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    The Real Cost of Starting a US LLC as a Non-Resident (2026 Breakdown)

    Aug 28, 2026

    Most "how much does it cost" articles quote a single number — usually just the state filing fee — and stop there. That number is real, but it's rarely the number that determines your actual first-year cost. This is a complete breakdown: what's mandatory, what's optional, what recurs annually, and where the real cost differences between states actually show up.

    The Costs That Are Mandatory, Regardless of State

    • State filing fee. Paid once, to form the LLC. This is the number most guides lead with — and it varies more than people expect, from around $50 (New Mexico) to $300 (Texas).
    • Registered agent, first year. Every US state requires an LLC to maintain a registered agent with a physical address in the state of formation. This isn't optional and isn't something you can skip by using your own address if you don't have one in that state — which, as a non-resident, you don't.
    • EIN. The IRS itself doesn't charge for an EIN — it's free directly through the IRS via phone, fax, or mail. Any fee you pay here is for a service handling the application on your behalf, not an IRS charge.

    The Costs That Vary by State

    This is where "how much does an LLC cost" stops having one answer. Using the four states non-resident founders compare most often:

    StateFormation cost (approx.)Annual fee
    Wyoming~$100$60/yr minimum (greater of $60 or 0.02% of Wyoming assets)
    Delaware~$110$300 for tax years through 2025 (last paid June 1, 2026); $400 from tax year 2026 (first due June 1, 2027); no annual report
    Texas~$300$0 below the $2.65M no-tax-due revenue threshold
    New Mexico~$50$0 — no annual report requirement at all

    Already know which country you’re forming from? Browse our step-by-step, country-specific formation guides.

    New Mexico's zero-annual-fee structure and Wyoming's low flat minimum are why they show up disproportionately often in non-resident founders' state choices — the ongoing cost, not just the formation cost, is usually the bigger factor over a multi-year horizon.

    The Costs Most Guides Skip

    • Annual report / renewal filing, where the state requires one (not New Mexico). This is separate from the registered agent renewal and is easy to miss the following year if you're not tracking it.
    • Registered agent renewal, year two onward. The first-year fee is usually bundled into a formation package; the renewal is a separate, recurring line item that continues for as long as the LLC exists.
    • A virtual mailbox or business address service, if you need US mail handling separate from your registered agent (registered agents typically only forward legal correspondence, not general business mail).
    • EIN-related service fees, if you use a service instead of applying directly — optional, but common among founders who want to avoid the phone/fax process themselves.
    • Bank account costs. Opening is generally free on the fintech platforms non-residents actually use (Mercury, Relay, and similar), but confirm this per platform since fee structures do change.
    • Annual compliance filings, most notably Form 5472 + pro forma Form 1120 — required annually for foreign-owned single-member LLCs regardless of income, with no IRS filing fee but real cost if you pay a preparer to handle it (and a $25,000 minimum penalty if it's missed entirely).

    A Realistic First-Year Total

    Putting the pieces together for a Wyoming LLC, a common choice for cost-conscious non-resident founders:

    • State filing fee: ~$100
    • Registered agent (year 1, often bundled with formation): included or ~$100-150 separately
    • EIN: free (IRS) or a service fee if you don't apply yourself
    • Wyoming annual fee (due the following year, not at formation): $60 minimum

    A bare-bones DIY approach — filing directly with the state, applying for the EIN yourself by phone or fax, and using a low-cost registered agent — can land a Wyoming LLC's first year around $150-250 total. A fuller-service formation package that bundles registered agent, EIN handling, and some compliance support typically runs higher, trading a higher upfront cost for less of the process falling on you.

    Year Two and Beyond: What Actually Recurs

    The formation cost is a one-time event. What continues every year:

    • Registered agent renewal
    • The state's annual fee or report, where one applies
    • Form 5472 + pro forma 1120 preparation, if you're not doing it yourself
    • Any ongoing bookkeeping or accounting support you choose to use

    This is the number that matters more than the headline formation cost for anyone planning to run the LLC for more than a year or two — a state with a slightly higher formation fee but zero ongoing annual fee (New Mexico) can be cheaper over three years than a state with a lower formation fee but a meaningful annual tax (Delaware LLCs pay $300 for tax years through 2025, last paid June 1, 2026, and $400 from tax year 2026, first due June 1, 2027).

    What Drives Cost Up (Beyond the Basics)

    • Choosing Delaware for brand recognition alone, without an actual VC-funding reason. Delaware LLCs pay $300 for tax years through 2025 (last paid June 1, 2026) and $400 from tax year 2026 (first due June 1, 2027), which is meaningfully higher than Wyoming's or New Mexico's ongoing cost, and that premium mainly buys investor familiarity — real value if you're raising, unnecessary cost if you're bootstrapped.
    • Missing Form 5472. Covered in more detail in our dedicated guide, but worth repeating here: the $25,000 minimum penalty dwarfs every other cost on this page combined.
    • Paying for services you could do yourself. The EIN application costs nothing directly from the IRS; a paid service is convenience, not a requirement.
    • Multiple failed bank applications. Not a direct fee, but a real cost in time — most fintech platforms don't offer an easy second attempt after a decline, so a rushed first application can mean weeks of delay hunting for an alternative platform.

    Frequently Asked Questions

    What's the actual cheapest state to form an LLC in as a non-resident?

    On formation cost alone, New Mexico (~$50) is typically the lowest. Factoring in that New Mexico also has no annual report requirement, it's usually the cheapest state on a multi-year total-cost basis too — though Wyoming's low flat annual fee makes it a close second with somewhat more brand familiarity.

    Does the IRS charge anything for the EIN?

    No. Applying directly by phone, fax, or mail is free. Any fee associated with getting an EIN is for a service doing the application on your behalf, not an IRS charge.

    Is there a real difference between a "cheap" formation package and a more expensive one?

    Usually yes, but not always in ways that matter for every founder — the difference is typically in what's bundled (registered agent duration, EIN handling, compliance reminders, support) rather than in the state fees themselves, which are fixed regardless of which service you use.

    Are there any hidden fees non-residents specifically should watch for?

    The most common one is assuming the first-year registered agent fee (often bundled into a formation package) is the ongoing rate — the renewal price the following year is sometimes higher than the promotional first-year rate. Confirm the actual year-two price before committing.


    Information reviewed August 2026.


    Still deciding between states? Compare Wyoming, Delaware, Texas, and New Mexico in detail. Ready to see the full process end to end? See our complete non-resident LLC formation guide.

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