If you live outside the United States and want to sell to US customers or work with US clients, forming a US LLC is one of the easiest ways to enter the market.
Very quickly, you hit the big question:
“What is the best US state for non-resident LLC?”
Google gives you a mix of opinions. Some people say Delaware, others say Wyoming, and a few talk about New Mexico or Nevada. The truth is: several states can work, but each comes with trade-offs in cost, privacy, and ongoing compliance.
This guide compares the most common options international founders look at, and then helps you decide which one is actually right for your situation.
What “Non-Resident” Means in This Context
In this article, non-resident means:
- You are not a US citizen, and
- You do not live in the US (no US residency),
but you want to:
- Run an online business serving US or global customers
- Use US platforms such as Stripe, PayPal, Amazon, marketplaces
- Keep funds and contracts inside a US company structure
US law allows foreign individuals to own LLCs. You don’t need to move to the US to form one. That’s why choosing the best US state for non-resident LLC is more about strategy than permission.
How to Judge the Best US State for Non-Resident LLC
Instead of looking for a single “magic” state, evaluate each option on a few practical criteria:
- Formation cost – How much does it cost to register the LLC?
- Annual cost and reports – What does it take to keep the company active each year?
- Privacy – Are member names easily visible in public state records?
- Reputation – How familiar are banks and payment platforms with LLCs from that state?
- Remote-friendliness – Can you manage filings and compliance from outside the US?
Once you use these criteria, three names usually stay on the shortlist when people talk about the best US state for non-resident LLC: Wyoming, Delaware, and New Mexico.
Wyoming: Simple, Private, and Remote-Friendly
For many international founders running online businesses, Wyoming often becomes the most practical choice.
Key advantages:
- Low cost:
Formation and annual fees are on the lower side compared with many other states.
How much does it cost to start an LLC? - Straightforward maintenance:
A simple annual report, no complicated franchise tax system for standard LLCs. - Strong privacy:
You can keep member names off certain public records, which many non-residents value.
How many members should an LLC have? - Remote-friendly:
Formation, registered agent services, and annual filings can all be handled without visiting the US.
If your goal is to build an online-first business, keep admin simple, and stay lean, Wyoming often fits that “best US state for non-resident LLC” profile very well.
Thinking about a Wyoming LLC but still at the idea stage?
Before you choose the best US state for non-resident LLC, start with a name that works.
It all starts with a Name!
Enter your preferred LLC name, and our expert team will check its availability with the state.
Delaware: Strong for Investor-Focused Startups
Delaware is famous in the corporate world. Many large US companies and venture-backed startups are incorporated there.
Delaware may be the best US state for non-resident LLC if:
- You plan to raise money from US investors or venture capital firms, and
- You are comfortable with higher annual costs and a franchise tax.
Pros:
- Very mature legal system and business law framework
- Familiar to investors and corporate lawyers
- Easy to convert a Delaware LLC into a Delaware C-Corporation late.
Cons:
- Franchise tax and annual report add to yearly cost
- Slightly more complex than “set-and-forget” states like Wyoming or New Mexico
If your roadmap genuinely includes institutional funding and a C-Corp later, Delaware is worth serious consideration when deciding the best US state for non-resident LLC.
New Mexico: Low Cost and Minimal Reporting
New Mexico doesn’t appear in every discussion, but it is quietly attractive for some non-resident founders.
Why some choose New Mexico:
- No annual report for LLCs (at the time of writing) – which reduces ongoing tasks
- Low state fees – both formation and maintenance are budget-friendly
- Good privacy – member details can be kept relatively discreet
The trade-off is that New Mexico is less well-known globally compared with Delaware and Wyoming. Many non-residents still lean towards those two because banks, platforms, and advisors are more used to seeing them.
If ultra-low cost and minimal ongoing reporting are your top priorities, New Mexico can be a contender in your search for the best US state for non-resident LLC.
