Comparison

Wyoming vs Delaware vs New Mexico LLC: 2026 Comparison

Quick answer

For most non-resident founders running a small online business, Wyoming or New Mexico is the better fit. Wyoming costs $100 to form and at least $60 a year. New Mexico costs $50 to form and has no annual report. Delaware costs $110 to form and $400 a year, which pays off mainly when investors or partners want Delaware law.

On this page
  1. Wyoming vs Delaware vs New Mexico at a glance
  2. Formation fees and how you file
  3. Annual fees, taxes and due dates
  4. Three-year official cost, with the arithmetic
  5. Registered agent and privacy
  6. Legal reputation and courts
  7. What the state you pick does not change
  8. Which state should a non-resident choose?
  9. Our recommendation by scenario
  10. Sources
  11. Frequently asked questions

Wyoming vs Delaware vs New Mexico at a glance

New Mexico has the lowest official fees, Wyoming adds instant online formation and a low yearly report, and Delaware costs the most each year but has the best-known business court in the United States. The table compares official state rules only. Service fees, including ours and any commercial registered agent, are left out.

FactorWyomingDelawareNew Mexico
Formation fee$100 (plus a 2.4% card fee online, so $102.40)$110$50
Annual fee or taxAnnual report license tax: the greater of $60 or $0.0002 per dollar of Wyoming assets$400 annual LLC tax ($300 before the 2026 tax year); no annual reportNo annual report fee in the LLC Act
Annual due dateFirst day of the anniversary month of formationOn or before 1 June, for the prior calendar yearNone
If you miss itDelinquent; subject to dissolution if not paid within 60 days$200 penalty plus 1.5% interest per monthNot applicable
Registered agentRequired, physical Wyoming addressRequired, physical Delaware street addressRequired, named in the Articles
Member or manager names on the formation documentNot requiredNot requiredNot required
Online filingYes; active as soon as the online filing is completedYes, through the online Document Filing service, or by mailYes; business filings are online
Expedite$700 next business day, $1,400 same day (rarely needed online)$50 (24 hours), $100 (same day), $500 (2 hours), $1,000 (1 hour)No expedite fee found on the official pages we checked
Business courtChancery Court for business mattersCourt of ChanceryGeneral state courts
Official cost over 3 years (worked below)$280$1,310$50

Want to see Florida, Texas and other states side by side? Use our LLC state fee comparison tool. If you live in a US state, read our best state for an LLC guide first, because your home state is usually the better choice.

Formation fees and how you file

All three states accept online filings, and the formation fees are low: $50 in New Mexico, $100 in Wyoming and $110 in Delaware. The difference is speed and how much you pay for it.

Wyoming. You file Articles of Organization online. The online card processing fee is 2.4% of the filing fee (minimum $1), so the $100 filing costs $102.40. Wyoming's business FAQ says a company filed online is active as soon as the online filing process is completed, while paper filings can take up to 15 business days. Expedited review costs $700 (next business day) or $1,400 (same day), but an online filing rarely needs it.

Delaware. You file a Certificate of Formation through the state's online Document Filing and Certificate Request Service or by mail to Dover, as set out on the Division of Corporations' How to Form a New Business Entity page. Delaware sells speed: the fee schedule lists 24-hour ($50), same-day ($100), 2-hour ($500) and 1-hour ($1,000) service. We did not find a published standard turnaround time.

New Mexico. You file Articles of Organization through the Secretary of State's online portal. The Secretary of State says business filings have moved to an online process. We did not find a published processing time or expedite fee on the official pages we checked, so we do not quote one.

Detailed steps for each state live on our state pages: Wyoming LLC, Delaware LLC and New Mexico LLC.

Annual fees, taxes and due dates

This is where the three states split. New Mexico has no annual report in its LLC Act, Wyoming charges a small annual license tax, and Delaware charges a flat $400 every year whether or not the LLC earns anything.

