Choosing between a New Mexico vs Wyoming LLC is one of the first decisions non-US residents face when starting a US business — and here is the short answer: pick New Mexico if you want the lowest lifetime cost and maximum privacy with zero annual paperwork, and pick Wyoming if you want a more widely recognized name and slightly stronger asset-protection laws. Both are excellent choices, neither requires you to live in or visit the United States, and both keep your personal name off the public record.
At LLC Station we form companies in both states every week, so this guide is based on what actually happens after formation — not just what the state websites say. Let’s break down the real differences.
New Mexico vs Wyoming LLC: quick comparison
| Factor | New Mexico LLC | Wyoming LLC |
|---|---|---|
| Annual report fee | None — $0 forever | $60 minimum, every year |
| State income tax (non-resident) | None | None |
| Owner privacy | Excellent — owners not filed with the state | Excellent — owners not listed publicly |
| Annual paperwork | None | Annual report required |
| Reputation with banks | Widely accepted | Very widely recognized |
| Asset-protection statutes | Strong | Strongest in the US |
| Best for | Lowest cost & privacy | Recognition & protection |
Does your state choice even matter for non-residents?
Here is something most formation websites won’t tell you: for a typical non-resident running an online business, your state of formation matters far less than you think. Whether you form in New Mexico or Wyoming, your federal tax obligations to the IRS are identical, your ability to open Mercury or Relay is the same, and Stripe treats both equally.
What the state choice does affect is your ongoing cost, your privacy, and your annual paperwork. Those are real differences worth understanding — so let’s go through the seven that matter.
The 7 key differences between a New Mexico and Wyoming LLC
1. Annual fees: New Mexico is free, Wyoming is not
This is the single biggest practical difference. A New Mexico LLC has no annual report and no annual state fee — once it’s formed, you pay the state nothing to keep it alive, ever. A Wyoming LLC requires an annual report with a minimum fee of $60 each year (based on assets located in Wyoming; most online businesses pay the minimum).
Over five years, that’s roughly $300 in Wyoming state fees versus $0 in New Mexico. For a lean online business, New Mexico quietly wins on cost.
2. Privacy: both excellent, with a small edge to New Mexico
Both states are famous for privacy and neither publishes your name in the public business record. New Mexico is arguably the most private state in the country — it does not collect member or manager names at all at formation. Wyoming keeps owners off the public listing too, but collects slightly more internal information. For practical purposes, both protect your identity well.
3. Formation cost
New Mexico’s state filing fee is lower than Wyoming’s one-time formation fee. The difference is small and one-time, so it shouldn’t drive your decision — but combined with the $0 annual fee, New Mexico is the cheaper state across the full life of the company.
4. Reputation with banks and payment processors
Wyoming has been marketing itself as the “business privacy state” for decades, so its name carries slightly more instant recognition with some banks and fintech reviewers. In our day-to-day experience, both states are accepted by Mercury, Relay, Wise, Stripe, and PayPal — we open accounts with New Mexico LLCs constantly. If recognition gives you peace of mind, Wyoming has a tiny edge; in real outcomes, the difference is negligible.
5. Annual report requirement
A New Mexico LLC has no annual report to file — ever. A Wyoming LLC must file one every year, and missing it can eventually put your company into bad standing. If you want a true “set it and forget it” company, New Mexico removes one recurring task from your calendar.
6. Asset protection
Wyoming is widely regarded as having the strongest LLC asset-protection statutes in the United States, including strong charging-order protection that even extends to single-member LLCs. New Mexico’s protections are also strong but less battle-tested. If your business carries real liability risk or significant assets, Wyoming’s statutes are a genuine advantage.
7. Ongoing maintenance burden
Because New Mexico has no annual report and no annual fee, the only recurring requirement is your registered agent. Wyoming adds the yearly report on top of that. Less maintenance means fewer ways to accidentally fall out of good standing — a real benefit if you’re managing the company from abroad.
Which state should you choose?
Here’s the simple decision framework we give our own clients:
- Choose New Mexico if: you run an online business (e-commerce, freelancing, SaaS, dropshipping), you want the lowest possible lifetime cost, and you value maximum privacy with zero annual paperwork. This fits the majority of non-resident founders.
- Choose Wyoming if: you want the most recognized privacy-state name, you’re holding significant assets, or you specifically want the strongest asset-protection statutes in the country.
For most non-residents starting their first US company, New Mexico is the practical default — cheaper to keep alive and just as functional for banking and payments. Wyoming is the upgrade for those who prioritize protection and reputation.
What about Delaware?
Founders often ask why we don’t push Delaware. Delaware is excellent for venture-backed startups that will raise money from US investors — but for a non-resident running an online business, it adds a yearly franchise tax and more paperwork without real benefit. Unless you’re raising venture capital, New Mexico or Wyoming will serve you better and cheaper.
Important: state choice does not change your IRS obligations
No matter which state you choose, a foreign-owned US LLC has the same federal requirements. A single-member foreign-owned LLC must file Form 5472 with a pro-forma Form 1120 every year, and the penalty for missing it starts at $25,000 — regardless of whether you formed in New Mexico or Wyoming. You can read the IRS rules on Form 5472 here. If this sounds complicated, our tax filing service handles it for you.
Frequently asked questions
Is a New Mexico or Wyoming LLC better for non-residents?
For most non-residents, New Mexico is better because it has no annual report and no annual fee, keeping lifetime costs lowest. Wyoming is better if you want the strongest asset-protection laws or maximum name recognition.
Do I need to visit the US to form an LLC in either state?
No. You can form a New Mexico or Wyoming LLC entirely online from your home country, with no travel, no SSN, and no US visit required.
Can I open a US bank account with either state’s LLC?
Yes. Both New Mexico and Wyoming LLCs are accepted by US business banks like Mercury and Relay. See our guide on Mercury vs Wise vs Relay to choose the right one.
Which state is more private?
Both are highly private and neither lists your name in the public record. New Mexico has a slight edge because it does not collect member names at formation at all.
Do New Mexico and Wyoming LLCs pay state income tax?
Neither state charges income tax on a non-resident’s online business income that isn’t sourced to that state. Your main obligations are federal, not state.
Ready to form your US LLC?
Whether you choose New Mexico or Wyoming, LLC Station forms your company remotely — EIN, registered agent, US address, and banking guidance included. We’re a registered US company (Midou Oudina LLC) and we handle everything in English so you don’t have to navigate the paperwork alone.