Top States to Form an LLC in the USA for International Entrepreneurs
Starting a business in the U.S. can be a big move — you’re stepping into one of the largest markets anywhere, with no shortage of investors and a legal system that, for the most part, plays fair.
If you’re living outside the States, an LLC (that’s short for Limited Liability Company) is often the easiest way to get started. It’s flexible, relatively low on red tape, and suits everything from one-person ventures to growing teams.
The tricky bit? Every state has its own set of rules. Taxes, setup fees, privacy laws, even the kind of legal protection you get — all of that changes depending on where you register. Pick the right state and you can save a lot of money and headaches. Pick the wrong one… not so much.
In this guide, we’ll go over the five states that tend to work best for non-U.S. entrepreneurs, break down the pros and cons, and share a few tips from people who’ve actually done it.
Why State Choice Matters for International Entrepreneurs
When you form an LLC in the U.S., you need to choose a “home state.” Even if you’re not physically present in the country, that state will define:
- Your legal protections (how well your personal assets are shielded from lawsuits).
- Your annual costs (state fees, franchise taxes, compliance).
- Your privacy (whether your name appears in public records).
- Your tax obligations (some states have zero state income tax, others don’t).
📌 Tip: If you’re not planning to open a physical office in the U.S., you generally want a state that has low fees, no state income tax, strong privacy laws, and a simple online registration process.
Best State to Form an LLC for Non-Residents in 2025
The five best states for non-residents to form an LLC are Wyoming, Delaware, Nevada, New Mexico, and Texas. Wyoming stands out for its no state income tax, low annual fees, and strong privacy protections. Delaware is ideal for startups and investors due to its reputable business laws and Court of Chancery. Nevada also offers no state income tax and solid privacy benefits. New Mexico is favored for anonymous LLC formation with minimal maintenance costs, while Texas provides a large market, no state income tax, and a strong economy for business growth.
1. Delaware – The Corporate Law Powerhouse
Why so many entrepreneurs choose it
Delaware has a long-standing reputation for being “the” place to register a company in the U.S. In fact, over half of Fortune 500 companies call it home on paper. The big reason is the state’s Court of Chancery — a specialized court that deals only with business disputes. It is known for moving quickly and delivering consistent, fair rulings, which gives business owners some peace of mind.
Notable perks:
- No state income tax if your company earns money outside Delaware.
- Strong legal protections and a court system that’s very predictable for corporate matters.
- Owners’ names can be kept off public records (only your registered agent’s info is visible).
- Widely recognized by banks, investors, and payment processors.
Costs & compliance:
- Filing fee: ~$110.
- Annual franchise tax: $300 (flat fee for LLCs).
- Registered agent: ~$100/year (required for non-residents).
Best for:
- Entrepreneurs seeking venture capital or investors.
- Startups that might one day become corporations.
💡 Pro Tip: If your main goal is prestige and investor confidence, Delaware is unbeatable. But if you’re running a small online business with no U.S. office, the $300 franchise tax might not be worth it.
2. Wyoming – The Privacy Champion
Why it’s becoming more popular than Delaware
Wyoming is a favorite among small business owners and online entrepreneurs. It offers unmatched privacy—members’ names don’t appear in public records. It also has no state income tax and some of the lowest annual fees in the country.
Key advantages:
- No state income tax.
- Annual report fee is just $60.
- Strong asset protection through “charging order protection.”
- Easy to form and manage online.
Costs & compliance:
- Filing fee: ~$100.
- Annual fee: $60.
- Registered agent: ~$50–$100/year.
Best for:
- Entrepreneurs who value low costs and high privacy.
- E-commerce owners and freelancers.
💡 Pro Tip: If you don’t need Delaware’s legal prestige, Wyoming can save you hundreds in annual fees while still offering great protection.
3. New Mexico – The Ultra-Low-Maintenance Choice
What makes it stand out
New Mexico is about as hands-off as it gets when it comes to running an LLC. There are no annual reports to file and no yearly fees to pay — once you’ve registered, you’re basically set unless you decide to change something big about your company. Another bonus? Privacy. The state does not list owners names in the public records, which appeals to entrepreneurs who prefer to stay under the radar.
Key advantages:
- One-time filing fee (~$50).
- No annual reports or fees.
- Privacy-friendly.
Costs & compliance:
- Filing fee: $50.
- Annual cost: $0.
- Registered agent: ~$50–$100/year.
Best for:
- Entrepreneurs who want minimal ongoing maintenance.
- Small-scale businesses or holding companies.
💡 Pro Tip: Because it’s less famous than Delaware or Wyoming, some investors and payment processors might be less familiar with New Mexico LLCs—so check with your payment provider before forming.
4. Nevada – The Tax-Free & Business-Friendly State
Why it’s attractive
Nevada offers zero corporate income tax, zero personal income tax, and strong privacy protections. It’s also known for its business-friendly climate.
