Best State for a US LLC as a Non-Resident (2026): Wyoming vs Delaware vs New Mexico
If you are forming a US LLC from outside the United States, the first real decision is not the company name — it is the state. For the vast majority of non-residents the answer is Wyoming, but Delaware and New Mexico each win for a specific profile. This guide compares all three on the things that actually matter when you live abroad: privacy, annual cost, tax, and — the one most people miss — whether US banks recognize the state during remote KYC.
Why State Choice Is the First Decision
A US LLC is registered in one specific state, and that choice sets your annual fees, your privacy on the public record, and how easily you can open a US business bank account from abroad. Changing state later (a process called domestication) costs extra and means re-doing paperwork, so it pays to get this right the first time. Crucially, you do not have to live in — or even visit — the state you choose. A founder in Dubai, Riyadh or Lagos can own a Wyoming LLC just as easily as someone in New York.
The single most underrated factor is banking recognition. When you apply to Mercury, Wise or a US bank remotely, a compliance team reviews where your LLC is registered. Well-known formation states clear KYC smoothly; obscure ones can trigger extra questions or delays. That one detail is why state choice deserves more thought than most checklists give it.
Wyoming, Delaware and New Mexico — Side by Side
| Factor | Wyoming | Delaware | New Mexico |
|---|---|---|---|
| State annual fee | ~$60/year | ~$300 franchise tax | $0 annual report |
| Privacy | ✅ Strong (no member names) | ⚠️ Moderate | ✅ Strong (no member names) |
| State income tax | None | None on LLC pass-through | None on LLC pass-through |
| Bank/KYC recognition | ✅ Best recognized remotely | ✅ Well recognized | ⚠️ Less recognized by some teams |
| Best for | ~95% of non-residents | Raising US venture capital | Lowest-cost, banking trade-off accepted |
Figures are standard public state fees and may change; tax outcomes depend on your circumstances — consult a qualified tax advisor.
Wyoming — the default for ~95% of non-residents
- •Strong privacy: member and manager names are not in the public state record.
- •Low cost: roughly $60/year in state fees, no state income tax.
- •Best recognized by US bank compliance teams during remote KYC.
Delaware — only if you are raising US venture capital
- •Standard for US VC paperwork and priced equity rounds.
- •~$300 annual franchise tax for LLCs — higher ongoing cost.
- •Overkill for a typical bootstrapped or service business.
New Mexico — cheapest, with a banking trade-off
- •$0 annual report — the lowest recurring state cost of the three.
- •Strong privacy, similar to Wyoming on the public record.
- •Less recognized by some bank KYC teams, which can slow remote onboarding.
Wyoming: The Default for ~95% of Non-Residents
Wyoming wins for almost every remote founder because it stacks the right advantages: member names are kept off the public state record (strong privacy), the recurring state cost is roughly $60/year (see the Wyoming Secretary of State), and there is no state income tax. Most importantly, Wyoming is the formation state US bank compliance teams see most often from legitimate non-resident founders — so it tends to clear remote KYC with the fewest questions. Unless you have a specific reason to pick another state, Wyoming is the safe default.
Delaware: Only If You Are Raising US Venture Capital
Delaware's reputation comes from venture capital, not from being cheap or simple. US VCs and their lawyers are accustomed to Delaware entities, so if you genuinely expect to raise a priced equity round from US investors, Delaware can save friction at the term-sheet stage. The trade-off is cost: LLCs pay an annual franchise tax of around $300, several times Wyoming's fee. For a bootstrapped business, a freelancer, or an e-commerce operator who is not raising US capital, that premium buys nothing useful.
New Mexico: Cheapest — With a Banking Trade-Off
New Mexico is the budget pick: it charges no annual report fee, so the recurring state cost is effectively $0, and it offers strong privacy similar to Wyoming. The catch is recognition. Some US bank and fintech KYC teams see New Mexico LLCs less often, which can mean extra review or a slower remote onboarding. If squeezing out every recurring dollar matters more to you than the smoothest possible banking path, New Mexico is reasonable. For most founders the small Wyoming fee is worth paying to avoid banking friction.
Why Skip Nevada and Florida
Two states that come up a lot are easy to rule out for non-residents. Nevada markets itself on privacy but charges high annual fees (business license plus annual list filings) that make it more expensive than Wyoming for no added benefit to a foreign owner. Florida is popular with US residents who actually live and operate there, but for a non-resident it offers no privacy advantage and no special banking edge — and its public record exposes more ownership detail than Wyoming or New Mexico. Neither beats Wyoming for the remote founder use case.
