Wyoming vs Delaware vs New Mexico — The Honest Non-Resident's State Choice (2026)

Is Delaware actually better than Wyoming for non-residents?

For most non-resident founders, Wyoming or New Mexico is the right state for a US LLC; Delaware is only correct for venture-backed startups planning to convert to a Delaware C-Corp. Wyoming offers strong privacy, $60/year renewal, and no state income tax. New Mexico is the cheapest at $50 to file and $0 annual report. Delaware costs $350/year ($300 franchise tax + $50 annual report) with no offsetting benefit for solopreneurs, e-commerce sellers, agencies, or SaaS founders.

Walk into any Reddit thread, watch any YouTube video aimed at "non-resident LLC," or click through to Stripe Atlas, and you'll hear the same default: Delaware. Delaware Delaware Delaware. It's where Stripe Atlas files. It's where US VCs invest. It must be the right answer.

It usually isn't.

Stripe Atlas was built for venture-backed software startups planning to convert to a Delaware C-Corp during their Series A. For that exact use case, Delaware is correct. For everyone else — non-resident solopreneurs, Amazon sellers, agency owners, freelancers, SaaS bootstrappers — defaulting to Delaware costs you $350 a year forever ($300 franchise tax + $50 annual report) for legal protection that Wyoming or New Mexico provide for $0–$60 a year.

Over a five-year LLC lifespan, that's $1,500 of pure overhead you didn't need to spend. Over ten years, $3,500. And nothing about the LLC's operation, banking, or Stripe acceptance is improved by paying it.

"Damn, was planning to have it in Delaware." — Reddit user, r/llc, on learning about Delaware franchise tax

This guide compares the three states that actually make sense for a non-resident LLC: Wyoming, Delaware, and New Mexico. We're honest about which beats which, when, and why. (Single-member LLCs default to pass-through tax treatment under IRS LLC classification rules, so US federal tax exposure is identical across all three states.)

Wyoming vs Delaware vs New Mexico: how do the numbers compare?

The numbers below are the 2026 official rates direct from each Secretary of State. State filing fees, annual report fees and franchise tax are the only state-level recurring costs; registered agent (~$50–$125/year) is on top, identical in any state.

Two things stand out from that table. One: Stripe and Mercury accept all three identically — the state choice does not affect your access to US payment rails. Two: Delaware costs seven times Wyoming's annual recurring fee, and infinitely more than New Mexico's. The legal protection is identical in all three.

Why is Wyoming the default for non-resident solopreneurs?

Wyoming is what we file in roughly 70% of cases at USLLCGlobal. It's where the broad consensus on r/llc and r/llc_life lands, and the reasoning holds up under scrutiny.

The Wyoming numbers

• State filing fee: $100 (one-time)
• Annual report: $60 minimum, due each year on the anniversary month
• Franchise tax: $0
• State income tax: $0 (Wyoming has no personal or corporate state income tax)
• Processing: 1–3 business days standard; same-day expedite available for $50 extra
• Anonymous LLC: Permitted — only the registered agent is on public record

What Wyoming gives you

Strong asset-protection statutes (charging-order protection, no piercing-the-veil case law worth worrying about), the simplest annual filing in the country, and a Wyoming Secretary of State business division that's used to non-resident filings (so they're not going to get spooked by a Pakistani or Brazilian responsible party).

"Wyoming is a tax free state so no personal or corporate taxes to worry about. Tax free at the state level. State selection is 100% correct." — Sam from RBL, in a 13-upvote response on r/llc, December 2024

Wyoming is the right answer if you're a non-resident solopreneur (Amazon FBA, dropshipping, SaaS, agency, freelance), you want anonymity, and you're not raising VC. Full state breakdown on our Wyoming page.

When is Delaware genuinely the right state for a non-resident LLC?

We're not anti-Delaware. There are real, specific situations where Delaware beats both Wyoming and New Mexico, and pretending otherwise would be dishonest.

