For those not tied to a home state — non-residents and some online businesses — a few states dominate the shortlist for good reasons.
What actually matters
- Recurring annual cost (more than the one-time fee).
- Privacy of ownership.
- Annual report and franchise obligations.
The popular choices
Wyoming (low cost, privacy), New Mexico (low upkeep), and Delaware (for raising capital). Full breakdown in Wyoming vs Delaware vs New Mexico.
Home-state note
If you operate from a fixed US state, forming there is usually best — see form in your home state?
Some links on this page are partner links. We may earn a commission at no extra cost to you — always labeled. For official filings you can use your state's .gov registry directly. This is general information, not legal or tax advice.
Frequently asked questions
What is the best state to form an LLC?
There's no single best — Wyoming for cost/privacy, New Mexico for low upkeep, Delaware for raising capital, or your home state if you operate there.
Is Delaware the best state for an LLC?
Only for companies raising venture capital. For small or non-resident businesses, Wyoming or New Mexico is often better value.