Quick answer
For a simple non-resident LLC, Wyoming is often the first state to compare because it has a moderate formation fee, a relatively low annual license tax minimum, and a strong reputation among privacy-conscious small business owners. Delaware is usually better when you specifically need Delaware's legal ecosystem or investor familiarity. Florida and Texas can be attractive if you actually operate there, but they are not automatically cheaper for a founder who lives or works somewhere else.
The biggest mistake is choosing a famous LLC state without checking whether the company will also need to register in the state where it actually does business. That can turn one filing into two filings, two registered agents, and extra annual reports.
| State | Why founders compare it | Watch-out |
|---|---|---|
| Wyoming | Popular for lower ongoing state cost and non-resident use cases. | You still need a registered agent and may owe compliance where you operate. |
| Delaware | Familiar legal brand for investors and formal business structures. | The annual LLC tax is a real recurring cost for small companies. |
| Florida | Strong if the business is actually based in Florida. | Annual report fees and local rules still matter. |
| Texas | Large market and no standard annual report fee in this calculator model. | Texas franchise tax reporting still requires attention. |
| New Mexico | Often compared for low state fees and a simple ongoing fee picture. | May not be the right state if operations are somewhere else. |
What "non-resident LLC" really means
A non-resident LLC usually means the owners do not live in the state where the LLC is formed. It can also mean the owners are outside the United States. Those are different situations. A U.S. resident forming in another state must think about home-state registration. A non-U.S. founder also has federal tax classification, EIN, banking, payment processor, and annual information filing issues to understand.
This page is about state choice and startup cost. It is not tax advice. If the owner is outside the U.S., the cheap filing fee is usually only one line item in a larger compliance budget.
When Wyoming is the practical first comparison
Wyoming is popular because the state-only numbers are easy to understand: a formation filing, a registered agent if you are not physically there, and an annual report license tax. The Wyoming Secretary of State's own annual report worksheet says the filing fee is $60 or two-tenths of one mill on the dollar, whichever is greater.
That does not mean Wyoming is always best. It means Wyoming is often the cleanest benchmark when a founder wants a non-resident-friendly LLC and does not have a better reason to choose Delaware.
When Delaware is worth comparing
Delaware is not usually the cheapest simple LLC state. It is popular because lawyers, investors, and larger business structures know Delaware well. The Delaware Division of Corporations says domestic and foreign LLCs, LPs, and GPs formed or registered in Delaware must pay a $300 annual tax and do not file an annual report.
If you are building a small solo consulting business, that recurring tax may feel high. If you are building a company where Delaware familiarity matters, it can be a reasonable cost of doing business.
Choose the state where the business actually operates unless there is a specific reason to choose another state. If you choose another state, budget for registered agent service and possible foreign qualification in the real operating state.
Best next step
Run the calculator for your real operating state, Wyoming, and Delaware. If the "cheap" state still looks attractive after registered agent and foreign qualification costs, then compare privacy, tax, banking, and administration.
Official sources to check
- Wyoming annual report worksheet for the license tax minimum.
- Delaware LLC/LP/GP tax instructions for the $300 annual tax.
- Texas Form 205 instructions for the LLC filing fee and registered agent note.