State Comparison Guide

Wyoming vs New Mexico LLC:
Privacy on a Budget

Two states offer the absolute best privacy for non-US residents. But New Mexico charges $0 in annual fees, while Wyoming has a stronger brand. Here's how to choose.

The Face-off

Filing Fees, Annual Maintenance & Privacy

MOST AFFORDABLE
New Mexico
$0 / year

Annual State Maintenance

Zero Annual Fees
New Mexico has no annual report fees and no franchise tax. You only pay for your Registered Agent.
Total Anonymity
Like Wyoming, New Mexico DOES NOT require you to list directors or managers in public databases.
Zero State Income Tax
No corporate or personal income tax on a state level.
Lesser Known
Not as famous as Wyoming in the corporate world, slight friction explaining NM occasionally.
BEST REPUTATION
Wyoming
$160 / year

Annual State Maintenance

The 'Gold Standard'
Considered the best state for small businesses. Recognized globally.
Extremely Strong Asset Protection
Long legal history of protecting members from "charging orders".
Small Annual Fee
A minimal ~$160 annual fee is required every single year to stay compliant.

* Please note: The amounts above are the mandatory state fees. We charge a minimal $170/year filing fee for the IRS return (Forms 1120/5472) on top of the state fee to keep your LLC 100% compliant and provide ongoing support throughout the year.

Industry Specifics

New Mexico vs Wyoming for E-Commerce & Freelancers

For internet companies testing the waters (dropshipping on a massive budget, digital agencies, consulting), New Mexico is a brilliant, sleeper-hit state. Because New Mexico charges $0 for an annual report, your only yearly maintenance cost is renewing your registered agent (usually $49-$99). This makes it the most affordable US LLC in existence. However, if you prefer the established pedigree of a widely recognized business haven and don't mind a small $160/year fee, Wyoming's asset protection laws are unmatched.

Taxation

Do I have to pay US Taxes? (ETBUS Rules)

This is the most common question we get: "If I choose New Mexico or Wyoming, do I pay zero taxes?"

The "No physical presence" Rule (Not ETBUS)

For a non-US resident running an online business (dropshipping, software, freelancing, agency), your LLC is considered a "Disregarded Entity" by the IRS. As long as you have no physical presence in the US (no US employees, no physical office, no dependent agents operating in the US), you are classed as Not Engaged in a Trade or Business in the US (No ETBUS).

This means you owe 0% US Federal Income Tax on your business profits, regardless of whether you form in New Mexico or Wyoming. You only pay the Annual State Maintenance Fees listed above, and file Forms 1120 and 5472 every year (which we can help you with).

Both states offer the exact same tax haven strategy for non-US residents under the ETBUS classification. Since neither state has a state-level income tax on out-of-state operators, they are functionally identical for your tax bill: $0.

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