Want to set up a US LLC in the United States as a non-resident? Then you'll want to know which American states are the best for foreign owners — and why the answer isn't the same for everyone.
The good news for non-US residents is that you have the freedom to choose any of the 50 states to register your LLC, unlike US residents who are generally expected to register in their home state. This is a genuine advantage — it means you can select the state that offers the best combination of low costs, privacy, and legal protections for your specific situation.
Since you're not yet sure which state suits your business best, we will be evaluating each state on the factors that matter most: taxes, annual fees, privacy, payment processor acceptance, and legal protections.
A US LLC gives your business a strong international reputation and direct access to the US market.
Because an LLC is a US company, you'll have unrestricted access to US business services: Stripe, PayPal, Mercury, Relay, and most major banking institutions.
As a non-resident single-member LLC owner operating outside the US, you will generally owe no US federal income tax on your profits. For more on the tax logic, see our complete guide to US LLC taxation for non-residents.
There are three factors to consider when determining the right State in which to form your US LLC.
Filing fees are the one-time cost to register your LLC with the state's Secretary of State. These range from $50 (New Mexico) to over $800 (Massachusetts). Some states like New York add a publication requirement — you must publish a notice in local newspapers for six consecutive weeks — pushing the total first-year cost well above $1,000. Wyoming, Delaware, New Mexico, and Florida all avoid this requirement.
Annual fees are the ongoing cost of keeping your LLC in good standing. Most states require an Annual Report or Franchise tax. Skip it and your LLC can be administratively dissolved. These fees vary considerably: Wyoming charges $60/year, Florida charges $138.75/year, and New Mexico charges nothing at all.
Privacy protections vary significantly between states. Some states don't require member or manager names to appear in public filings, making it difficult for third parties to trace ownership. However, it's worth noting that legal processes — court orders, IRS reporting, and your registered agent's records — can reveal ownership regardless of state-level privacy protections. Privacy at the state level reduces casual exposure, not legal discovery.
Wyoming is the state that invented the LLC structure in 1977, and it has spent the decades since refining the legal protections that come with it. For most non-resident founders of online businesses, it remains our top recommendation.
Costs:
Privacy: Members and managers of a Wyoming LLC are not required to appear in Wyoming's public state records. Your registered agent holds ownership information privately and is not required to make it publicly searchable.
Charging Order Protection — Wyoming's Strongest Advantage
This is the feature most guides skip. Under Wyoming Statute §17-29-503, a charging order — the legal mechanism a creditor uses to claim your LLC interest — is the exclusive remedy available to judgment creditors. Crucially, this protection applies to single-member LLCs as well, which is rare. In most other states, courts have allowed creditors to bypass the charging order entirely when there is only one member. Wyoming does not. This makes Wyoming one of the most creditor-resistant LLC jurisdictions in the US — a meaningful protection if your business ever faces a lawsuit or debt dispute.
DAO LLCs: Wyoming was the first state to legally recognise Decentralised Autonomous Organisations (DAOs) as LLCs under Wyo. Stat. §17-31-101 (2021). If your business operates in the blockchain or crypto space, Wyoming is the only US state with a legal framework purpose-built for this structure.
Best for: Location-independent online businesses, freelancers, agencies, e-commerce sellers, and any non-resident who wants strong legal protection at a low annual cost.
Delaware has been the corporate domicile of choice for US venture-backed companies for decades. More than 65% of Fortune 500 companies are incorporated in Delaware — not because it is cheap, but because its legal infrastructure is built for business.
Costs:
A quick clarification worth making: Delaware LLCs pay a flat $300 annual tax — not the complex franchise tax that Delaware corporations pay (which is calculated on share structure and can run into thousands of dollars). If you form an LLC in Delaware, your annual obligation is straightforward: $300, due June 1.
Legal Advantages: Delaware's Court of Chancery is a specialised business court where disputes are heard by judges with deep corporate law expertise — not juries. This is why investors prefer Delaware-incorporated companies: the legal outcomes are more predictable.
Privacy: Member and manager names are not required in the Certificate of Formation and do not appear in Delaware's public registry.
One important note: If your goal is to raise venture capital or angel investment, Delaware is typically required — but investors will usually expect a Delaware C-Corporation, not an LLC. LLCs can be converted to C-Corps later if needed. Read our LLC vs C-Corp comparison before deciding.
Best for: Tech startups and founders who plan to raise institutional investment in the US.
New Mexico does not get as much press as Wyoming or Delaware, but it has one of the most genuinely founder-friendly LLC frameworks in the US — particularly for non-residents who want to keep ongoing costs as low as possible.
Costs:
Privacy: Member and manager names are not required in New Mexico's public LLC filings, giving it privacy comparable to Wyoming and Delaware.
Best for: Founders who want the lowest possible first-year and ongoing costs, and who are operating online businesses with no New Mexico nexus.
