Which State Should You Choose for Your U.S. LLC? Wyoming, Delaware, New Mexico or Florida

As a non-resident, you can form your LLC in any U.S. state. It doesn’t have to be where your clients are. The state you choose affects your yearly costs, your privacy and how investors see you. Here are the four options our clients ask about most.

Wyoming: the best choice for most

Low annual costs (annual report from $60), no state income tax, strong owner privacy and good asset protection. It’s the default recommendation for consultants, freelancers, agencies, online stores and SaaS founders.

Keep in mind: less familiar to venture capital investors.

Delaware: if you plan to raise investment

The standard for startups that want venture capital or angel investors, with a well-known business court and an easy path to becoming a C-Corporation later.

Keep in mind: a $300 annual franchise tax, higher maintenance costs and less privacy than Wyoming.

New Mexico: the lowest ongoing cost

Formation from about $50, no annual report, no state income tax and strong privacy.

Keep in mind: less familiar to some banks and payment processors, and less recognized overall.

Florida: if you have ties to Florida

No state personal income tax, and Miami is a major hub for Latin American business. A good fit if you plan to have a presence, partners or clients in Florida.

Keep in mind: higher yearly cost (annual report around $139, with a steep late fee if you miss the May 1 deadline) and less privacy, since owner and manager details are public.

Quick comparison

	Wyoming	Delaware	New Mexico	Florida
Best for	Most non-residents	Startups raising money	Lowest cost, privacy	Ties to Florida
Annual state cost	From $60	$300	None	About $139
Annual report	Yes	Yes	No	Yes
Privacy	High	Medium	High	Low
Investor-friendly	Medium	High	Low	Medium

One important rule

If you actually run your business from a specific state, for example with an office or employees there, you may also need to register your LLC in that state, whichever state you formed it in. For remote businesses run from Latin America, this usually doesn’t apply.

State fees and rules change. Confirm current costs before forming your LLC.

Need help?

VCG compares the options for your specific business, clients and plans, so you choose once and choose right. If your budget is tight, ask us about working in exchange for equity, services or referrals.

Book a free consultation with Mauricio →

Sources: based on guidance from James Baker, CPA, VCG’s U.S. tax partner. This guide is general information, not legal or tax advice.