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