US LLC State Guide: Wyoming, Delaware, New Mexico

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Choosing the wrong US state when you form your LLC costs expat freelancers and foreign founders $200 to $400 more every year — and the most popular choice, Delaware, is often the most expensive option for people who will never touch venture capital. For non-US citizens forming a US LLC from abroad, and for US citizen expats running service businesses internationally, the state filing decision is a straightforward cost and privacy calculation that most formation guides get wrong.

This guide covers exactly what each major state charges, when each makes sense, how to get your EIN without a US Social Security number, and which banks accept non-resident LLC owners. The tax mechanics for US expat owners and non-resident foreign owners differ significantly — both are covered below.

Why Non-Residents and Expats Form US LLCs

A US LLC gives you access to the US financial system from anywhere in the world. The practical reasons expats and non-residents form one include: accepting US payment processors (Stripe, PayPal, Square) without friction, invoicing US clients on familiar legal footing, opening a US business bank account, building a credit profile, and accessing US entity-level liability protection for their business assets.

A US LLC is not an offshore tax shelter for US citizens — US citizens are taxed on worldwide income regardless of where the company is formed. But for non-citizen non-residents running a service business with foreign clients, a US LLC that earns only foreign-source income can dramatically simplify banking while generating no additional US tax liability.

State-by-State LLC Cost Comparison

As of July 2026, the four states most commonly used by non-residents and expats are Wyoming, New Mexico, Delaware, and Florida. Here is what each costs to form and maintain annually:

State	Formation Fee	Annual State Fee	Annual Report Required?	Ongoing Annual Cost (est.)
New Mexico	$50	$0	No	$50–$150 (registered agent only)
Wyoming	$100	$60 minimum	Yes (simple fee form)	$160–$260 (state fee + agent)
Florida	$125	$138.75	Yes	$240–$340 (state fee + agent)
Delaware	$90–$200	$300 flat	No (but $300 tax due June 1)	$400–$500 (tax + agent)

Fees confirmed July 2026 against state filing offices. Registered agent estimates ($50–$200/year) cover standard annual service plans from commercial agents. Add $120–$360/year for a US virtual mailbox if you need a real street address for banking.

New Mexico LLC — Zero Annual State Fees

New Mexico is the cheapest US state to maintain an LLC year after year. The formation fee is $50. There is no annual report requirement and no annual state fee for LLCs — the state simply does not collect one. In year two and every year after, you pay only your registered agent fee, which typically runs $50 to $150 with commercial services.

New Mexico also offers unusually strong member privacy. The Articles of Organization do not require you to list member or manager names, which means there is no public record connecting your name to the entity. This makes it popular for founders who prefer to keep their ownership structures private.

Where New Mexico Falls Short

New Mexico has less name recognition internationally than Wyoming or Delaware, which can occasionally matter when signing contracts with US counterparties who are unfamiliar with the state's LLC law. Its case law history for LLC disputes is thinner. And because New Mexico LLCs are relatively new to the popular consciousness, some banks and payment processors occasionally ask questions — though in practice most major fintechs accept them without issue. New Mexico does not have an online filing portal as user-friendly as Wyoming's, and the initial Articles of Organization must be filed by mail or through a third-party service.

Wyoming LLC — Privacy and Proven Asset Protection

Wyoming was the first US state to pass LLC legislation in 1977 and has spent decades building a reputation as the most business-friendly LLC jurisdiction in the country. The formation fee is $100, and the annual report costs a minimum of $60 — calculated as $60 or $0.0002 times the value of assets in Wyoming, whichever is greater. For most service-based freelancers with no Wyoming assets, the minimum $60 applies.

Wyoming's LLC law offers strong charging order protection — meaning creditors of an LLC member generally cannot seize the LLC's assets to satisfy a personal judgment against the member. Member and manager names are not publicly disclosed on the Secretary of State's website, giving Wyoming privacy comparable to New Mexico. Wyoming has no state income tax.

For non-residents paying $60 per year in state fees plus $100–$200 for a registered agent, Wyoming's total ongoing cost runs $160–$260 per year — notably cheaper than Delaware, with better asset protection law and comparable privacy. Wyoming is the most popular choice among US expats who want a clean, low-cost domestic entity.

Delaware LLC — Skip It Unless You're Raising Capital

Delaware LLCs owe the state a flat $300 alternative entity tax every year, due by June 1, regardless of whether the company made any money. There is no annual report filing for LLCs, but the tax must be paid or the LLC risks being voided by the state. Add a registered agent fee of $100–$200 per year, and Delaware costs $400–$500 annually just to exist — two to three times what Wyoming costs.

Delaware's legal advantage is real: the Delaware Court of Chancery has decades of sophisticated business law precedent, and most US venture capital funds require Delaware entities for investments. Delaware C-Corps (not LLCs) are the standard for VC-backed startups. But if you are a solo freelancer, consultant, or small service business with no plans to raise institutional capital, you are paying a $300/year premium for a reputation that offers you no practical benefit.

Getting Your EIN Without a Social Security Number

Every US LLC needs an Employer Identification Number (EIN) from the IRS before it can open a bank account, accept payments, or file tax returns. Non-residents who do not have a Social Security Number or ITIN can still obtain an EIN — you simply write the word "Foreign" on Line 7b of Form SS-4.

