Home > Knowledge Base > Best State for LLC Guide

Best States for LLC: Wyoming vs Delaware vs New Mexico (Non-Residents Guide)

Choosing the best state for a US LLC is one of the most important decisions for non-residents from the EU and UK.

The three most popular options are Wyoming, Delaware, and New Mexico — but they are not equal.

This guide compares Wyoming vs Delaware vs New Mexico LLC to help non-US residents choose the right state.

Wyoming LLC for Non-Residents

Wyoming is often considered the best state for LLC for non-residents.

Key benefits:

  • No state income tax
  • Low annual fee
  • Strong privacy protection
  • Simple compliance requirements

Best for:

  • EU & UK online businesses
  • SaaS, e-commerce, consulting
  • Founders who want low costs + banking compatibility
⚠️ Wyoming LLCs are widely accepted by US banks and payment processors.

Delaware LLC for Non-Residents

Delaware is famous, but often misunderstood.

Key benefits:

  • Strong legal system
  • Preferred by investors and VC-backed startups

Limitations for non-residents:

  • Higher annual costs
  • Franchise tax requirements
  • No real benefit if you don’t plan to raise US venture capital

Best for:

  • Startups planning US investment
  • Companies with complex ownership structures
⚠️ For most EU & UK founders, Delaware is unnecessary and more expensive.

New Mexico LLC for Non-Residents

New Mexico is often promoted as a “privacy state”.

Key benefits:

  • No annual state report
  • Public owner information not required

Risks & limitations:

  • Weaker banking reputation
  • More scrutiny from payment processors
  • Less predictable compliance environment

Best for:

  • Very simple structures
  • Founders prioritizing privacy over banking ease
⚠️ Many non-residents face bank or Stripe issues with New Mexico LLCs.

Wyoming vs Delaware vs New Mexico — Comparison Table

Feature Wyoming LLC Delaware LLC New Mexico LLC
State income tax ❌ No ❌ No ❌ No
Annual fees Low Medium–High Very low
Privacy High Medium High
Banking compatibility ⭐⭐⭐⭐ ⭐⭐⭐⭐ ⭐⭐
Best for non-residents ✅ Yes ❌ Usually no ⚠️ Limited

Which State Is Best for EU & UK Residents?

In most cases:

✅ Wyoming LLC is the best choice for non-residents
❌ Delaware LLC only makes sense for VC-backed startups
⚠️ New Mexico LLC can cause banking and payment issues

Choosing the wrong state can lead to:

  • Higher costs
  • Rejected bank accounts
  • Payment processor freezes
  • Unnecessary compliance risks

Final Recommendation

For EU & UK non-residents, the best state to register an LLC in the USA is usually Wyoming — unless you have a specific legal or investment reason to choose otherwise.

Professional guidance helps avoid costly mistakes and ensures your LLC is bank-ready and compliant from day one.

Get Professional State Selection Help

Disclaimer: This content is for informational purposes only and does not constitute legal or tax advice.