Quick Comparison Table: Wyoming vs Delaware vs New Mexico
Criteria | Wyoming | Delaware | New Mexico |
Typical use case | Online business, e-commerce, freelancers | Startups expecting investors / VC | Simple holding / online business |
Formation & annual cost | Low | Medium to high (incl. franchise tax) | Low |
Annual report requirement | Yes, simple | Yes, with franchise tax | None for LLCs (at time of writing) |
Privacy | Strong member privacy options | Moderate | Good privacy |
Reputation | Well-known for LLCs | Gold standard for investors & law firms | Less known, still acceptable |
Fit for non-resident owner | Excellent, very remote-friendly | Good, but more complex and costly | Good, especially for low-budget setups |
A Reality Check: Where You Actually Operate Still Matters
Choosing the best US state for non-resident LLC is not just about paperwork.
What are the documents during LLC fromation?
If you eventually:
- Hire staff in a specific US state
- Lease an office or warehouse
- Store inventory in a fulfilment centre tied clearly to one state
You may need to register your LLC to do business in that state as well, even if it was originally formed somewhere else.
For fully remote online businesses with no physical US presence, you have far more flexibility to choose freely between Wyoming, Delaware, and New Mexico.
So, Which State Should You Choose?
Here’s a practical way to answer the “best US state for non-resident LLC” question:
You’re an online founder, freelancer, consultant, or e-commerce seller, based outside the US, and want simple, private, and affordable:
→ Wyoming will often be the best fit.
You’re building a startup with a clear plan to raise serious funding from US investors and possibly convert to a C-Corp:
→ Delaware is likely more aligned with that path.
You primarily care about low state fees and minimal reporting, and don’t mind using a less “famous” state:
→ New Mexico can be a workable option.
There’s no one-size-fits-all answer, but for a large number of non-resident online founders, Wyoming tends to offer the best balance.
Not sure how this translates into actual forms and filings from abroad?
BizFyle helps non-resident founders compare options, then handles the paperwork to form a US LLC—so you don’t have to figure out the system alone.
FAQs:
FAQs: Best US State for Non-Resident LLC
What is the best US state for non-resident LLC?
There isn’t one universal answer, but for many online international founders, a simple, privacy-friendly state like Wyoming is often the most practical choice.
Can I form a US LLC if I don’t live in the US?
Yes. Foreign individuals can own US LLCs. You choose a state, use a registered agent address there, and handle filings remotely
Do I need to visit the US to form an LLC?
No. Most non-residents set up their LLC entirely online through a formation service and registered agent.
Can I open an office or hire in another state?
Yes. If you have a physical presence, you may need to register to do business in that state, even if your LLC was formed elsewhere.
Why do so many people talk about Wyoming and Delaware?
Wyoming is known for low costs and privacy. Delaware is known for investor-friendly corporate law. Both are widely used and understood by professionals and platforms.
Can I change states later if I pick the wrong one?
You can move or “domesticate” an LLC into another state in many cases, but it costs time and money. Better to think through the best US state for non-resident LLC before forming.
How BizFyle Helps Non-Resident Founders Decide and Set Up
BizFyle is designed for founders who are outside the US but want a clean, usable US company.
We help you:
- Clarify which state actually fits your plan—whether that’s simple online business or investor-backed startup
- Form your LLC in that state using a trusted registered agent
- Obtain your EIN and get a bank-ready document pack
How to get an EIN for your LLC? - Understand the basic ongoing compliance so your LLC doesn’t quietly fall out of good standing
So instead of guessing the best US state for non-resident LLC based on random blog posts, you get a guided, structured setup.
Final Thoughts
Choosing where to base your US LLC is a strategic decision. It affects your costs, your privacy, how easy banking will be, and how outside partners view your company.
Take a moment to define your real goals—simple online business, investor-backed startup, or low-cost holding structure—and then pick the state that matches that reality.
Ready to set up your non-resident US LLC the right way?
BizFyle helps you choose the right state, form your LLC, get your EIN, and become bank-ready—without needing to be in the US.