There are three methods, ranked by speed:

1. Phone (fastest — EIN same day): Call the IRS International EIN line at 267-941-1099 (Monday–Friday, 6 AM–11 PM Eastern). This is not toll-free; international calling rates apply. The IRS representative will verify your information and give you the EIN on the call.
2. Fax (4–6 business days): Complete Form SS-4 and fax it to (855) 214-2220. The IRS will fax back a confirmation with your EIN number.
3. Mail (4–6 weeks): Submit a completed Form SS-4 by post to the IRS International EIN address in Austin, TX. Use this method only if you have no time pressure.

One critical rule: form the LLC with your state before applying for the EIN. The IRS will match the entity name on Form SS-4 against state records, and any mismatch causes processing delays.

Opening a US Business Checking Account

With a formed LLC and an EIN, you can open a US business checking account online without visiting a branch. The account requirements are the same regardless of which state you used: a certificate of formation, your EIN letter, and valid government-issued ID. For the address requirement, a US virtual mailbox — see our guide to virtual mailboxes for expats — provides a real street address at $10–$30/month and is accepted by most fintech lenders and payment processors.

Specialist fintech accounts designed for internationally-based business owners — including Mercury, Relay, and Bluevine — accept non-resident LLC owners and can be opened entirely online. Most applications are reviewed within 3–5 business days. All require that you have already obtained your EIN; applying before the EIN is issued will result in rejection.

Tax Mechanics: US Expat Owners vs. Non-Resident Foreign Owners

A single-member LLC is a disregarded entity for US tax purposes — the LLC itself owes no federal income tax. Income flows through to the owner's personal return. What that means in practice differs significantly based on your citizenship and residency status.

US Citizen Expats

If you are a US citizen living abroad and operating your LLC from overseas, all LLC income is taxable in the US regardless of which country you earned it in or where your client is based. You can use the Foreign Earned Income Exclusion to shelter up to $126,500 (2024, indexed) from US income tax. However, the FEIE does not exempt you from self-employment tax.

The self-employment tax — covering Social Security and Medicare — is 15.3% on the first $176,100 of net LLC income in 2025, and 2.9% on amounts above that. This is owed even on income fully excluded under the FEIE. See our breakdown of the self-employment tax trap for expat freelancers for planning strategies including Totalization Agreement exemptions and the Solo 401(k) deduction.

Non-Resident Foreign Nationals

A non-US citizen who does not live in the US and owns a single-member LLC is taxed differently. Income from services performed entirely outside the US by a non-resident is generally not effectively connected income (ECI) and is not subject to US tax. If you are based in Colombia, Thailand, or Portugal and all your LLC's services are performed outside the US, that income ordinarily does not generate a US tax liability.

US-source income — for example, if you perform consulting work physically in the US during a trip, or if your LLC earns interest from a US bank account — is taxed. US bank interest as a non-resident is generally subject to 30% withholding (or a lower treaty rate), not graduated tax rates. Consult a tax professional familiar with the IRS rules for nonresident alien income to confirm how your specific income streams are classified.

Total Setup Checklist and First-Year Costs

1. Form the LLC (Wyoming recommended for most expats): $100 state filing fee online, plus $3.75 convenience fee. New Mexico alternative: $50 by mail or third-party service.
2. Appoint a registered agent: Use a commercial registered agent service ($50–$200/year). Required in every state.
3. Get an EIN: Call IRS International line (267-941-1099) for same-day EIN. Free.
4. Get a US virtual mailbox: $10–$30/month for a real street address for banking and correspondence.
5. Open a US business checking account: Apply online at a specialist fintech (Mercury, Relay, or Bluevine) with your LLC docs, EIN, and passport. No branch visit required.
6. Get a US phone number for 2FA: Google Voice (free with Google account for personal use) or a US VOIP service ($2–$10/month).
7. Register for any required state sales/gross receipts tax: New Mexico LLCs earning in-state revenue owe New Mexico Gross Receipts Tax; Wyoming has no state income tax or GRT for most businesses.

Data Notes / Sources Checked

• Wyoming Secretary of State — Business Division Fee Schedule
• Delaware Division of Corporations — LLC/LP/GP Franchise Tax Instructions
• Florida Department of State — LLC Fees
• IRS Form SS-4 Instructions (December 2025) — EIN application for non-residents
• IRS — Self-Employment Tax for Businesses Abroad
• IRS — Taxation of Nonresident Aliens

State fees confirmed July 2026 against official state filing office pages. Annual registered agent rates are commercial estimates and vary by provider.

Which State Should You Choose?

For the typical US expat freelancer or foreign-national digital nomad who wants a clean US business entity for invoicing and banking, the choice is simple: New Mexico if you want the lowest possible annual cost and maximum privacy, Wyoming if you want stronger asset protection law and an entity that banks and counterparties recognize more easily. Delaware belongs on the list only if you are raising institutional capital — for everyone else, you are paying $300 a year for a brand name you do not need.

Once your entity is formed, pair it with a fintech business account, a virtual mailbox for correspondence, and a US phone number for two-factor authentication — and you have a fully functional US business presence you can run from anywhere. See the full US expat banking guide for how to structure the broader stack.