The principle: you get to choose
An LLC can be formed in any of the 50 states, wherever you live. The choice affects formation fees, annual fees and some filing obligations.
Note: if your company has a physical presence in another state (office, warehouse, employees), that state may require an additional registration, called foreign qualification.
The criteria to compare
For most non-resident entrepreneurs who sell online or offer remote services, four criteria matter most:
- Formation fees, paid once
- Annual fees (annual report, franchise tax)
- What your partners expect (investors, banks, platforms)
- How simple it is to stay in good standing
The most popular states
Wyoming combines moderate fees with an inexpensive annual report. Delaware is the standard for companies planning to raise funds, at the cost of a higher annual tax. New Mexico requires no annual report for LLCs, which keeps recurring costs down.
Our state comparison shows the indicative fees for each; they are checked before every filing.
In practice
There is no single best state. If you are unsure, start from your actual business and your three-year plans, then compare costs over that period rather than formation fees alone.
This article is for information only and is not legal or tax advice. The rules mentioned may have changed since the update date.
