When choosing a jurisdiction for registering an LLC in the US, it is important to understand the tax and administrative conditions of each state. Let's look at three popular options — Wyoming, Delaware, and New Mexico — to understand which one is best for your situation.
Wyoming: minimum taxes and maximum protection
- No corporate or personal income tax, franchise tax is excluded.
- Low cost of doing business: one-time registration fee of $100, annual report from $50–60.
- Confidentiality and asset protection: owner information is not published, effective protection from creditors.
- Stability and popularity: a sharp increase in company registrations in recent years indicates entrepreneurs' confidence in Wyoming.
Delaware: corporate infrastructure and legal reputation
- No sales tax and minimal income tax for companies with no operations within the state.
- Annual franchise tax ≈ $300, registration fee — approximately $90.
- High-level legal system: specialized corporate court — Chancery Court, developed case law.
- Attractiveness to investors: the state is popular among startups planning venture financing or an IPO.
New Mexico: savings on reporting and simplicity
- One-time and low administrative costs: registration ≈ $50, no annual reports or franchise tax.
- Taxes: corporate rate — 4.9–5.9%, personal rate — 1.7–4.9%.
- Moderate transparency: Compared to Wyoming, privacy is lower, but easier to administer for businesses that do not require complex structures.
Comparison: a brief overview
| State | Taxes | Annual Expenses | Privacy | Ideal For |
|---|---|---|---|---|
| Wyoming | No state tax, no franchise tax | ~$60 | High | Small businesses, freelancers, confidential income |
| Delaware | No income tax for remote LLCs, franchise tax applies | ~$300 | Medium | Startups with investments, IPOs, complex structures |
| New Mexico | Corporate 4.9–5.9%, Personal 1.7–4.9% | ~$50, no reports | Average | Savings on reporting, local services |
Conclusions
— Wyoming offers maximum savings and privacy — great for small and international businesses.
— Delaware — the choice for companies with ambitious goals and investors.
— New Mexico — beneficial for those who want to minimize administrative costs with moderate taxes.
Picking the right state for your case — taxes, goals, asset protection — takes one consultation. Write to us and we will put the structure together with you.
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