US LLC for non-residents: which state?
New Mexico is the cheapest state for an LLC, at least £113 in year 1. Delaware costs at least £435. Every state has the same federal filing for foreign owners.
| Country | Minimum, year 1 | Per year after | Typical year 1 | Corporation tax | Setup |
|---|---|---|---|---|---|
| New Mexico, USA | £113 | £75 | £726 | 21% | Fully remote |
| Wyoming, USA | £144 | £67 | £742 | 21% | Fully remote |
| Texas, USA | £271 | £40 | £956 | 21% | Fully remote |
| Florida, USA | £238 | £143 | £887 | 21% | Fully remote |
| Delaware, USA | £435 | £350 | £1,220 | 21% | Fully remote |
| Nevada, USA | £367 | £310 | £1,052 | 21% | Fully remote |
What every state needs
An LLC needs a registered agent in its state. A single-member LLC with a foreign owner files Form 5472 with a pro forma 1120 every year, and missing it costs a $25,000 penalty. You also need an EIN, the federal tax number, which takes 2 to 6 weeks for foreign owners. Mercury, Relay and Wise open accounts once you have it.
Which state for what
- Wyoming: low fees and a short annual report. A common choice for e-commerce and holding companies.
- New Mexico: the lowest fees, with no annual report.
- Delaware: costs more each year, but it is what US investors expect if you plan to raise money as a C-Corp.
- Texas and Florida: low running costs, and the natural choice if you trade in either state.
- Nevada: an annual list and business licence make it the dearest to run after Delaware.
From cheapest to dearest in year 1: New Mexico £113, Wyoming £144, Florida £238, Texas £271, Nevada £367 and Delaware £435.
Tax
An LLC pays no US entity tax. Its profit is taxed on its owner. A non-resident whose LLC has no US trade or business often owes no US income tax, but the profit is still taxed where you live, and some countries treat an LLC differently from the US. Check how yours does before you form one.
Questions
Which US state is cheapest for an LLC?
New Mexico in year 1, at least £113. Texas after that, at least £40 a year.
Do I need to live in the US?
No. You can form and run an LLC from abroad through a registered agent.
What is Form 5472?
A yearly IRS filing for an LLC with a foreign owner. It is free to file yourself, and missing it costs a $25,000 penalty.
Is Delaware worth the extra cost?
Only if you plan to raise money from US investors, who expect a Delaware C-Corp.
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