New Mexico, Wyoming or Delaware: choosing the right LLC state
Compare annual costs, privacy and member agreements before choosing your LLC state, with banking and payments built around the business.
Forming an LLC gives you a US company. Putting it to work means something more: signing contracts, getting paid, choosing accounts for the currencies you use and knowing who will keep the company in order. Your choice of New Mexico, Wyoming or Delaware should support that business, not end with a filing receipt.
All three states can accommodate an LLC with foreign owners. The useful comparison concerns ongoing state requirements, ownership arrangements and public records, alongside the banking and tax work needed to operate. Here is how to weigh those choices before committing to a state.
New Mexico vs Wyoming vs Delaware: where to start
New Mexico is worth considering for straightforward state administration. Wyoming combines a relatively modest annual state charge with LLC rules worth examining when arranging ownership and assets. Delaware offers extensive contractual flexibility for agreements between members. None belongs exclusively to one type of entrepreneur.
| State | Recurring LLC state requirement | What to assess |
|---|---|---|
| New Mexico | No periodic state Annual Report | Simple registration upkeep and internal arrangements |
| Wyoming | Annual Report; USD 60 minimum | LLC governance and assets located in the state |
| Delaware | USD 400 annual tax; no Annual Report | Member agreements and contractual flexibility |
These are state requirements, not an all-inclusive cost of running the company. Registered Agent service, tax preparation, certificates and banking assistance are separate parts of the budget. Delaware's USD 400 rate applies to the 2026 tax year, payable by June 1, 2027; the payment due in June 2026 covered the previous year.
New Mexico: a straightforward base for international business
A New Mexico LLC does not file a periodic Annual Report with the Secretary of State. That can be a lasting advantage for a remote service business: less recurring corporate paperwork and a simpler state maintenance schedule.
The benefit works best alongside an active Registered Agent, current company details and an Operating Agreement that reflects the business. Ownership, contributions and signing authority need to be clear. With several members, the agreement should also address decision-making, admission of new members and departures.
No Annual Report is not a general state income-tax exemption. Activity and its connection to each jurisdiction need their own assessment. New Mexico's practical strength is lighter registration upkeep, which can fit an international business without making the company any less capable of contracting, holding assets or growing.
Wyoming: LLC governance with predictable annual upkeep
Wyoming requires an Annual Report on the first day of the anniversary month of formation. For a company formed on January 15, the annual deadline is January 1, not January 15. The charge is the greater of USD 60 or 0.02% of assets located and employed in Wyoming. It is not automatically a levy on the company's entire worldwide asset portfolio.
Wyoming law addresses charging orders: a remedy through which a member's creditor may reach certain distributions linked to that membership interest. The interest and the assets owned by the company are different things. When structuring asset ownership, the relevant law, agreements and actual separation between owner and company all matter.
Section 17-29-503(g) makes that remedy exclusive for a member's judgment creditor acting in that capacity, including where the LLC has only one member. The order does not give the creditor management rights or allow foreclosure on the membership interest. That is a specific legal separation between a member's personal debt and control of the company, to assess alongside the law and jurisdiction applicable to the case.
That makes Wyoming worth considering for operating and investment businesses. A useful recommendation explains which provisions serve the owner's needs rather than simply calling it “more protected”. Our Wyoming Annual Report guide covers the calculation and timing in detail.
Delaware: room to develop the agreement between members
Delaware is not reserved for large businesses. Its LLC Act places considerable weight on freedom of contract. An Operating Agreement can set out economic rights, voting, management responsibilities and arrangements for members joining or leaving. That can matter in a joint venture or a business whose owners contribute different amounts of capital and work.
A Delaware LLC does not file an Annual Report. It pays an annual tax, currently USD 400 per tax year, due by June 1 of the following year. Our guide to Delaware LLC annual tax explains the rate and period.
For planned investment rounds, start with the investors' requirements and the appropriate entity type. A Delaware LLC is not a C-Corporation merely because it is registered in Delaware. The state's value should come from the agreement and structure your business needs, not just the familiarity of its name.