Wyoming annual report

Every Wyoming LLC files an annual report and pays a license tax of $60 or two-tenths of one mill on the dollar ($0.0002) of assets located and employed in Wyoming, whichever is greater. An LLC with less than $300,000 of Wyoming assets pays $60. The report is due on the first day of the anniversary month of formation, and it can be filed up to 120 days early. If it is not paid within 60 days of the due date, the LLC becomes subject to dissolution. An online payment also carries a processor convenience fee.

Delaware annual LLC tax

Delaware LLCs file no annual report but pay an annual tax of $400, due on or before 1 June for the prior year. The rate rose from $300 under House Bill 400, signed on 21 May 2026, starting with the 2026 tax year. That means the payment due on 1 June 2026 was $300, and the first $400 payment is due on 1 June 2027. Late payment costs a $200 penalty plus 1.5% interest per month on tax and penalty.

Delaware does not prorate. The tax is assessed if the LLC is active at any time between 1 January and 31 December, so an LLC formed on 20 December 2026 owes the full $400 for 2026. If you form late in the year and do not need the company until January, waiting can save a full year of tax.

New Mexico

The fee section of the New Mexico LLC Act lists fees for articles, amendments, name reservations, registered agent changes and certified copies, but no annual report. So a New Mexico LLC has no recurring state filing to make. You still pay a registered agent every year, and the business must register for New Mexico gross receipts tax if it has taxable gross receipts in the state.

For the full list of state due dates and what we file, see our LLC annual report service and the compliance deadline calendar.

Three-year official cost, with the arithmetic

Over three years, the official state cost is $50 in New Mexico, $280 in Wyoming and $1,310 in Delaware. The example assumes an LLC formed in October 2026 and counts every state charge that falls due up to October 2029. It uses official fees only and leaves out registered agent, address and filing service fees.

StateFormationRecurring state charges due in 3 years3-year total
Wyoming$1003 annual reports at $60 (due 1 October 2027, 2028 and 2029): 3 x $60 = $180$100 + $180 = $280
Delaware$1103 annual LLC tax payments at $400 (for 2026, 2027 and 2028, paid by 1 June 2027, 2028 and 2029): 3 x $400 = $1,200$110 + $1,200 = $1,310
New Mexico$50None: $0$50 + $0 = $50

Three notes on the arithmetic:

  • Wyoming adds a $2.40 card fee on the online formation and a processor convenience fee on each online annual report payment. The $60 figure assumes Wyoming assets under $300,000.
  • Delaware's figure assumes formation in 2026. Forming in January 2027 instead would still mean three $400 payments over the following three years, but none for 2026.
  • Expedite fees are optional and left out.

Every state also requires a registered agent with a physical in-state address. A founder living abroad has no such address, so in practice you pay a commercial agent every year in whichever state you pick. That fee is not an official fee, so it is not in the table. Ours is on the pricing page and described on our registered agent service page.

Registered agent and privacy

All three states require a registered agent, and none of them requires member or manager names on the formation document.

Keep in mind that a private public record is not the same as anonymity. The IRS learns who the responsible party is from your EIN application, and banks and payment providers verify every 25% owner. Beneficial ownership (BOI) reports to FinCEN are no longer required for any US-formed LLC; our BOI report guide explains the 2026 rule.

Delaware's courts are its main selling point. The Delaware Court of Chancery describes itself as the nation's preeminent forum for disputes involving the internal affairs of Delaware corporations and business entities, and decades of its decisions give lawyers predictable answers.

Wyoming also has a Chancery Court, which it describes as a specialized court that handles business matters and trust and estate claims. New Mexico disputes go to its general state courts.

For a one-owner LLC with no co-owners and no outside investors, court reputation rarely matters in practice, because there is nobody to sue over the internal affairs of the company. It matters more when you have co-founders with a detailed operating agreement, outside investors, or counterparties whose lawyers ask for Delaware law.

