Best States for Non-US Residents to Form an LLC
As an international founder, you can form your LLC in any US state. Here's how to choose the right one for your situation.
Overview
Since you're not physically located in any US state, you have complete freedom in choosing where to form. The decision comes down to:
- Costs: Formation fees and annual fees
- Privacy: How much information is public
- Taxes: State-level taxes on LLCs
- Reputation: How the state is viewed by banks and partners
For most international founders, Wyoming is the best choice. Delaware is better if you plan to raise venture capital.
Wyoming: Best for Most International Founders
Wyoming is our top recommendation for international founders. Here's why:
Low Costs
Wyoming has among the lowest formation and annual fees of any US state. See our pricing page for current rates.
No State Taxes
- No state income tax
- No franchise tax
- No tax on out-of-state revenue
Privacy Protection
- Member names not required on public filings
- Only registered agent address is public
- Strongest privacy laws in the US
Business-Friendly
- First state to create LLC structure (1977)
- Well-developed LLC laws
- Fast processing (1-2 business days)
Wyoming's combination of low costs, no taxes, and privacy makes it ideal for international online businesses, freelancers, and e-commerce sellers.
Delaware: Best for VC-Backed Startups
Delaware is the gold standard for corporations and is also popular for LLCs seeking investment.
Why Delaware?
- Court of Chancery: Specialized business court with expert judges
- Established law: Most developed body of corporate case law
- VC preference: Investors expect Delaware
- Professional credibility: Associated with serious businesses
Costs
Delaware has moderate costs with an annual franchise tax. Higher than Wyoming but still reasonable for funded startups.
When to Choose Delaware
- Planning to raise venture capital
- May convert to corporation later
- Complex multi-member structures
- Partners/investors expect Delaware
Side-by-Side Comparison
| Factor | Wyoming | Delaware |
|---|---|---|
| Cost Level | Low | Medium |
| State Income Tax | None | None on out-of-state |
| Privacy | Excellent (members not public) | Good (members not public) |
| VC Preference | Acceptable | Strongly preferred |
| Best For | Most businesses | VC-backed startups |
States to Avoid
Some states have drawbacks for international founders:
California
High minimum annual franchise tax, even with no income. High costs with no advantages for non-residents.
New York
Requires expensive newspaper publication. Adds unnecessary cost and complexity.
Nevada
Higher annual fees than Wyoming with similar benefits. No clear advantage over Wyoming.
Avoid forming in high-tax states unless you have a specific business reason. The state where you form matters for annual costs, even if you operate entirely online from abroad.
Frequently Asked Questions
Frequently Asked Questions
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