Best States to Form an LLC in 2026
For most non-US founders running an online business, Wyoming is the best all-round state to form an LLC in 2026: a $100 filing fee, a $60 minimum yearly fee and no requirement to list owners publicly. Delaware makes sense when investors or partners expect it, and New Mexico is the cheapest to keep, with no annual report at all. If you will have staff, an office or inventory in a particular state, that state usually wins instead.
Key takeaways
- Wyoming balances low cost, privacy and simple upkeep, which is why it is the default choice for many founders abroad.
- Delaware's annual LLC tax rises from $300 to $400 starting with the 2026 tax year, making it pricier to maintain.
- New Mexico has a $50 filing fee and no LLC annual report, but fewer banks and partners recognize it.
- If your business physically operates in a state, you will likely have to register there anyway, so forming elsewhere may double your fees.
- For a foreign-owned LLC with no US operations, federal filings such as Form 5472 matter far more than the choice of state.
2026 state costs at a glance
These are state government fees only. Registered agent, formation service and optional expedite fees come on top.
| State | Formation fee | Yearly state cost | Owners listed publicly at formation? |
|---|---|---|---|
| Wyoming | $100 | $60 minimum annual report license tax | No |
| Delaware | $110 | $400 annual LLC tax from the 2026 tax year ($300 before) | No |
| New Mexico | $50 | No annual report | No |
| Florida | $125 | $138.75 annual report | Managers or authorized persons usually appear |
| Texas | $300 | No franchise tax due at or below $2.65 million revenue (2026 reports), but a yearly information report | Managers or members appear on the report |
| Nevada | $425 including initial list and business license | $350 annual list and business license | Managers or members appear on the annual list |
| California | $70 | $800 annual LLC tax, plus a biennial Statement of Information | Managers or members appear |
Our Wyoming vs Delaware vs New Mexico article goes deeper on the three states most founders shortlist.
How to choose: start with where you operate
The first question is not "which state is cheapest?" It is "will my business have a physical presence in any US state?" An office, employees, a warehouse or inventory in a state usually means you are doing business there. A Wyoming LLC with a warehouse in Texas generally has to register in Texas as a foreign LLC, pay Texas fees and file Texas reports. At that point, forming directly in Texas can be simpler.
If your business is run entirely from outside the US, selling software, services or digital products online, you have a free choice. That is the situation most of our clients are in, and it is where Wyoming, Delaware and New Mexico stand out.
Wyoming: the default for online businesses
Wyoming charges $100 to form an LLC and an annual report license tax of $60, or two-tenths of a mill on each dollar of assets located in Wyoming if that is higher. For a company with no Wyoming property, that means $60 a year. The annual report is due on the first day of your formation anniversary month.
Wyoming does not require member names in the Articles of Organization, and the state has no personal or corporate income tax. Banks and payment providers are familiar with Wyoming LLCs owned from abroad. See the Wyoming LLC page for details.
Delaware: when investors or partners expect it
Delaware's Court of Chancery and its body of business case law are the reasons large companies and venture investors favor it. For an LLC, the practical costs are a $110 formation fee and a flat annual LLC tax due June 1, with no annual report. Under House Bill 400 that tax is $400 from the 2026 tax year, so the June 1, 2027 payment is $400.
If you plan to raise venture capital, note that most investors want a Delaware C-Corp, not an LLC. For a founder who simply wants a reputable US LLC, Delaware works but costs more each year than Wyoming. See the Delaware LLC page.
New Mexico: lowest upkeep
New Mexico charges $50 to form an LLC and requires no annual report from LLCs. Owners are not listed in the articles. For a founder testing an idea on a tight budget, it is hard to beat on cost.
The trade-off is familiarity. Some banks and partners ask more questions about New Mexico LLCs simply because they see fewer of them. You still need a registered agent in the state every year. See the New Mexico LLC page.
