Best State to Form an LLC as a Non-Resident (Wyoming vs Delaware vs Florida)
If you live abroad, the usual advice — "form in your home state" — doesn't apply, because you don't have one. That single fact changes the whole decision. Here's an honest comparison of the three states non-residents ask about most, and why the right answer is usually simpler than the internet suggests.
Why "your home state" doesn't exist for you
For a US-based founder, the default is easy: form your LLC where you live and operate, because that's where you'll owe filings and taxes anyway. A non-resident has no US home state and, in the common e-commerce case, no physical US operations either. That removes the usual tiebreaker and, helpfully, removes a lot of the mythology too. When no state is your "home," you are free to choose on the things that actually matter to a remote owner: cost and simplicity. The famous "best state to incorporate" debates are mostly written for venture-backed startups and US operators, not for a foreign seller who needs a clean, cheap, low-maintenance entity.
Wyoming: the low-cost option
Wyoming is a common choice for remote non-resident founders because it is inexpensive and relatively light on upkeep. As of 2026, the filing fee to form is about $100, and the annual report license tax starts at $60 for a small entity. Wyoming does not impose an individual or corporate state income tax, but that does not remove federal tax or filing obligations or taxes created by activity in another state. For a single-member LLC with no US office, payroll, inventory, or other state-specific operations, Wyoming can be a practical candidate. Read the sourced Wyoming LLC guide for non-residents for its advantages, limits, and current filing rules.
Delaware: better only for a specific plan
Delaware has enormous brand recognition, and that recognition leads many founders to assume it's the "serious" choice. For many non-resident e-commerce sellers, it is not the best fit. As of 2026, Delaware's LLC formation fee is around $110, and it charges an annual $400 tax on LLCs. Delaware earns its reputation in a specific context: companies that plan to raise venture capital, take on sophisticated investors, or convert to a C-corporation. Investors and their lawyers know Delaware corporate law, and that familiarity can matter when negotiating a priced round. If that is your path, the premium may be justified. If it is not, the additional annual cost may not buy a practical benefit. The Delaware LLC guide for non-residents covers the advantages and drawbacks, while our LLC vs C-corp guide separates the entity decision from the state decision.
Florida: the operate-here case
Florida enters the conversation for a different reason than Wyoming or Delaware. It isn't a "form here from anywhere for tax reasons" state — it's the right answer when Florida is where you actually have a connection: a US base, a team, inventory, or an intention to spend meaningful time there. Forming where you genuinely operate keeps things honest and avoids having to register your out-of-state LLC to do business in Florida anyway. As a Miami-based firm, we see plenty of founders for whom Florida is the correct choice because it reflects reality — but that's the test. Form in Florida because you have a real presence there, not as a generic default. If that describes your plan, use our sourced guide to opening a Florida LLC as a non-resident.
The comparison, plainly
Set side by side, using current state charges as of 20 August 2026:
| State | Formation filing | Recurring state requirement | Often fits | Main tradeoff |
|---|---|---|---|---|
| Wyoming | $100 | Annual report license tax; $60 minimum | Remote business without a stronger operating-state tie | Privacy and asset-protection slogans are not universal guarantees |
| Delaware | About $110 | $400 annual LLC tax; no annual report | Venture or sophisticated-investor path | Higher recurring cost may add little for a simple owner-operated business |
| Florida | $125 | $138.75 annual report; $400 late fee after May 1 | Real Florida office, team, inventory, or operating plan | Public filing and a costly missed annual-report deadline |
Notice what's not on this list: any promise that one state hides your income, exempts you from federal filing, or changes what you owe the IRS. It doesn't. State choice affects state-level cost and paperwork; it does not change your federal obligations as a foreign owner.
What state choice doesn't change
This is the part the "best state" content usually skips. Whichever state you pick, the company generally needs an EIN and a registered agent in its state of formation. Whether a foreign-owned single-member LLC must file federal Form 5472 with a pro-forma 1120 depends on its status and reportable related-party transactions; a quiet year can still include owner contributions, distributions, or formation transactions. State upkeep also varies: some states require an annual report, while Delaware LLCs pay an annual tax without filing an annual report. The cheapest state is not a shortcut around federal analysis or state good-standing requirements.
Sales tax is another place the state myth misleads. Your formation state doesn't decide your sales-tax exposure — that turns on where you have nexus, such as inventory stored in Amazon's warehouses. And for marketplace sales, this matters less than it used to: under marketplace-facilitator laws, Amazon now collects and remits sales tax in every state that charges it, so the marketplace handles that layer for you. Forming in "no-sales-tax" Wyoming neither creates nor removes any of this; it's a separate question from where the entity lives. If you sell off-marketplace too, read our plain-English take on sales tax versus income tax.
One more practical point: picking wrong isn't a disaster, but fixing it isn't free. Moving an LLC to another state later — or registering an out-of-state LLC to do business where you actually operate — means more filings and more fees. It's cheaper to choose deliberately once than to redo it, which is another argument for the boring, low-cost default rather than a state chosen on reputation.
How we help you choose
The state is a small decision that people overthink and platforms oversell. We match it to your real plan — Wyoming when low state maintenance genuinely fits, Delaware when its governance or financing ecosystem has a purpose, and Florida when you have a real presence — then connect the choice to the EIN, registered agent, records, and required federal filing analysis. See our US company formation service for non-residents for the transaction itself. It is part of our US market-entry work and e-commerce practice, and it pairs with our look at formation platforms versus a CPA firm. If you're deciding where to form, talk to us first.