What the state you pick does not change

The formation state does not change your federal tax position, your IRS filing duty or where you owe sales tax.

Which state should a non-resident choose?

Choose New Mexico if cost is the main factor

New Mexico is the cheapest to set up and keep: $50 once, then no annual report. It suits a solo founder with a simple service business. The trade-off is that the state never sends a yearly report reminder, so you must track your registered agent renewal and IRS filings yourself.

Choose Wyoming for low cost with clear yearly upkeep

Wyoming costs a little more ($60 a year minimum) but forms the LLC instantly online, has a specialist business court, and its annual report keeps the public record current. It is a sensible default if you are unsure.

Choose a Delaware LLC if others want Delaware law

Pay Delaware's $400 a year when co-founders, investors or large customers ask for a Delaware entity, or when you expect disputes to need the Court of Chancery. Stripe Atlas, for example, forms only Delaware companies.

Skip the LLC if you plan to raise venture capital

Venture investors usually expect a C corporation, and Stripe notes that institutional investors might be unable to invest in LLCs. Our LLC vs C corp comparison covers the tax and investor side.

Our recommendation by scenario

Your situationOur pickWhy
Freelancer or agency abroad invoicing foreign clientsWyoming or New MexicoLowest official cost; state choice has no effect on federal tax
Ecommerce seller (Shopify, Amazon)WyomingLow cost and clear upkeep; sales tax depends on where customers are anyway
Lowest possible state costNew Mexico$50 over three years in official fees
Two or more co-owners with a detailed operating agreementWyoming or DelawareSpecialist business courts; Delaware if a partner insists
Raising venture capitalDelaware C corpThe structure most investors expect
You live and work in a US stateYour home stateAvoids forming in one state and registering again in another

Ready to form? Our non-resident starter bundle covers the LLC filing in Wyoming, New Mexico or Delaware, the EIN, your first registered agent year, an operating agreement and your first Form 5472. The state fee is charged at cost.

Sources

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

Frequently asked questions

Is a Wyoming LLC better than a Delaware LLC for a non-resident?

For a solo founder with no outside investors, usually yes. Wyoming costs $100 to form and $60 a year at the minimum, against $110 and $400 a year in Delaware, and it forms online instantly. Delaware is worth the extra cost when investors or partners want Delaware law.

Does the state I choose change my federal tax?

No. A single-member LLC owned by a non-US person is treated the same way for federal tax whichever state it is formed in, so it files Form 5472 with a pro forma Form 1120 in any year with reportable transactions, with the same $25,000 penalty. What changes between states is the formation fee, the yearly state charge and the registered agent cost.

Do I have to live in the state where I form my LLC?

No. Wyoming, Delaware and New Mexico do not require members to live in the state. What each state requires is a registered agent with a physical address in the state, which is why founders abroad use a commercial registered agent.

Does the state I pick affect Stripe or Mercury approval?

Their published requirements do not favor one state. Mercury requires a company formed and registered in the United States, and Stripe requires a US business to be registered in the US. Approval depends on their own review of you and your business, and nobody can guarantee it.

Which is the cheapest state for an LLC over three years?

Of these three, New Mexico: $50 in official fees over three years, because its LLC Act has no annual report. Wyoming comes to $280 and Delaware to $1,310 on the same assumptions. Registered agent fees come on top in every state.

Do all three states require a registered agent?

Yes. Wyoming, Delaware and New Mexico each require a registered agent with a physical address in the state. A founder abroad usually pays a commercial agent every year, so compare the agent’s renewal price as well as the state fees.

Written by Muhammad Mustafa

Muhammad Mustafa owns and runs Borderless Filings. He researches and writes the guides on this site from official sources such as the IRS, US state filing offices, Companies House and HMRC. Filings are prepared and submitted by our specialist filing partner. Muhammad is not a lawyer or an accountant, and nothing on this site is legal or tax advice.