Florida, Texas, Nevada and California
Florida
A sensible pick if you or a co-founder will spend time in Florida or sell into Florida. There is no personal state income tax. The $138.75 annual report is due by May 1, and Florida charges a $400 late fee after that with no waiver.
Texas
The $300 formation fee is on the high side, but small LLCs at or below the $2.65 million revenue threshold for 2026 reports owe no franchise tax. They still file an information report by May 15 every year. Good for founders with Texas operations.
Nevada
Nevada has no state corporate or personal income tax but is expensive to form and maintain because of its business license and annual list. Wyoming usually offers similar benefits for less.
California
Only form in California if your business operates there. The $800 annual LLC tax applies from the first year, since the temporary first-year exemption ended with LLCs formed in 2023.
Costs people forget when comparing states
The formation fee is the smallest number in the decision. Over three years, the recurring costs matter much more.
- Registered agent. You pay for a registered agent every year in your formation state, and again in any state where you register as a foreign LLC.
- Annual state fee or tax. Over three years, Wyoming's minimum adds up to $180, while Delaware at the new $400 rate adds up to $1,200 and California's $800 tax to $2,400.
- Late fees. Some states are strict. Florida's $400 late fee alone is almost three times its annual report fee.
- Foreign registration. If you later hire in or move to another state, you pay that state's registration and yearly fees on top of your home state's.
- Publication rules. A few states, such as New York, require newly formed LLCs to publish a notice in local newspapers, which can cost far more than the filing fee.
Add these up for your first three years before deciding. The cheapest state to form in is not always the cheapest state to own a company in.
What does not change with the state
Whichever state you choose, a foreign-owned single-member LLC generally files Form 5472 with a pro forma Form 1120 each year, and the penalty for missing it is $25,000. You also need an EIN, a registered agent and a bank account. Since FinCEN's 2025 and 2026 rules, US-formed LLCs do not file BOI reports, in any state.
This is general information, not tax or legal advice. A CPA or attorney should confirm the right state for your plans, especially if you will have US staff, property or customers in a specific state.
A simple decision guide
- Online business, run from abroad, no investors planned: Wyoming.
- Tight budget, comfortable with fewer bank options: New Mexico.
- Partners or clients asking for Delaware, or planning a later conversion: Delaware.
- Raising venture capital soon: a Delaware C-Corp rather than an LLC.
- Office, staff or inventory in one state: that state.
Formation fee versus yearly cost
A cheap formation fee can hide a higher yearly cost. The chart puts the one-time state filing fee next to the yearly state fee for four states founders often compare. These are government fees only.
| State | Filing fee | Yearly fee |
|---|---|---|
| New Mexico | $50 | $0 |
| Wyoming | $100 | $60 |
| Florida | $125 | $138.75 |
| Texas | $300 | $0 |
Frequently asked questions
Is Wyoming really better than Delaware for a small LLC?
For most small online businesses owned from abroad, yes, mainly on yearly cost: $60 in Wyoming against $400 in Delaware from the 2026 tax year. Delaware's legal advantages matter most for larger companies with investors and complex agreements.
Does the state I choose affect my US federal tax?
No. Federal tax treatment depends on your LLC's classification and whether it has US-source or effectively connected income, not on the formation state. State taxes can differ if you have activity in a state.
Can I form in one state and move later?
Yes. Many states allow domestication or conversion, where the LLC moves its home state without being dissolved. It involves filings in both states and state fees, so it is easier to pick the right state at the start.
Which states let me keep my name off the public record?
Wyoming, New Mexico and Delaware do not require member names in the formation document. Your registered agent's details appear instead. Your identity is still known to your agent, bank and the IRS.
How long does formation take in these states?
It varies by state and time of year. Wyoming and Delaware standard filings are often approved within a few business days to a week, while states such as California or Texas can take longer. Paid expedite options exist in many states.
Form your LLC in the right state
Once you have picked a state, our LLC Formation service files your articles, appoints a registered agent and helps you apply for your EIN. See the service page for what is included and current pricing.
