Best State for an LLC: Home State vs Wyoming and Others

The short answer

There is no single best state for every LLC. There is a best state for your situation, and it usually comes down to one question: where will the business actually operate?

• You live and work in a US state: form the LLC in that state.
• You live outside the US and have no US office or staff: choose Wyoming, New Mexico or Delaware. Our Wyoming vs Delaware vs New Mexico comparison helps you pick between them.
• You plan to raise venture capital: investors usually expect a Delaware C corporation rather than an LLC. See LLC vs C corp.

The rest of this page explains why, and compares official fees in 10 states people often ask about.

Best state to form an LLC if you live in the US: your home state

If you live and run the business in one state, forming the LLC anywhere else usually costs more, not less. The SBA explains that a business active in more than one state might need to form in one state and file for foreign qualification in others. Your home state will expect the LLC to register there as a foreign LLC, so you pay the formation state's fees, the home state's registration fee, and both states' yearly charges, and you need a registered agent in each.

Example: a California resident forming in Wyoming

California's Franchise Tax Board says every LLC doing business or organized in California must pay an annual tax of $800. So a Wyoming LLC run from California still pays California's $800, plus the Wyoming charges.

Example: a Texas resident forming in Delaware

A Texas LLC costs $300 to form. A Delaware LLC run from Texas costs $110 in Delaware plus $750 to register as a foreign LLC in Texas, then Delaware's $400 annual tax on top of the Texas franchise tax reports that the LLC files either way. Forming "out of state" here adds $560 at the start and $400 a year.

Whether your activity counts as doing business in a state, and so needs registration, depends on the facts. If you are unsure, ask a lawyer or accountant in your state before you form elsewhere.

Best state for an LLC for non-residents

If you live outside the US and have no US office, staff or warehouse, no state is your home state, so you can choose on cost and convenience. Most founders abroad pick one of three:

• Wyoming: $100 to form, active as soon as the online filing is completed, and at least $60 a year. A sensible default.
• New Mexico: $50 to form and no annual report for LLCs. The lowest ongoing state cost.
• Delaware: $110 to form and $400 a year. Worth it when partners or investors want Delaware law.

We do not repeat the full comparison here; the Wyoming vs Delaware vs New Mexico LLC page covers fees, privacy, courts and a three-year cost for each. Whichever you choose, the federal rules are the same: a single-member LLC owned by a non-US person files Form 5472 with a pro forma Form 1120. The full setup is in our US LLC for non-residents guide.

LLC fees in 10 notable states

The table shows the official state fee to form a domestic LLC, the recurring state cost for a typical small LLC, and the fee to register an LLC from another state as a foreign LLC. It leaves out registered agent and service fees.

Notes on the table:

• Nevada: the Secretary of State's fee pages did not load for us, so the Nevada figures come from the Nevada Revised Statutes (NRS 86.561, 86.263 and 76.130). A late annual list adds a $75 penalty.
• New York: the publication rule requires notice in two newspapers for six consecutive weeks, within 120 days of formation. Newspaper charges are set by the papers and are not in the table.
• Montana: the waiver is what the Secretary of State's fee schedule shows today. Fee waivers can end, so check before you rely on it.
• Texas: the information report has no fee, but a late report costs $50 even when no tax is due.

For all 50 states and DC in one place, use our LLC state fee comparison tool, or open a state from the US LLC states hub.

Cheapest state to form an LLC

Of the 10 states above, Montana has the lowest formation fee at $35, and New Mexico is next at $50 with no annual report at all. Over several years, these two stay the cheapest of the group: New Mexico because it has no annual report, and Montana as long as the current annual report waiver lasts and you file by 15 April.

The cheapest state on paper is not always the cheapest for you. If you live in California, a New Mexico LLC still owes California's $800 a year once it does business there, and you pay a second registered agent. The formation fee is also small next to what you pay every year, so compare recurring costs, not only the first bill.

What about Nevada, South Dakota and Montana?

These three come up often in "best state" lists. On official fees alone:

• Nevada is the most expensive state in the table to keep, at $350 a year for the annual list and state business license, and Wise does not onboard Nevada businesses.
• South Dakota costs $150 to form and $55 a year online, and charges $750 to register an out-of-state LLC.
• Montana has the lowest formation fee in the table, at $35.

For a founder abroad, none of them offers much that Wyoming or New Mexico does not already offer at similar or lower cost.

Factors that matter more than the filing fee

State fees are only part of the cost of an LLC, and often not the biggest part.

• Where you operate: the state where you live, keep an office or hire staff may require registration whatever state you form in.
• Yearly obligations: an annual report you forget can cost more than any fee difference. Florida adds a $400 late fee after 1 May, and Delaware charges a $200 penalty plus interest on late tax.
• Registered agent: every state requires one with a physical address in the state. If you do not live there, you pay a commercial agent every year. See our registered agent service.
• Privacy: Wyoming, Delaware and New Mexico do not ask for member names on the formation document; Texas lists managers or members.
• Investors: if you plan to raise money, the entity type matters more than the state; see LLC vs C corp.
• Federal tax: the state you pick does not change your federal tax treatment or IRS filings.

How to decide in four steps

1. Ask where the business will operate. If that is one US state, start with that state.
2. If you have no US base, shortlist Wyoming, New Mexico and Delaware and use the three-way comparison to choose.
3. Check the providers you need. Bank and payment providers have their own rules, such as Wise and Nevada.
4. Compare the yearly cost, including the registered agent, not just the formation fee.

Then follow our how to create an LLC guide, or let us handle it. Our LLC formation package works in any state and includes the state filing, a registered agent, a US address with mail forwarding and the EIN letter, with the state fee charged at cost.

Sources

• SBA: Register your business
• Wyoming Secretary of State: Business Division fee schedule
• New Mexico Statutes: NMSA 53-19-63, LLC Act fees
• Delaware Division of Corporations: Fee schedule (revised 1 August 2026)
• Delaware Division of Corporations: LLC, LP and GP annual tax instructions
• Nevada Revised Statutes: NRS 86.561, fees
• Nevada Legislature: NRS Chapter 86, limited-liability companies
• Nevada Legislature: NRS Chapter 76, state business license
• Florida Division of Corporations: LLC fees
• Florida Division of Corporations: Annual report
• Texas Secretary of State: Form 806 fee schedule
• Texas Comptroller: Franchise tax
• California Secretary of State: Domestic LLC forms and fees
• California Secretary of State: Foreign LLC forms and fees
• California Secretary of State: LLC Statement of Information
• California Franchise Tax Board: Limited liability company
• New York Department of State: Fee schedules
• New York Department of State: Articles of Organization for a domestic LLC
• Montana Secretary of State: Business fees
• South Dakota Secretary of State: Filing fees
• Wise: Verify your US business

Fees, deadlines and rules on this page were last checked on 27 September 2026.