Delaware vs Wyoming vs New Mexico LLC for Non-Residents
Delaware, Wyoming, and New Mexico are three states non-resident founders often compare, and they sit at very different price points. Among these three, New Mexico has the lowest recurring state charge, Wyoming remains a low-cost candidate, and Delaware's higher annual tax may make sense only for a specific legal or investor plan. Here is the 2026 comparison.
Why these three states, and why cost decides it
A US-based founder usually forms an LLC in the state where they live and operate. A non-resident with no physical US operation may have more latitude, so cost, upkeep, privacy, and the future business plan become useful comparison points. New Mexico, Wyoming, and Delaware are often discussed for those reasons. None requires an owner to live there, but an actual operating location, employees, regulated activity, or other state ties can still require registration elsewhere. State choice should follow those facts rather than "best state to incorporate" mythology written for a different kind of business.
New Mexico: lowest recurring state charge of these three
Among these three states, New Mexico is the low-cost option. As of 2026, the filing fee to form an LLC is about $50, and New Mexico does not require an LLC annual report or an annual state renewal fee. The state's public formation record also generally does not list member or manager names, although that is not anonymity: the registered agent is public, and banks, tax agencies, courts, and service providers can still require owner information. A lean, single-member online business with no stronger operating-state tie may value the lower recurring state charge. You still need a registered agent in New Mexico, and that service carries its own yearly cost.
Wyoming: the low-cost candidate
Wyoming is a common state for non-resident founders because of its cost and relatively light state upkeep. As of 2026, forming costs about $100, and the annual report license tax starts at roughly $60 for a small entity with no significant Wyoming-based assets. Wyoming does not impose an individual or corporate state income tax, but that does not erase federal obligations or tax and registration created by activity elsewhere. Its public filing may omit some member information, yet the registered agent, organizer, business records, bank KYC, and court process still limit any broad promise of anonymity. A bank makes its own approval decision and does not approve a company simply because it is from Wyoming. Read our full guide to the advantages and drawbacks of a Wyoming LLC for non-residents, then compare it with the broader best-state analysis.
Delaware: pay the premium only for a reason
Delaware has enormous brand recognition, which leads many founders to assume it is 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 a flat $400 annual tax on every LLC. What that premium can buy is legal familiarity: Delaware's courts and corporate statutes are familiar to venture-capital investors and their lawyers. That can matter if you plan to raise VC, take on sophisticated investors, or convert to a C-corporation. If that is not the path, the additional state cost may not produce a practical benefit. Read the full Delaware LLC guide for non-residents and the separate LLC vs C-corp analysis.
The numbers, side by side
Formation is a one-time cost; the recurring cost is what adds up. Here's the state's own fee to form, as of 2026 (registered-agent service is separate and typically runs about $50–$150 per year wherever you form):
| State | Formation fee | Recurring state fee | Annual report? |
|---|---|---|---|
| New Mexico | ~$50 | $0 | None |
| Wyoming | ~$100 | ~$60/yr | Yes (annual) |
| Delaware | ~$110 | $400/yr LLC tax; no annual report | No report; flat tax instead |
Now the number that actually decides it — the year-two total of state costs once you're up and running, assuming a registered-agent service of about $100/year for comparability:
| State | Year-one (form + agent) | Year-two onward (state + agent) |
|---|---|---|
| New Mexico | ~$150 | ~$100 |
| Wyoming | ~$200 | ~$160 |
| Delaware | ~$210 | ~$500 |
The gap among these three is real but modest in absolute terms — a few hundred dollars a year separates the lowest and highest recurring state charges. The state decision is worth getting right, but federal filing and tax obligations can be materially larger and depend on the entity's classification, owners, activity, and transactions rather than simply the formation state.
What none of these states changes
This is the part that the "cheapest state" content skips, and it's the part that matters most. Whichever of the three you choose, 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; formation funding, owner contributions, or distributions can make a quiet-looking year reportable. The initial penalty for a required form generally starts at $25,000, which dwarfs any state fee difference; our complete guide to the Form 5472 penalty covers how that works. Sales-tax exposure likewise turns on nexus and sales channels, not simply the formation state. Forming in a "no-tax" state neither creates nor removes those federal and operational questions.
One practical warning: picking wrong isn't a catastrophe, 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 — another argument for a low-cost default rather than a state chosen on reputation.
Current state sources: Wyoming publishes its official business fee schedule and annual-report rules. Delaware's Division of Corporations publishes its August 2026 fee schedule and $400 LLC-tax instructions. Fees and rules can change, so recheck the selected state's live source before filing.
Frequently asked questions
Which of these three has the lowest recurring state cost?
New Mexico, because of its roughly $50 formation fee and lack of an LLC annual report or annual state renewal fee. Wyoming has a $60 minimum annual-report license tax. Delaware charges a $400 annual LLC tax. This is a comparison of these three states, not a claim that New Mexico is uniquely cheapest among every US state.
Is New Mexico's "no annual report" a catch?
No hidden annual state renewal charge, but keep it in perspective. You still pay for a registered agent each year, and federal obligations remain separate. New Mexico removes this state line item; it does not remove federal filing analysis or obligations created by the company's facts.
I've heard Delaware is the "professional" choice. Is that wrong?
It is aimed at a different audience. Delaware can be a practical choice for companies raising venture capital or converting to a C-corp because investors and counsel are familiar with its legal system. For a self-funded online store run from abroad, that advantage may not justify the additional recurring cost.
Can I compare the full running cost, not just state fees?
Yes — our US company cost calculator combines formation, registered agent, banking, and compliance so you see the real annual number, and annual LLC costs by state breaks down the recurring side across more states.
How we help you choose
We match the state to the real plan — a lower-cost state when no operating location has a stronger claim, Delaware when the investor and legal-familiarity case is genuine, or the operating state when the business has a physical tie there. We then map the EIN, registered agent, federal information returns, and registrations that the certificate does not solve. This is part of our US market-entry work and e-commerce practice. If you're deciding where to form, talk to us first.