Key advantages:
- No corporate or personal income tax.
- No franchise tax.
- Strong privacy laws.
Costs & compliance:
- Filing fee: ~$425.
- Annual renewal: ~$350.
- Registered agent: ~$100/year.
Best for:
- Entrepreneurs who value tax freedom and are willing to pay higher setup costs.
- Businesses with U.S.-based operations.
💡 Pro Tip: Nevada’s costs are among the highest, so it’s best for entrepreneurs who plan to actively operate in the U.S., not just hold an online presence.
5. Texas – The Big Market Advantage
Why it’s appealing
Texas has no state income tax and is home to a massive economy. While not as famous as Delaware or Wyoming for non-resident LLCs, it’s a great choice if you’ll have a physical presence or customers in the state.
Key advantages:
- No state income tax.
- Large local market and business infrastructure.
- Business-friendly regulations.
Costs & compliance:
- Filing fee: ~$300.
- Annual franchise tax: $0 if revenue is under ~$1.23 million.
Best for:
- Entrepreneurs who will base operations or hire staff in the U.S.
- Businesses targeting the U.S. market heavily.
💡 Pro Tip: If you’re fully remote and not serving Texas-based customers, another state like Wyoming may be more cost-effective.
Detailed State-by-State Comparison Chart
| State | Filing Fee | Annual Fee | State Income Tax | Privacy Score (1-5) | Avg. Formation Time | Notes |
| Delaware | $110 | $300 | No (out-of-state) | 4 | 1–3 days | Best for investor-focused startups |
| Wyoming | $100 | $60 | No | 5 | 1–2 days | Strong asset protection & privacy |
| New Mexico | $50 | $0 | No | 4 | 2–3 days | No annual reports required |
| Nevada | $425 | $350 | No | 5 | 1–3 days | Higher costs but tax-free |
| Texas | $300 | $0 (<$1.23M revenue) | No | 3 | 3–5 days | Large market presence advantage |
Key Considerations Before Choosing a State
- Do you need a physical office?
If yes, form the LLC in that state. Otherwise, choose a business-friendly one like Wyoming or Delaware. - Think about taxes
Even if a state has no income tax, you may still owe U.S. federal tax or taxes in your home country. - Privacy vs. Prestige
- Wyoming & New Mexico: More privacy.
- Delaware: More prestige.
- Annual Costs
If you want minimal maintenance, New Mexico wins. If you don’t mind a small fee, Wyoming is a close second.
Step-by-Step: How International Entrepreneurs Can Form an LLC
- Pick Your State
- Hire a Registered Agent (U.S. Small Business Administration Guide)
- File the Articles of Organization
- Get an EIN (IRS – Apply for an EIN)
- Open a U.S. Business Bank Account
- Stay Compliant (U.S. State Government Websites)
Real-World Examples
- E-commerce Store Owner from India – Chose Wyoming for its low fees and privacy. Handles U.S. sales through Stripe and Amazon without needing a U.S. address.
- Startup Founder from Germany – Picked Delaware to appeal to U.S. investors, later converted the LLC to a C-Corp when raising funding.
- Consultant from Australia – Formed a New Mexico LLC as a holding company for U.S. clients, avoiding annual filings entirely.
FAQs
1. Can a foreigner own a U.S. LLC?
Yes, you can. The U.S. doesn’t require you to be a citizen or even live there to own one. I’ve seen founders in Europe, Asia, and South America register LLCs without ever setting foot in the country — they just run things online.
2. Do I need a U.S. address to start an LLC?
Not your own, but the state you choose will want a “registered agent” with a local address. That’s usually a service you pay for — it’s pretty standard and inexpensive.
3. Will I have to pay taxes in the U.S.?
It depends on what you’re doing. If your income is tied to U.S. trade or there’s no tax treaty with your country, you might. But if your business is fully overseas, the rules can be different. This is where a tax professional is worth every dollar.
4. Can I open a U.S. bank account from abroad?
It’s possible, though traditional banks often want you in person. Many non-residents use platforms like Mercury, Relay, or Wise Business to skip the flight — it’s all done online.
5. Which state is the cheapest for non-residents in the USA?
New Mexico is about as low-cost as it gets, with no annual fee at all. Wyoming is another solid option at $60 a year, and it’s well-known for being business-friendly.
Final Thoughts
For international entrepreneurs forming a U.S. LLC can be a game-changing move. If you want prestige and investor trust, Delaware is your best bet. If you value privacy and low costs, Wyoming and New Mexico are excellent. Nevada is a great tax-free but higher-cost option, while Texas is perfect for those planning a strong U.S. market presence.
Choosing the right state is about balancing cost, privacy, legal protection, and business goals—and the good news is, with the right planning, you can start operating in the U.S. market without even setting foot in the country.
