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You do not have to live in a state to form your LLC there. As a non-resident you can pick any state, so the choice comes down to cost, privacy, and whether you have any physical presence. For most non-resident solo founders the answer is Wyoming. If you're raising money, Delaware. Here's the honest comparison.
How to think about the choice
If you have no physical US presence — no office, no employees, no inventory in a warehouse — you are not tied to any state and should optimize for low cost, privacy, and no state income tax. If you do have presence in a specific state, form there to avoid registering as a “foreign LLC” twice.
Wyoming — the default for non-residents
Low formation and annual fees, strong owner privacy, and no state income tax. Wyoming is the state most non-resident solo founders land on, and you can operate anywhere from it. Unless you have a specific reason to choose otherwise, this is the safe pick.
Delaware — for raising money
Delaware is the standard if you'll take on investors or want the most established, predictable legal framework. It costs a bit more (franchise tax, registered agent), and its real advantages show up at the C-corp/venture level. For a bootstrapped LLC, you're paying for prestige you may not need.
New Mexico — the cheapest
New Mexico has no annual report and strong privacy, making it the lowest ongoing-cost option. The trade-off is a smaller ecosystem of services and slightly less name recognition with banks. If minimizing cost is the priority, it's a legitimate choice.
Florida — if you have US nexus
Florida makes sense if you expect any physical presence in the US (especially the Southeast) or spend time there. No state income tax, larger economy, but public ownership records (less privacy than Wyoming or New Mexico).
Side by side
| State | Best for | Privacy | Ongoing cost |
|---|---|---|---|
| Wyoming | Most non-residents | High | Low |
| Delaware | Raising money | Medium | Higher |
| New Mexico | Lowest cost | High | Lowest |
| Florida | US physical nexus | Low | Medium |
Does the state change my US taxes?
For a non-resident-owned LLC with no US presence and only foreign-sourced income, none of these states impose income tax that applies to you — and federal treatment is the same regardless of state. What changes is fee and privacy, not your federal filing obligation (you still file Form 5472). Confirm your specifics with a cross-border accountant.
The practical answer
Pick Wyoming unless you have a specific reason not to. Then follow the full sequence — EIN without an SSN, banking, compliance — in the non-resident LLC playbook, or let doola / Firstbase handle the filing and EIN for you. Comparing services first? doola vs Firstbase vs Globalfy.