A Lisbon-based graphic designer charges $9,000 per month from Austin and Brooklyn clients. She has never been to the United States. A guy who is working from a co-working space in Bali, runs a Shopify store, ships to American buyers every day, and pays himself with a US bank account opened from his phone. Neither of them is a citizen of the United States. They both lack a green card. Both own a US LLC for Non-Residents.
That’s not a loophole at all. It’s the way the system is constructed. The United States is one of the few countries in the world that allows a complete stranger to have 100% of a registered company, open a real US bank account and invoice US clients in dollars without ever setting foot in the United States.
However, most people get tripped up here because there are 50 states, and each blog post offers a different response to choose from. So let’s just get to the point. In this guide, you’ll discover the best states for LLC for non-residents, why, and which state is best for you: based on actual 2026 costs and fees, tax laws, and banking for non-residents, not guesswork.
Wait, Can a Non-US Resident Even Form an LLC?
Yes. Flat out, yes. No part of US law stipulates that you must be a citizen, green card holder or even visa holder to own an LLC. No Social Security Number required. No need for a US partner. You don’t need to have visited the country.
All you need are a few things: a registered agent that has a physical address in the state where you are filing, a filing with the state’s Secretary of State, and a federal tax ID from the IRS called an EIN. That is the entire list. The state doesn’t care about the rest: be it nationality, home address or your passport.
That’s why an Amazon seller in Hamburg, a marketing consultant in Mexico City, and a software developer in Karachi can all open an LLC for Non-Residents in the US without moving an inch.
What Actually Makes a State “Best” for You
This is the part that nobody explains clearly. When you are an entrepreneur in the United States operating from home, you virtually must form your LLC in your home state. You don’t get a choice.
Non-residents are different. If your business has no physical location in the US (no office, no warehouse, no employees on US soil) then you are not “doing business” in any particular state. That means you get to shop around. There are 50 states to choose from, literally any state.
Therefore, what should you consider when selecting? Four things, in the order of their importance:
- Filing and annual fees: How much it costs to start and how much it costs after that.
- Privacy rules: whether your name will appear in a public state database.
- Tax structure: no state automatically taxes a non-resident with no US activity, but some states impose franchise taxes or gross receipts taxes, etc.
- Banking friendliness: some states are instantly recognized by Mercury, Wise, and Relay; others raise extra questions.
What’s missing from that list? “low taxes”. That’s on purpose. A state without income tax only helps you if your business actually generates income tied to that state. Starting up in a zero-tax state does not decrease your federal tax liability, but it does keep your state-level tax paperwork neat and tidy and avoid any confusion later.
These four filters narrow the field quickly. Let’s see state by state.
Best States for LLC for Non-Resident
Not all states deserve to be on this list. Some are too costly. Others make sense only when you live there or operate there.
The following states always score high when it comes to international founders.
Wyoming: The Default Pick for Most Non-Residents
If you ask 10 formation attorneys where the best place to form a remote LLC for Non-Residents is, seven of them will say Wyoming. It’s not hype. Numbers prove it.
It turns out that the LLC structure was actually created in Wyoming in 1977, long before Delaware adopted it. Since that time, it has continued to evolve and enhance the law, and remains the most owner-friendly state in the country.
In reality, that translates to:
Cost: It costs about $100 to file and approximately $60 per year to keep it active. That is one of the lowest rates in the entire country.
Privacy: Wyoming doesn’t require a member’s name to be included on public formation documents. You can use address of registered agent or nominee manager, and your actual name won’t even be listed on the public record.
Taxes: No state income tax, no corporate tax, no franchise tax. If your company is not engaged in Wyoming-based activities, then the state is not taxing you.
Asset protection: Wyoming offers some of the most robust charging-order protections in the states and unlike many states, it’s available for single-member LLCs as well as multi-member LLCs.
Banking: Wyoming LLCs have a proven history with online banking service providers, such as Mercury, Wise Business, and Relay. Approval tends to be faster and smoother than with lesser-known states.
That’s why Wyoming continues to be one of the top states for non-residents to incorporate an LLC for their freelance, consulting, dropshipping or SaaS business that sells products internationally. When in doubt, go with the safe and boring and reliable Wyoming, because boring is good when it comes to compliance.
Delaware: Built for Startups Chasing Investors
Delaware’s reputation is well-deserved. Over half of the Fortune 500 companies are incorporated there, and it isn’t by chance: it’s because of a century of business-friendly judicial rulings.
