There's a myth that everyone should form in Delaware or Wyoming. For most US residents, forming in your home state is simpler and cheaper — here's why.
The foreign qualification trap
If you form in State A but actually do business in State B (your home), you often must also register in State B as a "foreign LLC" — paying fees in both. The supposed savings vanish.
When home-state is right
If you live and operate in one state, form there. It's the least paperwork and cost.
When another state makes sense
Non-residents (no home state) and certain online or holding businesses may genuinely benefit from Wyoming, Delaware, or New Mexico — see best states.
Frequently asked questions
Should I form my LLC in Delaware?
Only if you're raising venture capital or have a specific reason. Otherwise home-state formation is usually cheaper and simpler.
What is foreign qualification?
Registering your out-of-state LLC to legally do business in another state — often required if you form away from where you operate.
Do non-residents have a home state?
No — non-residents can form in any state, so the home-state rule doesn't constrain them.