three require a registered agent with a physical address in the state, every year. See what a registered agent is.

Wyoming

Wyoming suits most non-resident sellers and service businesses that are not tied to another state. The yearly cost is low and predictable, and the state has no personal or corporate income tax. The one trap is the due date: the annual report falls on the first day of the month the LLC was formed, so an LLC formed in March files by March 1 each year. Payment more than 60 days late makes the LLC subject to dissolution.

New Mexico

New Mexico has the lowest upkeep, because it has no annual report for LLCs. That is its appeal and also its risk. With nothing to file, it is easy to forget that the registered agent still has to be paid each year, and an LLC that loses its agent falls out of compliance. New Mexico accepts business filings online only. Unlike Wyoming, it does have a state income tax, which applies to income from activity in New Mexico. See Wyoming vs New Mexico LLC.

Delaware

Delaware's reputation comes from its corporate law and specialist business court. That matters to investor-backed corporations. For a small non-resident LLC it mostly means a higher fixed cost: the annual tax is $400 under the state's current form, due June 1 whether or not the LLC traded. Many sources still quote the older $300 figure. See Wyoming vs Delaware LLC.

When Texas or Florida is the better answer

If your business will have a real presence in Texas or Florida, such as a warehouse, staff or an office, forming there can be simpler than forming elsewhere and registering in those states as well. Texas charges $300 to form and no franchise tax for 2026 reports at or below $2.65 million of revenue, but it requires a yearly Public Information Report. Florida charges $125 to form and $138.75 for the annual report, filed between January 1 and May 1.

A note on state income tax

State income tax is rarely the deciding factor for a non-resident. States tax income from activity in the state, not income of companies that are simply registered there. An owner abroad with no US activity usually has no state income to tax whichever state is chosen. An owner with US activity will usually be taxed where that activity happens, whichever state the LLC is formed in.

A simple way to choose

1. Stock, staff or an office in one state?

   Start with that state.

2. Raising investment as a corporation?

   Look at Delaware.

3. Neither, and you want a single, simple yearly filing?

   Wyoming is the usual choice.

4. Neither, and you want no yearly state filing at all?

   New Mexico, as long as you keep paying the registered agent.

Founders can also read the country guides for Pakistan, India, the UAE, the UK, Canada and Nigeria.

This guide is general information. It is not tax or legal advice for your situation.