If you're not tied to a home state, three states come up again and again. They win for different reasons — here's the honest breakdown.
Wyoming
Low fees, strong privacy, no state income tax; a frequent non-resident default. Small annual report/license fee applies.
Delaware
The standard for companies raising venture capital. For small businesses, you often pay for prestige you won't use, plus the annual franchise tax.
New Mexico
Low cost and notably minimal ongoing upkeep, with privacy — good for founders who want the least maintenance.
Which to pick
| Raising VC / issuing stock | Delaware |
|---|---|
| Low-cost, private, minimal upkeep | New Mexico or Wyoming |
| Non-resident SaaS / services | Wyoming (common default) |
Frequently asked questions
Which state is cheapest for an LLC?
New Mexico is often cited among the cheapest with minimal ongoing requirements, while Wyoming and Delaware have low but recurring fees — confirm current figures.
Is Delaware worth it for a small business?
Usually only if you're raising venture capital. Otherwise Wyoming or New Mexico is typically cheaper with less upkeep.
Which state is best for privacy?
Wyoming and New Mexico are commonly chosen for privacy of ownership — verify current state rules.