The biggest attraction is the Court of Chancery, a court devoted to resolving business conflicts. There’s no jury. Only judges with experience in corporate law, resulting in quicker and more predictable rulings in the event of a legal dispute.
Additionally, Delaware’s corporate laws are flexible, allowing you to set up the structure of ownership, voting power, and profit allocation in nearly any manner. That’s the kind of flexibility that Venture Capital Companies are looking for before they write a check.
The catch is cost. No matter how much money your LLC generates, there is a flat annual Delaware franchise tax of $300. There’s no annual report to file, but this flat tax can be an issue for a small business with low profit margins.
For Whom Delaware actually makes sense: Founders who intend to raise VC money, businesses that will eventually want to become a C-Corp, or individuals who want the instant credibility of having a Delaware address on their paperwork.
Who should avoid it: A single freelancer or a small e-commerce seller who has no plans of attracting investors. $300 annually for prestige you do not require is money better spent somewhere else.
New Mexico: The Cheapest LLC in the Country
If your only goal is rock-bottom cost, New Mexico wins outright. It charges a one-time $50 filing fee and this is the part that surprises people: there is no annual report and no recurring state fee, ever.
That means a New Mexico LLC for Non-Residents can run for years without costing you another dollar in state fees. Privacy is solid too. Member names aren’t published in the public record, similar to Wyoming.
The downside is real, though. New Mexico doesn’t have an online filing portal the way Wyoming and Delaware do, which slows things down. It also doesn’t issue a Certificate of Good Standing easily, which some banks and payment processors ask for during account verification. A few non-residents have reported extra friction when opening bank accounts with a New Mexico entity, simply because it’s less familiar to compliance teams.
Who it fits: extremely budget-conscious founders, side projects, or anyone testing a business idea who wants the legal protection of an LLC for Non-Residents without locking into yearly costs.
Nevada: Strong Reputation, Higher Price Tag
Nevada gets recommended a lot, mostly because of its no-state-income-tax policy and decent privacy protections. But for most non-residents, it’s the most expensive option on this list. Combined state fees can run over $400 a year once you add the business license fee on top of the annual list filing.
That’s a real gap compared to Wyoming’s $60. Unless you have a specific legal reason to prefer Nevada (say, your attorney recommends it for a particular asset-protection strategy), the extra cost rarely buys you anything Wyoming doesn’t already offer at a quarter of the price.
Texas and Florida: When a Big Market State Makes Sense
Texas and Florida aren’t typically included in the “best state” lists for fully-remote, no-presence companies. However, they do have other reasons to reconsider: If you are looking for states with a physical presence (a warehouse, a small office, US-based workers), these may be worth a second look.
Texas is one of the largest economies in the state and has no state income tax. The filing fee is about $300, with zero annual franchise tax on revenues below about $1.23 million. That’s a good business plan for a firm that would like to have a real presence in the United States at some point in the future.
Florida‘s much improved ranking also put it in the top five states for new business formation in 2024. Personal income tax is also absent and it offers a large market to consumers that is attractive to non-residents as they rely on the US consumer to generate a significant portion of their income.
Wyoming can’t be matched when it comes to cost and privacy. However, if your road map is to be present in the US sometime soon, it may be wise to register where you want to run in the future so that you don’t have to register twice in the future.
States to Avoid as a Non-Resident
There must be a warning sign on two states.
California needs a minimum of 800 dollars annually as LLC franchise fee, irrespective of the amount of money your LLC makes. Unless you have employees, office, or inventory in California, then there is no need to create an LLC there.
In New York, LLC publication must be done, meaning that you must place an announcement of your new LLC in two newspapers over six weeks. Cost: usually between 1,000 and 2,000 dollars, and that is just to get the privilege to make people in your neighborhood aware of your existence. In the case of a remote-owned LLC for Non-Residents, that is wasting money.
Tax Side Most Guides Bypass: Form 5472 and the IRS.
This is where most of the non-resident founders fail, so make note.
LLCs are by default pass-through entities. This is usually an indication that the LLC is not taxed on federal income tax; the gains are passed through to the owner who must record them as an individual. You will have little or no US federal income tax liability at all when you are not a resident and have no US trade or business activity related to real US operations.
However, no tax owed does not mean no paperwork owed. The twist here is that every foreign-owned single-member LLC must submit an IRS Form 5472, with an attached document entitled a pro forma Form 1120, annually, even when it is not earning any income, is not carrying out any activity, and is not making a profit.