Privacy: separate public filings from company records
Formation documents in these states are not a complete public register of every member and ownership percentage. Delaware's basic certificate, for example, requires the LLC name and registered office and agent details. The authorised person signing it does not necessarily own the business.
This creates room for deliberate privacy planning. Before filing, establish who acts as organiser, which address serves each purpose and what information becomes public. Keep ownership and signing authority properly documented for the company, the IRS and institutions that need to verify them.
A Registered Agent receives legal notices. An operating address describes where the business works. Treating those as distinct roles helps the company present accurate information both in public records and during financial onboarding.
Banking and payments should shape the setup
A business may benefit from several accounts: one for USD receipts through ACH, another arrangement for European payments, and separate tools for supplier payments, cards or reserves. State selection should sit alongside those requirements.
Before applying, establish where the owners live, what the company sells, where it operates and how money will move. Providers apply their own eligibility and documentation requirements. Registering in a particular state does not create automatic bank approval.
Exentax develops the banking and payments setup with the LLC itself. We assess suitable combinations, prepare applications and follow up with providers. The right account performs a useful job for your business; collecting account names is not the objective. A clear plan also helps you compare conversion costs and payment routes before moving regular receipts.
Federal tax classification is a separate decision
The IRS distinguishes state-law entity status from federal tax classification. A domestic LLC with one member is generally a disregarded entity for federal income-tax purposes. A domestic LLC with two or more members is generally a partnership, unless a relevant corporate election applies.
The LLC still exists as a legal company. Federal classification determines how its activity is treated for tax purposes; choosing New Mexico instead of Wyoming does not itself change that classification. Owners' tax residence, the location of activity and the nature of income complete the assessment.
For a foreign-owned single-member LLC, reportable transactions with its owner can require Form 5472 with a pro forma Form 1120. A multi-member company needs the treatment appropriate to its members and activity. Those decisions belong in the initial setup, not as an afterthought.
Three examples of how the decision can differ
These are illustrative situations, not reported client results:
- An international consultancy with one owner. Where services are performed outside the US and lighter state administration is a priority, New Mexico may be an efficient starting point. Contracts, payment arrangements and tax treatment then do much of the practical work.
- A business combining operations and investments. Wyoming merits a closer look at ownership rules, governance and asset separation. Whether both activities should sit in one entity is also worth deciding.
- Several founders contributing different resources. Delaware may provide a useful setting for negotiating votes, profit rights, management and exit terms. The agreement matters more than a generic formation package.
If the business has staff, premises or substantial in-person operations in another state, start with that location. Additional registration there, known as foreign qualification, may be necessary. There is no need to force every business into a three-state comparison.
Frequently asked questions about choosing an LLC state
What is the best LLC state for a non-US resident?
The state that fits the business, owners and maintenance needs. New Mexico simplifies periodic registration upkeep; Wyoming and Delaware offer frameworks worth considering for particular ownership arrangements. A complete recommendation includes banking and tax treatment.
Does the state determine how much tax I pay?
Not by itself. It affects certain state requirements, while federal classification, income source and the owner's tax residence need separate analysis. A useful cost comparison distinguishes state fees, taxes and professional service charges.
Can an LLC in any of these states use dollars and euros?
Compatible providers can support receipts and operations in both currencies. Availability depends on the business, its owners and provider terms. Exentax builds the combination around the payments the company needs to receive and make.
Should I move an LLC that already exists?
Not necessarily. First assess what works and what you want to improve. Updating governance, banking or ongoing management may achieve more than a move. A state change should have a defined benefit and a planned transition.
Can I form in one state and operate in another?
Yes, subject to registration and tax requirements where the business operates. Formation and authorisation to conduct business elsewhere are separate matters. Review them before hiring locally or opening premises.
Choose the state as part of a working company
Tell us what you do, where you live, who will own the LLC and which payments or investments it must support. That gives us a basis for a state recommendation, a proposed structure and a defined scope of work.
During the first month with your LLC, we sequence those steps so that company records, accounts and initial receipts are ready in the right order.
Exentax's work does not stop at formation. We coordinate company documents, EIN, banking, payments and ongoing requirements within the agreed service, with a team familiar with your business. Explore how we structure and launch your LLC.