How much does a US LLC cost over 24 months? Honest non-resident breakdown

0 to 50 dollars of state fee in New Mexico. Real 24-month cost of a US LLC for non-residents: New Mexico vs Wyoming vs Delaware, Form 5472 risk, FBAR/8938, and what your home regulator (HMRC, IRS, ATO) will ask.

Forming an LLC costs 0 to 50 dollars of state fee in New Mexico, 100 dollars in Wyoming, and 90 dollars in Delaware; with a professional service, the total first-year cost lands between 400 and 1,500 dollars.

Let us start by clearing up something that makes us cringe in the trade: an LLC is not "created". It is formed.

You "create" an Instagram profile or a Netflix account. You "form" a legal entity recognised by a sovereign US state, with tax obligations, a federal taxpayer ID and reporting duties to the IRS. Subtle difference, until HMRC or your home revenue authority pulls the thread.

Now that we have that off our chest, the question that matters: how much does it cost?

Formation costs (one-off)

The opening bill depends on which state you choose:

New Mexico

Wyoming

Delaware

Maintenance costs (annual)

Once formed, your LLC carries recurring obligations that deserve the same attention as formation:

New Mexico: no state Annual Report

Wyoming

Delaware

Which state fits your profile? Honest comparison by use case

The price tags above do not pick the state for you. The right state depends on what you sell, how much you turn over, and whether you plan to raise capital, sell the business, or simply operate quietly. This is the honest read we give every Exentax client torn between New Mexico, Wyoming and Delaware:

The Florida lane has its own dedicated article and shows up only when you have physical presence in Miami or you intend to hire local employees. For 80 % of the non-resident clients we advise, the honest choice falls between New Mexico (cheapest), Wyoming (most balanced) and Delaware (when there is an investment thesis).

The real 24-month cost of your LLC

The number almost nobody answers fully is: how much will you have spent two years from now? An LLC has a spending peak in month 0 (formation, EIN, Operating Agreement, banking), one fixed annual payment in month 12 and another in month 24. Looking only at the first 12 months hides the recurring part; at 24 months the picture is honest.

Scenario A — Freelancer in New Mexico (lean profile)

Month 0: full formation (single bundled fee, all in: filing with the Secretary of State, EIN, Operating Agreement, BOI if applicable, year-1 Registered Agent).
Months 1-12: zero extra state burden (NM does not require an Annual Report). Quiet federal compliance work in the background.
Month 12: annual Exentax maintenance (Form 5472 + 1120 pro-forma, Registered Agent renewal, BOI monitoring, coordination with your home-country tax adviser).
Around month 16: actual filing of the 5472/1120 with the IRS Service Center in Ogden, Utah (April 15 deadline, with Form 7004 extension available to October 15 if needed).
Month 24: second annual maintenance cycle.

True 24-month total: one formation fee + two annual maintenance fees + zero additional state fees. It is the most predictable structure on the market.

Scenario B — Agency in Wyoming (balanced profile)

Month 0: same scope as NM, with the difference that the filing fee and the future Annual Report are budgeted in.
Month 12: in addition to Exentax maintenance (5472 + 1120 + Registered Agent), you pay Wyoming's state Annual Report (state fee per the formula in force).
Month 24: same as month 12, second Annual Report.

True 24-month total: formation + two Exentax maintenance fees + two Annual Reports. Still affordable and buys you Wyoming's strong charging-order protection, which is what you pay extra for vs NM.

Scenario C — SaaS in Delaware (corporate profile)

Month 0: Delaware filing (more expensive at origin), with an Operating Agreement drafted to host future seed-round clauses.
Month 12: on top of the Exentax fee, the Annual Report fee for LLCs (Delaware does not levy franchise tax on LLCs in the corporate sense, but the LLC annual fee is fixed and non-trivial) plus Registered Agent.
Month 24: same as month 12.

True 24-month total: costlier formation + two Annual Report cycles + two Exentax maintenance fees. It is the priciest scenario, justified when you are raising capital or planning to sell the business: you recover the premium the day a VC opens your cap table and does not force you to redomicile.

What does NOT change between the three scenarios

Form 5472 + 1120 pro-forma is filed identically in all three states; the penalty for omission is also identical: USD 25,000 per form per year. And if a notice does land, at Exentax we keep the dossier ready so you reply in hours, not weeks.
The BOI Report is harmonised at the federal level; the state does not matter.
Banking (Mercury, Relay, Wise Business) works the same with all three states.
Your obligation to declare the LLC at residence (UK Self Assessment, Irish revenue, German Finanzamt, Spanish AEAT, etc.) does not change with the state choice: the owner's effective taxation depends on residence, not on Delaware vs NM.

