LLC States – Which State Is Best for Your US LLC?

1. Florida – Popular but Not Ideal for Foreigners

Florida is a strong economic state with a high quality of life. Many businesses are registered there – but for foreign founders, Florida has several drawbacks:

• Higher formation and maintenance fees (e.g., Annual Report & State Fee)

• No anonymity – owner details must be disclosed

• More complex tax regulations for non-US residents

• A physical address in the state is often required

Conclusion: Florida is better suited for local entrepreneurs with a physical presence in the US, but not ideal for digital founders from abroad.

Delaware is known as a classic incorporation state. Many large US corporations are based there. However, this reputation brings little benefit for small business owners:

• Franchise Tax and additional yearly fees

• No real advantage for solo entrepreneurs or online service providers

• Low anonymity – owner information is publicly accessible

• Extra costs for registered agent and mail forwarding

Conclusion: Delaware might be interesting for publicly traded companies – but for digital solo entrepreneurs, it is unnecessarily expensive and impractical.

New Mexico is one of the cheapest states to form an LLC. It is especially valued for its anonymity – no owner information needs to be published. However, there are some downsides:

• No annual report required – saving time and money

• Sometimes slow processing and outdated administrative systems

• Limited digital formation options

• Weak support for international founders

Conclusion: If anonymity is a top priority, New Mexico is an affordable option – but expect compromises in speed and digital infrastructure.

Wyoming is considered the best state for LLC formation among digital entrepreneurs – and for good reason:

• Low formation and annual maintenance costs

• No state income tax

• Owner information remains private – high anonymity

• Fast, fully digital formation process

• Strong legal certainty and modern business procedures

• Ideal for e-commerce, coaching, software, services, and dropshipping

Conclusion: Wyoming combines low costs, privacy, digital processes, and tax advantages in one state. For international founders seeking a flexible, tax-free, and professionally structured LLC, Wyoming is clearly the top choice.