Decision Table by Founder Profile
| Your profile | Best state |
|---|---|
| Bootstrapped founder selling SaaS / services globally | Wyoming |
| UAE/Gulf founder opening Mercury or Wise remotely | Wyoming |
| Founder raising a priced round from US VCs | Delaware |
| Cost-minimiser comfortable with extra bank review | New Mexico |
| E-commerce / Stripe / Shopify operator | Wyoming |
The Gulf Angle: A UAE Founder Opening Mercury Remotely
Consider the common case: a founder in the UAE wants a US LLC mainly so they can open Mercury or Wise remotely and accept global card payments. Here the state choice is really a banking decision. Wyoming is better recognized than New Mexico by US bank compliance teams, and for a Gulf-based applicant — whose KYC review is already more involved because of the cross-border profile — that recognition reduces the chance of extra questions or a stalled application. New Mexico might save a small annual fee, but if it adds friction at the bank, it is a false economy for this founder. This is exactly why OpenEntity's $499 plan defaults to Wyoming: it is the state that keeps remote banking as smooth as possible for non-resident and Gulf-based clients. Banking approval is always at the provider's discretion, and any tax questions should go to a qualified tax advisor.
The 5-Year Total-Cost Picture
Total cost is formation plus registered agent plus annual fees, not just the headline state fee. With OpenEntity on the Wyoming default, formation is a one-time $499 (state filing, EIN, and the Year-1 registered agent included), and ongoing maintenance is about $209/year from Year 2. Over five years that is roughly $499 up front plus four years of maintenance — a predictable, low total for a fully banked US company. A bare New Mexico filing can look cheaper on paper because of the $0 annual report, but once you add a registered agent and the potential cost of slower banking, the gap narrows. Wyoming's small premium buys the smoothest path. State fees and any taxes owed are separate; confirm your tax position with a qualified tax advisor.
How to File in the Right State From Anywhere
Step 1 — Pick the state that matches your profile
For most non-residents that is Wyoming. Decide before filing — moving an LLC between states later (domestication) is extra cost and paperwork.
Step 2 — Appoint a registered agent in that state
Every US LLC needs an in-state registered agent. OpenEntity includes the Year-1 agent in the $499 formation fee.
Step 3 — File the formation documents
Articles of Organization are filed with the Secretary of State. You do not need to be in the US or hold a US visa to do this.
Step 4 — Get your EIN and open banking
Apply for the IRS EIN via SS-4 (the non-resident path), then open Mercury or Wise remotely. Wyoming's recognition helps here.
A note on tax before you choose
"No state income tax" does not mean "no tax." Your federal US filing obligations with the IRS and any tax owed in your country of residence are separate from the state you pick. Never choose a state for tax reasons without confirming the outcome with a qualified tax advisor.
Best State for a Non-Resident US LLC — FAQ
What is the best state for a US LLC as a non-resident?
For roughly 95% of non-residents, Wyoming is the best state: strong privacy, low annual cost (~$60/year state fee), no state income tax, and the strongest recognition by US bank compliance teams during remote KYC. Delaware only makes sense if you plan to raise US venture capital, and New Mexico suits cost-minimisers who can accept a banking trade-off. For tax specifics, consult a qualified tax advisor.
Wyoming vs Delaware vs New Mexico — which should a non-resident pick?
Wyoming for most remote founders (privacy + bank recognition + low cost). Delaware if you are raising priced equity rounds from US VCs who expect Delaware C-corp/LLC paperwork — but expect a ~$300 annual franchise tax. New Mexico if your only goal is the lowest possible annual cost ($0 annual report), accepting that it is less recognized by some bank KYC teams. A qualified tax advisor can confirm what fits your situation.
Does the LLC state affect opening a Mercury or Wise account?
It can. Remote bank and fintech compliance teams review where the LLC is registered. Wyoming is widely recognized and rarely raises questions during onboarding, which is why it is the default for non-residents opening Mercury or Wise remotely. Lesser-known formation states can trigger extra review. Banking approval is never guaranteed and depends on each provider's own checks.
Do I pay state income tax if my US LLC is in Wyoming?
Wyoming has no state income tax, and New Mexico does not tax a single-member LLC's pass-through income at the entity level in the same way a corporate state would. However, your federal filing obligations (and any tax owed in your country of residence) are separate matters. Always consult a qualified tax advisor before relying on any tax outcome.
How much does a non-resident US LLC cost per year?
It depends on state and registered agent. With OpenEntity, formation is a one-time $499 (filing, EIN and Year-1 registered agent included) and ongoing maintenance is about $209/year from Year 2 on the Wyoming default. Over five years that is roughly $499 + four years of maintenance. State fees and any taxes are separate; confirm tax exposure with a qualified tax advisor.
Not Sure Which State Fits You? Let's Check
OpenEntity forms your US LLC for $499 — filing, EIN and Year-1 registered agent included — and defaults to Wyoming so your remote banking stays smooth. Tell us your situation and we'll confirm the right state before you file.
Disclaimer: OpenEntity is a private business consulting firm and does not provide legal or tax advice. Information in this article is for educational purposes only. Annual fees and franchise taxes are standard public figures that can change. Consult a licensed CPA, attorney, or qualified tax advisor for advice specific to your situation.