Florida does not offer the same privacy or tax advantages as Wyoming, but it is a strong choice for non-residents who plan to have a physical presence in the US — whether that means a Florida address, a warehouse, staff, or regular travel to the state.
Costs:
Privacy: Florida requires member and manager names on public filings, making it the least private option of the states covered here. If privacy matters to your business, Wyoming or New Mexico are better choices.
Why choose Florida: Florida has a growing entrepreneurial ecosystem with a strong startup community, access to Latin American markets, and a large base of business service providers. If you plan to hire local staff, open a co-working space, or sell to Florida-based customers, registering in Florida avoids the need to foreign-qualify your LLC (registering a Wyoming LLC to do business in Florida, which adds another filing and fee).
Best for: Non-residents planning a physical US presence, particularly in Florida; businesses targeting the US Southeast or Latin American markets.
Nevada is often marketed alongside Wyoming as a top privacy state for LLCs, but this is largely a myth for solo founders. While passive investors can remain anonymous, Nevada legally requires the names and addresses of all Managers or Managing Members to be disclosed on public filings. Furthermore, its cost structure is significantly higher than Wyoming's.
Costs:
For comparison, Wyoming costs $100 to form and $60/year to maintain — while offering true default anonymity and stronger charging order protection. Unless you have a specific reason to be in Nevada (existing business relationships, a Nevada physical nexus, or familiarity with Nevada law), Wyoming is a better value for most non-residents.
Best for: Founders with an existing Nevada business connection, or those who specifically want Nevada's legal environment and have a multi-member structure where passive owners require privacy.
Rather than hedging with "it depends on your situation," here is a direct framework:
Choose Wyoming if: You run an online business (freelance, agency, SaaS, e-commerce, consulting) with no US physical presence, you want strong legal protection at a low annual cost, and privacy matters to you. This covers the majority of StartFleet customers.
Choose Delaware if: You are building a venture-backed startup and plan to raise capital from US angel investors or VCs. But note: they will most likely want a Delaware C-Corporation, not an LLC.
Choose New Mexico if: You want the absolute lowest formation and maintenance cost, you have no US physical presence, and you're comfortable with a slightly less-known state name on your company registration.
Choose Florida if: You plan to have a physical US presence in Florida, or your business has significant connections to the Florida market or Latin America.
Choose Nevada if: You have an existing business reason to be in Nevada. Otherwise, Wyoming offers equivalent privacy and stronger legal protections for a lower annual cost.
One rule applies regardless of state: You are required to file Form 5472 and a Pro Forma Form 1120 with the IRS every single year, regardless of which state your LLC is registered in. Many founders mistakenly believe that if their LLC made no money or had "zero transactions," they do not have to file. This is false. The IRS considers the money spent simply to form the LLC as a reportable transaction. This is an information return, not a tax return, but the penalty for missing it or filing it incorrectly is $25,000. See our annual compliance guide for a full breakdown.
No. Non-US residents can form an LLC in any of the 50 states without living there, visiting there, or having any connection to that state. You are required to maintain a registered agent with a physical address in your chosen state. All of Startfleet plans include registered agent by default.
Yes, through a process called redomestication (or domestication). However, it involves filing paperwork in both the old and new states, paying fees in both, and potentially a gap in your registered agent coverage. It is significantly easier to choose the right state at the beginning.
No. All major US online banks used by non-residents — Mercury, Relay, Wise Business — accept LLCs from Wyoming, Delaware, New Mexico, Florida, and Nevada. Your industry and business model have far more impact on bank account approval than your state of formation.
No. US federal tax treatment for a foreign-owned single-member LLC — specifically the disregarded entity status and non-resident alien tax rules — is determined by the IRS at the federal level and is identical regardless of which state you form in. State-level income taxes only apply if your business has nexus (a taxable presence) in that state, which most non-resident online businesses do not.
For most non-resident online business owners: Wyoming. Delaware's advantages (Court of Chancery, investor familiarity) are primarily relevant to US-based startups seeking venture capital. Wyoming's advantages — lower annual cost, stronger charging order protection, and comparable privacy — are more relevant to the typical non-resident founder running an online business from abroad.
New Mexico has the lowest formation fee at $50 and no annual report or annual fee requirement. Wyoming is a close second at $100 formation and $60/year — and offers stronger legal protections that justify the slightly higher cost for most founders.
StartFleet helps you with your US company formation. Apart from helping you to register a US company, we offer a lot more:
Formation plans start at $349 total (including registered agent + bank account opening support). View full pricing.
Recommended Readings:
Kathleen Schweitzer is an international taxation expert, providing strategic counsel to businesses with complex compliance, tax and financial issues in an effort to help them grow their business globally. She often gives lecture on U.S. tax developments, transfer pricing, taxes on the sale of goods and services, U.S. tax policy development, taxation of internet commerce and multi-jurisdictional global tax planning. Kathleen enjoys reading, photography, cooking and spending time with her husband and eleven-year-old daughter.
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