Forming a Limited Liability Company (LLC) in the United States is one of the smartest ways to start a business, especially for non-residents. However, one of the most common questions entrepreneurs ask is:
“Which state is the cheapest to register an LLC?”
While cost shouldn’t be the only factor when choosing where to register, understanding each state’s formation and maintenance fees can help you save significantly — especially if you’re just starting.
Let’s explore which U.S. states offer the most affordable LLC formation options and what factors you should consider beyond price.
Understanding LLC Formation Costs
Before we jump into the list, it’s important to understand what affects the total cost of forming an LLC:
- State Filing Fee: The one-time fee you pay to form your LLC.
- Annual or Biennial Fees: The cost to keep your LLC active each year.
- Registered Agent Fee: A required service that receives legal mail on behalf of your company.
- Franchise or Business Tax: Some states charge this even if your LLC makes no income.
With these in mind, let’s look at the most affordable states to form an LLC.
1. Wyoming — The Best All-Around Choice
Wyoming consistently ranks as one of the cheapest and most business-friendly states for LLC formation.
- Filing Fee: $100
- Annual Fee: $60 (based on assets located in Wyoming)
- State Income Tax: None
- Privacy: Strong (no public disclosure of owners)
In addition to low costs, Wyoming offers excellent privacy protection and simple reporting requirements, making it ideal for non-residents and startups.
Why choose Wyoming?
If you value affordability, privacy, and easy compliance, this is your go-to option.
2. Delaware — The Global Business Favorite
Delaware is famous worldwide for its corporate-friendly legal system, though it’s slightly more expensive than Wyoming.
- Filing Fee: $90
- Annual Franchise Tax: $300 flat for LLCs
- State Income Tax: None (for businesses not operating in Delaware)
- Privacy: High (minimal public information required)
Why choose Delaware?
If you plan to attract investors or grow your business internationally, Delaware offers unmatched legal advantages and credibility.
3. New Mexico — The Budget-Friendly Alternative
New Mexico offers one of the lowest startup and ongoing costs in the country.
- Filing Fee: $50 (one-time only)
- Annual Fees: None
- State Income Tax: Yes (if operating in the state)
- Privacy: Excellent (anonymous LLCs allowed)
Why choose New Mexico?
If you want to register an LLC cheaply and don’t plan to open a physical office in the U.S., New Mexico is a great option — especially for passive income or online businesses.
4. Florida — Affordable with Great Business Access
Florida is another attractive state for entrepreneurs, especially those who want access to a large U.S. market.
- Filing Fee: $125
- Annual Report Fee: $138.75
- State Income Tax: None for individuals
- Privacy: Standard
Why choose Florida?
If your business caters to U.S. clients or operates online, Florida offers affordability, a strong economy, and no personal income tax.
5. Montana — Low Fees, High Savings
Montana might not be the first state that comes to mind, but it’s one of the cheapest when it comes to registration and ongoing maintenance.
- Filing Fee: $35
- Annual Report Fee: $20
- State Income Tax: Yes (if operating locally)
Why choose Montana?
If you want to keep upfront and renewal costs minimal, Montana provides one of the lowest fee structures in the U.S.
Choosing the Right State — Cost vs. Practicality
While Wyoming, Delaware, New Mexico, Florida, and Montana all offer affordable options, choosing a state based purely on price can sometimes backfire.
Consider these factors before making your final decision:
- Do you plan to physically operate your business in the U.S.?
- Will you need a U.S. bank account or payment processor?
- Do you need strong privacy protection?
- Will your LLC have multiple owners or investors?
For most non-residents, Wyoming remains the top choice due to its balance of low cost, privacy, and flexibility.
Final Thoughts
Choosing the cheapest state to form an LLC depends on your business goals and budget. While New Mexico and Montana win on price, Wyoming offers the best overall combination of cost, protection, and simplicity.
At Corpulate.com, we help non-residents set up their LLC, EIN, ITIN, and bank accounts efficiently — ensuring you save both time and money while staying compliant with U.S. law.
If you’re ready to start, we’ll help you choose the right state for your business today.
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FAQ’s:
New Mexico and Wyoming are the cheapest overall. New Mexico offers a $50 filing fee and no annual reports, while Wyoming provides excellent privacy and low annual fees.
Wyoming is the best for privacy and cost. Delaware is ideal for startups seeking investors or international credibility.
Yes, all 50 states allow non-residents to form LLCs. You only need a registered agent and a U.S. business address.
No. You can register in any state, even if you live abroad. However, you may still need to file taxes in your home country.
New Mexico has no annual reports or fees, making it the cheapest long-term option.
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