Delaware is the right call if…

• You're raising or about to raise US venture capital. US VCs almost universally require Delaware C-Corps. If your LLC will convert to a C-Corp inside 18 months, forming as a Delaware LLC now means a clean in-state conversion later instead of a multi-state restructure.
• You're going through Y Combinator or Techstars. Their standard term sheets assume Delaware. Going off-script costs you legal hours, not investor goodwill.
• You're issuing equity to multiple US co-founders or employees. Delaware's case-law density on stock issuance, vesting, and minority-shareholder rights genuinely matters here.
• You're operating a regulated entity. Investment advisors, broker-dealers, and certain fintechs benefit from Delaware's specialised Court of Chancery.

The Delaware numbers (so you go in eyes-open)

• State filing fee: $90 (one-time, lowest of the three)
• Annual report: $50 due 1 June every year
• Franchise tax: $300 minimum, every year, even with $0 revenue
• Total Year 1: $440. Year 2 onwards: $350/year
• Processing: 5–10 business days standard (slowest of the three); $100 expedite gets it to 1–2 days
• Anonymity: Member names are not public, but the manager and registered agent are

Delaware gives you a premium jurisdiction. The Court of Chancery has 200 years of business case law, Delaware judges are sophisticated about commercial disputes, and "Delaware default rules" are the lingua franca of US corporate lawyers. The official source for fees and franchise tax is the Delaware Division of Corporations. For non-resident SaaS bootstrappers earning $5k a year? You're paying $350 annually for a Mercedes when a Toyota gets you to the same destination.

If you genuinely fit one of the four cases above, see our Delaware page. If you don't, keep reading.

Why is New Mexico the cheapest state to form an LLC?

New Mexico almost never appears in mainstream "best state for LLC" articles. It should. We pulled this verbatim from r/llc:

"What about forming the LLC in New Mexico? No annual report and cheaper starting fee." — Reddit user, r/llc, December 2024 (replying to a Wyoming-vs-Delaware thread)

That comment is almost an aside in a long thread, but it's the most accurate single sentence about state choice for cost-conscious non-residents on the entire internet.

The New Mexico numbers

• State filing fee: $50 (the cheapest in the United States)
• Annual report: None. New Mexico LLCs do not file an annual report at all
• Franchise tax: $0
• State income tax: Yes — but only on income sourced inside New Mexico, which a non-resident with no NM customers will not have
• Processing: 1–2 business days, occasionally same-day
• Anonymous LLC: Yes — New Mexico does not require member or manager names on public filings

The trade-offs (so you don't get blindsided)

• Less name recognition. Some banks' compliance teams know Wyoming and Delaware on autopilot but raise an eyebrow at New Mexico. In practice this adds zero friction at Mercury and Wise; we've seen one or two extra questions at Bank of America branches.
• Slower amendments. If you later need to amend the Articles of Organization (changing name, adding a member, etc.), New Mexico turnaround is slower than Wyoming.
• Less case law. If you ever sue someone or get sued, the volume of NM business case law is thinner. For a solopreneur this almost never matters.

For absolute lowest total cost of ownership over the LLC's life, New Mexico wins outright. $50 to form, $0 every year after. Stripe and Mercury accept it identically to the other two. If your priority is "minimum recurring overhead," this is the answer. The New Mexico Secretary of State business services page is the official source for filing details. See our New Mexico page and the dedicated cheapest state LLC guide.

Why shouldn't most non-residents pick Florida, Texas, or Nevada?

The three states that come up next in non-resident searches are Florida, Texas, and Nevada. Each has a story; none beats Wyoming or New Mexico for a non-resident solopreneur.

Florida ($125 + $138.75/yr)

Popular for US-resident entrepreneurs because of no state income tax. For non-residents, the $138.75 annual report fee is high relative to Wyoming's $60, and Florida's compliance system charges late fees aggressively. Reasonable choice only if you have a Florida-based co-founder or actually operate locally (rental property, real estate).

Texas ($300 + franchise tax over $1.23M revenue)

Texas charges $300 just to form, four times New Mexico, and adds franchise tax once revenue clears about $1.23 million. The Public Information Report is filed annually. Defensible for ventures that genuinely operate in Texas. Indefensible for a non-resident SaaS founder picking a paper jurisdiction.

