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    Business Formation

    Choosing the Best State for Your LLC

    6 min read
    Updated Jan 28, 2025
    Compliance Reviewed

    Easybrise Team

    Formation Specialist

    Choosing the right state for your LLC is one of the most important decisions you'll make. This guide compares popular states like Wyoming, Delaware, and New Mexico to provide general information that founders can use when evaluating their own business needs.

    Easybrise provides administrative filing support and general educational information. We do not provide legal, tax, or financial advice. State selection decisions should be made by the business owner in consultation with licensed professionals when necessary.

    Popular States for International Founders

    While you can form an LLC in any US state, certain states are particularly popular with international founders due to their business-friendly laws, privacy protections, and low fees. The three most common choices are Wyoming, Delaware, and New Mexico.

    StateFormation FeeAnnual FeePrivacyBest For
    Wyoming$104$60/yearExcellentPrivacy-focused founders, asset protection
    Delaware$143Delaware LLCs do not file an annual report. The flat annual tax is $300 for tax years through 2025 (last paid June 1, 2026) and $400 from tax year 2026 (first due June 1, 2027). Late payment results in a $200 penalty plus interest and loss of good standing.GoodVenture-backed startups, future fundraising
    New Mexico$52$0/yearGoodBudget-conscious, minimal reporting

    General Observation: Many international founders choose Wyoming due to its privacy and cost structure. The appropriate state depends on your business model and should be evaluated carefully.

    Why Wyoming is Popular

    • No state income tax
    • Strong privacy protections (no public owner disclosure)
    • Low annual fees ($60/year)
    • No franchise tax
    • Asset protection statutes
    • Fast formation processing

    Common Mistakes to Avoid

    • Choosing a state only based on lowest formation fees
    • Not considering annual maintenance costs
    • Ignoring state franchise tax requirements
    • Not understanding foreign qualification requirements

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