The cost of NOT having an LLC

Here is the figure most people ignore: the cost of not having an LLC when you should.

If you are a UK freelancer turning over GBP 60,000/year billing international clients and your effective rate (income tax + Class 2/4 NIC) lands near 35-40 %, that is GBP 21,000-24,000 in UK tax. With a properly structured LLC and clean residency planning, the federal US side pays 0 % federal tax on those flows; only your residency taxation remains, and it can be lower than self-employed once dividends or sound attribution rules are used.

The delta is real, and the cost of the LLC is recovered in the first month. Read our self-employed Spain vs US LLC tax comparison for fully worked-out numbers (the framework is the same for the UK and Ireland; only the local rate differs).

"But aren't there services that do this for $49?"

Yes there are. They do exactly one mechanical job: they fill in a form and submit it. No tax advice, no Operating Agreement adapted to your case, no post-formation support, no return preparation, nobody to tell you what to do next.

Forming the LLC is the easy step. The hard part — and what makes the difference — is operating it correctly so that your tax structure actually works.

To keep going on this thread, US LLC for digital marketing agencies: structure, billing and scaling and LLC legal security and asset protection: the underrated advantage fill in nuances this guide only touched on.

What Exentax includes (no fine print, no surprise add-ons)

Here is where we close the loop and pull together what other websites scatter across five marketing bullets: exactly what we do, what the annual fee covers, what you save, and what we will not surprise-bill you for later. One single block, everything in its place, closed-quote in writing before we start.

At formation (month 0):

Legal filing in the optimal state for your profile (New Mexico, Wyoming, Delaware or Florida) with Articles of Organization filed with the Secretary of State and the state filing fee paid by us.
Federal EIN obtained via SS-4 with the IRS — no queues, no need to explain to Washington what a non-resident is.
Operating Agreement tailored to your real case, not a template downloaded from a blog.
BOI Report filed with FinCEN where applicable under current rules (post-March 2025 IFR, most non-resident-owned US LLCs are no longer in scope; we monitor on your behalf).
Year-1 Registered Agent included.
Banking onboarding with Mercury, Relay, Wise Business or Slash, matched to your activity and inbound payment profile.
Initial tax advisory so you understand the full structure before you operate.
ITIN filed via W-7 whenever your bank or payment processor requires it.

In the annual maintenance (every year from year 1 onwards):

Preparation and filing of Form 5472 + pro-forma Form 1120 with the IRS Service Center in Ogden, Utah, with Form 7004 extension when convenient.
Registered Agent renewal.
State Annual Report in Wyoming, Delaware or Florida when applicable.
BOI Report monitoring (updates if there are ownership, address or structure changes).
FBAR if applicable (aggregate balances > USD 10,000 across foreign accounts of the holder).
Coordination with your home-country tax adviser so the local return reflects the attribution or dividend correctly.
Continuous written support all year, with a named owner for your file.

What you save vs DIY: a misfiled 5472 is USD 25,000 per form per year (IRC §6038A); a late BOI, when it applies, is USD 591/day cumulative; a rejected ITIN leaves you without operational banking for months. The Exentax value is not just running the paperwork; it is getting it right first time and having an accountable adviser when the IRS or your home-country authority asks.

Zero surprises, zero "ah, that wasn't included", zero invoice shocks. Book a free consultation and we will give you the exact numbers for your specific case.

Legal and regulatory references

This article relies on rules currently in force. We cite the main sources so you can verify them yourself:

United States. Treas. Reg. §301.7701-3 (entity classification / check-the-box); IRC §882 (tax on foreign persons' effectively connected income); IRC §871 (FDAP and withholding for non-residents); IRC §6038A and Treas. Reg. §1.6038A-2 (Form 5472 for 25 % foreign-owned and foreign-owned disregarded entities); IRC §7701(b) (tax residence, substantial presence test); 31 U.S.C. §5336 (Corporate Transparency Act, BOI Report with FinCEN).
United Kingdom. Income Tax (Earnings and Pensions) Act 2003 and Income Tax (Trading and Other Income) Act 2005 for income classification; HMRC Statement of Practice 1/86 and the longstanding HMRC view treating a US LLC as opaque in most cases; Anson v HMRC [2015] UKSC 44 for the narrow exception where transparent treatment may apply on the facts; TIOPA 2010, Part 9A (Controlled Foreign Companies regime) when the LLC is controlled by a UK-resident company; SA106 (foreign income) on the personal return.
United States persons (dual-status / US residents holding the LLC). IRS Form 8938 (FATCA, IRC §6038D) for foreign financial assets above the threshold; FinCEN 114 (FBAR) for non-US accounts above USD 10,000 aggregate; Form 8865 if the LLC sits within a foreign partnership chain.
Ireland and EU. Council Directive 2011/16, as amended by DAC6 (cross-border arrangements), DAC7 (Directive (EU) 2021/514, digital platforms) and DAC8 (crypto-assets); Council Directive (EU) 2016/1164 (ATAD: CFC, exit tax, hybrid mismatches); the OECD Common Reporting Standard (CRS).
US-UK / US-Ireland tax framework. The UK-US Double Taxation Convention (in force since 31 March 2003) and the Ireland-US Convention; OECD Model Tax Convention, Art. 5 (permanent establishment) and the Action 5 BEPS report (substance).
International framework. OECD Model Convention commentary; FATF Recommendation 24 (beneficial ownership).