Nevada ($75 + $200–$500 business licence + $150 list of officers)

Nevada used to be the privacy state. Then it added a State Business Licence fee ($200 base, higher for some industries) and a $150 Annual List of Officers, pushing total annual costs above Delaware. Wyoming now wins on every dimension Nevada used to claim — lower fees, equivalent privacy, better statutes.

"All three seem solid but I can't figure out which one actually makes more sense for someone who's never stepping foot in the US." — Reddit user, r/llc_life, March 2026

If you're "never stepping foot in the US," your filtering criteria are: lowest recurring fee, fastest processing, anonymous member ownership, and Stripe/Mercury acceptance. Wyoming, New Mexico, and Delaware-only-if-VC are the three that survive. The others are noise.

Decision Framework: Match a Profile to a State

Below are the five reader profiles we see most often. Find yourself, and the state recommendation is on the right.

• You're an Amazon FBA seller from Pakistan, Bangladesh or India

  You need a clean LLC, an EIN for Amazon Seller Central US verification, and Mercury or Wise to receive Amazon disbursements. You will not raise VC. You want fast formation and anonymity. Pick Wyoming. Roughly $160 in Year 1, $60 a year after. The Wyoming filing date stamps land in 1–3 days, fast enough that your Amazon application doesn't time out.

  Skip the decision: Our Business Ready package ($549) files Wyoming, gets your EIN inside 5 US business days (refund guaranteed), and walks you through Mercury onboarding for Amazon disbursements.

• You're an agency owner from India, Egypt or Turkey billing US clients

  You need an LLC name your US clients recognise on invoices, an EIN for the W-9s your US clients will request, and Stripe to actually charge them. You're not raising VC. Pick Wyoming or New Mexico, depending on cost preference. New Mexico is cheaper forever ($50 once, $0 a year); Wyoming has stronger name recognition with bank compliance teams.

  Skip the decision: Tell us your top concern (cost vs recognition) and we'll match the state. $549 Business Ready — LLC + EIN + bank guidance →

• You're raising US venture capital (or about to)

  You're doing YC, Techstars, or a US-led seed round inside 12–18 months. You will convert to a C-Corp. Pick Delaware. The recurring $350/year is irrelevant noise compared to the legal cost of a multi-state restructure later. Form as an LLC initially or skip straight to a Delaware C-Corp depending on investor signal.

  Skip the decision: Our Complete package ($999) files Delaware, gets your EIN, includes the first year's franchise tax filing, and prepares you for C-Corp conversion. File my Delaware LLC →

• You're keeping costs to the absolute minimum

  This is your first venture, you're building lean, and every $50 matters. You want a real LLC for liability protection, EIN for Stripe and Mercury, and the lowest recurring footprint humanly possible. Pick New Mexico. $50 once, $0 every year after. The only competitor on cost is no LLC at all, which costs you Stripe access.

  Skip the decision: Our Essential package ($349) files New Mexico + Operating Agreement + registered agent. Add EIN for $199 with refund guarantee. File my New Mexico LLC →

• You're a SaaS founder from Brazil, Vietnam or the Philippines

  You sell digital products to a global customer base and need Stripe to function. You're not raising VC. You want Stripe approved on day one, and Mercury opened the same week. State doesn't really matter to your business operation — you'll never visit the state. Pick Wyoming by default; pick New Mexico if every dollar counts. Avoid Delaware unless you are raising VC. Do not waste cycles deciding — the difference between Wyoming and New Mexico is small enough that "either is fine" is a correct answer.

  Skip the decision: $549 Business Ready includes LLC + EIN + Stripe walkthrough + Mercury onboarding help. Default state is Wyoming; ask for New Mexico in checkout if you prefer.

Related Reading

If you came here because of a specific concern that wasn't really about state choice, these will be more useful:

• How to Get an EIN Without an SSN (2026) — the IRS phone process, Form SS-4 box-by-box, and why most non-resident DIY applications get rejected at Step 4.
• Anonymous LLC: What It Actually Means in 2026 — the BOI/CTA changes, member privacy, and what's still public in each state.
• Cheapest State to Form an LLC (Honest Numbers) — deeper dive on New Mexico and a comparison with Kentucky, Mississippi, Arkansas.