This is no ordinary tax return. It’s an information return. It enables the Internal Revenue Service (IRS) to maintain a track of dealings between you, the overseas proprietor and your LLC, including transfers, loans or capital advances. Investing your own LLC, even the initial funding of 500 dollars, is considered a reportable transaction.
The penalty, as specified in the instructions to Form 5472, begins at 25,000 per form, per year, for failure to complete this filing. Unless you attend to IRS notices, it can go as high as it wishes, there is no ceiling, and there is no statute of limitations to protect you.
It is due on April 15 annually, although it can be automatically extended until October 15 by filing Form 7004 on time. This one needs to be mailed or faxed to a special IRS address to foreign-owned entities; e-filing is not allowed.
The other tax jargon to familiarize yourself with: the effectively connected income (ECI). In case the income of your LLC is actually related to a US trade or business (that is to say, actual activity occurring on US soil), then this income can be taxed, with a withholding rate of 30%, but this can be reduced by tax treaties between the US and your country of origin. The majority of online businesses that operate totally outside the US and sell to the US market, without having business operations in the US, tend not to be caught in this ECI trap.
The BOI Reporting Update You Should Know.
If you’ve read older articles regarding LLC for non-residents, you’ve likely encountered warnings about something called BOI reporting (Beneficial Ownership Information) under the Corporate Transparency Act.
As of 2026, the current situation is as follows: the requirement is revoked for domestic entities. FinCEN says all entities created within the U.S. are exempt from BOI reporting, including LLCs that are owned 100 percent by non-residents. Unlike forming a new LLC in the US, the requirement currently applies only to foreign entities registering to do business in the US.
That’s good news. However, the rule may have changed in the past and may change in the future, so don’t take this for granted the next time you read it.
Opening a US Bank Account From Abroad
This was a process that involved a flight to the United States and a face-to-face meeting with a bank teller a few years ago. Not anymore.
Nowadays online first business banks are the ones who rule the roost. The companies listed above: Mercury, Wise Business, and Relay, all accept applications from LLC for non-residents and handle everything remotely (no flight, no visit needed).
The approval process is usually most streamlined with these platforms for Wyoming and Delaware LLCs, as those entities are seen regularly and compliance teams are familiar with the structure. Some rare states such as New Mexico get a few additional verification questions just because they are not seen as often.
The documents usually requested include your LLC formation paperwork, the IRS confirmation letter for your EIN, and a valid passport. The time for approval depends on the factors, but many founders say they get approved in a few business days to a couple of weeks.
Forming Your LLC: The Actual Steps
Once you’ve picked a state, the process itself is fairly mechanical:
- Choose a unique name for an LLC and check the name’s availability on that state’s Secretary of State website.
- Appoint a registered agent in your formation state (required by law and typically costs $50 to $125 per year).
- Submit your Articles of Organization to the State and pay the filing fee.
- Apply for an EIN with the IRS. Even without an SSN, there is a way for the non-resident to get one (usually via telephone or fax, but not the faster online option).
- Write an operating agreement, which defines the operation of the LLC, even if you are the sole owner.
- Open your US bank account after you receive the confirmation of your EIN.
In Wyoming and New Mexico, filings usually take 1-2 business days. Delaware typically takes three to five. The EIN is the slow part. Without a Social Security Number, the EIN can take up to 4-6 weeks to process from the IRS, but you can technically start operating your LLC while waiting.
Final Verdict: Which State Wins?
If you’ve read this far, here is the quick version.
Running a business with no U.S. presence (no U.S. office, no U.S. warehouse, no U.S. employees)? For the vast majority of non-resident founders, Wyoming is the answer: low fees, strong privacy and smooth banking.
Thinking about fundraising from investors in the United States or going public? Delaware is worth its premium price tag.
Looking for the least expensive option in the long run, and don’t mind a bit of an inconvenience at the bank? New Mexico is a fit for that very need.
Do you plan to establish a physical footprint in the US at some point in the future: warehouse, employees, office? You may save yourself from double signing up later by picking Texas or Florida.
There is no “best state for LLC for non-residents” that is going to work for everyone. However, for the vast majority of freelancers, consultants, e-commerce merchants and online business owners who are reading this, Wyoming meets all the criteria that matter: low cost, strong privacy, clean taxes, and banks already have trust with Wyoming.
If you are looking to explore the world of digital nomads and finding out the best destinations (with limited taxes and untalented fun), don’t forget to explore our blog.