Before going further, put numbers on your case: the Exentax calculator compares, in under 2 minutes, your current tax bill with what you would carry running a US LLC properly declared in your country of residence.

> Start today, 100% online

How any of these rules actually apply to your case depends on your tax residence, what your LLC does and the documentation you keep. This content is informational and does not replace personalised professional advice.

Banking and tax facts worth clarifying

Fintech and CRS information evolves; here is the current state:

Notes by provider

Mercury operates with several federally chartered partner banks and FDIC coverage via sweep network: mainly Choice Financial Group and Evolve Bank & Trust, with Column N.A. still in some legacy accounts. Mercury is not itself a bank; it is a fintech platform backed by those partner banks. If Mercury closes an account, the balance is typically returned by paper check mailed to the account holder's registered address, which can be a serious operational problem for non-residents; keep a secondary account (Relay, Wise Business, etc.) as contingency.
Wise ships two clearly different products: Wise Personal and Wise Business. For an LLC you must open Wise Business, not the personal account. Important CRS nuance: a Wise Business held by a US LLC sits outside CRS because the account holder is a US entity and the US is not a CRS participant; the USD side operates via Wise US Inc. (FATCA perimeter, not CRS). In contrast, a Wise Personal opened by an individual tax-resident in Spain or another CRS jurisdiction does trigger CRS reporting via Wise Europe SA (Belgium) on that individual. Opening Wise for your LLC does not bring you into CRS through the LLC; a separate Wise Personal in your own name as a CRS-resident individual does report.
Wallester (Estonia) is a European financial entity with an EMI/issuing-bank licence. Its European IBAN accounts are within the Common Reporting Standard (CRS) and therefore trigger automatic reporting to the tax administration of the holder's country of residence.
Payoneer operates through European entities (Payoneer Europe Ltd, Ireland) that are also in scope for CRS for clients resident in participating jurisdictions.
Revolut Business: when paired with a US LLC, it operates under Revolut Technologies Inc. with Lead Bank as its US banking partner. The account delivered is a US account (routing + account number); no European IBAN is issued to a US LLC. The European IBANs (Lithuanian, Belgian) belong to Revolut Bank UAB and are issued to European clients of the group. If you are offered a European IBAN tied to your LLC, confirm exactly which legal entity holds that account and which regime it reports under.
Zero tax: no LLC structure delivers "zero tax" if you live in a country with CFC/tax transparency or income attribution rules. What you achieve is no double taxation and correct reporting at residence, not elimination.

On the same topic

Legal & procedural facts

FinCEN and IRS reporting requirements moved recently; the current state is:

Key points

BOI / Corporate Transparency Act: your LLC is NOT required to file (a competitive advantage). After FinCEN's March 2025 interim final rule, the BOI Report obligation was narrowed to "foreign reporting companies" (entities formed OUTSIDE the US and registered to do business in a state). A US-formed LLC owned by a non-resident does NOT file the BOI Report: one fewer filing on your calendar, less paperwork, and a cleaner structure than ever. If your LLC was formed before March 2025 and you already filed BOI, keep the acknowledgement. The regulatory status can change again: we monitor FinCEN.gov on every filing and, if the obligation comes back, we handle it at no extra cost. Current status verifiable at fincen.gov/boi.
Form 5472 + pro-forma 1120. For a Single-Member LLC owned by a non-resident, the final regulations of Treas. Reg. §1.6038A-1 (in force since 2017) treat the LLC as a corporation for 5472 purposes. Procedure: pro-forma Form 1120 (header only: name, address, EIN, tax year) with Form 5472 attached. It is filed by certified mail or fax to the IRS Service Center in Ogden, Utah, not e-filed via standard MeF. Due date: April 15; extension via Form 7004 to October 15. Penalty: USD 25,000 per form per year, plus USD 25,000 per additional 30 days of non-filing after IRS notice.
Substantive Form 1120. Only applies if the LLC has filed a check-the-box election to C-Corp (Form 8832): it then pays 21 % federal corporate tax and files a substantive 1120. A standard disregarded LLC does not file a substantive 1120 and does not pay federal corporate tax.
EIN and notice. Without an EIN you cannot file 5472 or BOI. The IRS does not warn before imposing penalties; you find out when an EIN is flagged or a later filing is rejected. Relax: at Exentax this is what we do every week, we close it before the letter ever lands in your inbox.

