Wyoming, Delaware and New Mexico should be compared against the business's activities, ownership, financing plans and ongoing costs. A lower formation fee alone does not establish the cheapest or most suitable arrangement. An LLC formed elsewhere may still need registration where the business is active.
Compare the same entity and fee components
The comparison below concerns ordinary domestic LLC charges, not corporation taxes or a complete quote for running a business. It separates formation from recurring obligations and keeps source dates and material qualifications beside each component.
| State | Formation | Recurring requirement |
|---|---|---|
| Wyoming | $100Official source · checked | Annual license tax: $60 or 0.0002 × Wyoming assets, whichever is greaterOfficial source · checked |
| Delaware | $110Official source · checked | $400 annual LLC tax; no LLC annual reportOfficial source · checked |
| New Mexico | $50 ordinary domestic LLC formationOfficial source · checked | No routine SOS LLC annual/biennial report; other obligations separateOfficial source · checked |
Start with where the business will operate
The SBA explains that activity in multiple states may require formation in one and foreign qualification in others, with additional fees and reporting. A founder living outside the United States should also assess U.S. activities rather than assuming there is no operating-state question. Read forming in your operating state before treating this three-state comparison as the complete choice.
Match the structure to the financing plan
Ask prospective investors and advisers what entity, ownership rights and governance the transaction requires. Comparing a Delaware corporation with an ordinary Wyoming or New Mexico LLC mixes legal form with location. Use the LLC versus corporation guide to separate those decisions.
Privacy has limits beyond the state filing
Check the information requested by the actual state forms, subsequent reports and any address service. A commercial agent does not guarantee that every company or owner detail stays out of public records. Bank due diligence and tax reporting are separate from the public entity search.
In particular, BOI reporting rules do not establish anonymous banking or exemption from Form 5472. Compare what a service actually does instead of buying an undefined privacy promise.
Make the decision using the total arrangement
Document the reason for the chosen state and budget government charges, eligible agent or office arrangements, additional-state registrations and the business's actual tax and licensing duties. Use the 50-state comparison and cost planner for identified components, then keep the actual filing deadlines separately. Neither tool determines every obligation for a particular business.