MiLLCenUSA Blog

Wyoming vs New Mexico vs Delaware: Which State for Your LLC in 2026

14 oct 2026 · 6 min read · MiLLCenUSA

The state where you form your LLC determines how much you pay every year, how much privacy you have and how banks see you. This is the comparison company formation services do not always tell you in full.

Wyoming: the classic balance

The historical favorite of non-residents. Fees: about $100 to form and $60/year for the annual report. Privacy: member names are not published in the state registry. Taxes: no state income tax. Its only drawback: being so popular, some digital banks scrutinize it slightly more than a few years ago.

New Mexico: the zero-cost champion

The best-kept secret. No state annual report is required (saving the $60–300/year other states charge), formation costs about $50, and it does not disclose members either. For an LLC with modest activity it is hard to beat in total cost. That said, if you ever seek professional investors, Delaware remains the standard.

Delaware: the investor option

The state of venture-backed startups. Its Court of Chancery and century-old business law give confidence to funds and VCs. But for 95% of non-residents it is overkill: $300 formation fee, $300 annual franchise tax and pricier registered agent requirements.

Quick comparison

• Total annual cost (passive LLC): New Mexico ≈ $0–50 · Wyoming ≈ $60 + agent · Delaware ≈ $300.
• Member privacy: all three hide names from the public registry.
• Banking reputation: Wyoming and Delaware impeccable; New Mexico very good and improving.
• Best for: NM → minimum cost; WY → balance; DE → raising capital.

And the states you should avoid

California ($800/year minimum even with zero revenue), New York (mandatory publication in two newspapers that can cost $1,000+) and Nevada (business taxes that many «gurus» forget to mention). If your business does not physically operate there, there is no reason to form in those states.

Conclusion

For most non-residents, New Mexico or Wyoming win by a landslide. We recommend the right state for your specific case within the plan, at no extra cost.