Frequently asked questions

What exactly is included in the service? Full setup: state + EIN + Operating Agreement + initial BOI + banking onboarding + ITIN when it applies. Closed quote in writing before we start, with no surprises at the end.

And what does the annual maintenance cover? Registered Agent, state Annual Report, 5472 + pro-forma 1120 filed with the IRS, BOI monitoring and coordination with your residence-country tax advisor. Full annual calendar covered.

Does OECD Pillar Two raise LLC cost? No for single-member LLCs with normal turnover. GloBE only applies to groups with consolidated revenue ≥ EUR 750M.

How long does end-to-end formation actually take? The Secretary of State filing in New Mexico or Wyoming is settled in 24-72 business hours; Delaware in 24-48 hours if you pay for expedited filing. The EIN takes 7-15 business days by fax to the IRS if you have an ITIN, and 4-8 weeks if you only provide a passport. The bank account at Mercury or Relay is usually opened in 5-10 business days after the EIN. Realistic timeline: your LLC fully operational with a live bank account in 3-5 weeks, not in 24 hours as low-cost services pretend.

Can I move from Wyoming to New Mexico (or the other way around) if I change my mind? Yes, via domestication or conversion: the LLC migrates state while keeping the EIN, the banking history and the contracts. It is not trivial (filings in both states, Operating Agreement update and IRS notification), but it is doable. It is much cleaner than dissolving and re-forming, which breaks the history.

Do I need an ITIN to form the LLC, or only for some things? To form, no. For the EIN, not strictly (it can be requested by fax with passport if the responsible party box is filled correctly). To open Mercury or Wise Business, usually no. For Stripe, Slash or any gateway that asks for the responsible party's W-9, yes. We file the ITIN when a payment gateway blocks you, not "just in case" upfront.

What if I miss the April 15 deadline for the 5472? If you submit Form 7004 before April 15 you get an automatic extension to October 15 with no penalty. If April 15 passes without an extension, the penalty kicks in: USD 25,000 per form per year, plus USD 25,000 per additional 30 days if the IRS notices and you still do not file. It is the most expensive and most predictable penalty on the federal calendar — which is why the extension is automatic in the Exentax service.

Does the LLC trigger filings at home (UK, Ireland, EU)? Yes: as a tax resident abroad you tax the LLC's attributed or distributed income. Check whether your jurisdiction treats the LLC as opaque (typical UK treatment per HMRC; Anson is the narrow exception) or transparent, whether you fall in CFC scope, and whether SA106 (UK), Form 11 (Ireland) or your local equivalent applies. We coordinate that side with your residence adviser so both ends line up.

The real cost of forming an LLC, the Exentax way

What most pages skip is the gap between formation and the actual yearly cost - registered agent, state maintenance, BOI, 5472, banking and home-country compliance. At Exentax we quote both numbers from day one.

One-off formation cost: Articles of Organization + EIN + Operating Agreement + initial BOI; closed range in writing before we start.
Recurring yearly cost: registered agent, state annual report, 5472 + pro-forma 1120, banking maintenance and residency reporting.
Avoided costs: USD 25,000 penalty for a missed 5472, BOI fines for late updates and bank fees from documentary inconsistency.

To see your exact figure with no surprises, run the Exentax calculator or book thirty minutes: we end the call with a closed quote and a calendar.

_More on this topic: difference between LLC, Corporation, S-Corp and C-Corp._

Want to apply this protocol to your case? Book a session with the Exentax team and we review your LLC with real numbers in thirty minutes, no strings attached.

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If you want to see the full process in detail, check our services page with everything we cover.

Or call us directly at +34 614 916 910 if you'd rather talk.

For state-specific details, see our Wyoming LLC service page with closed costs and timelines.

If your priority is the ITIN, see Get your ITIN with Exentax and we'll handle it in parallel.

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