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Updated for 2026 · Compare all 50 states

Best State To Start An LLC

Compare Wyoming, Delaware, Florida, Texas, Nevada, and more to find the best LLC state for taxes, privacy, fees, and business growth.

Compare LLC States Start Your LLC

Trusted by founders · Beginner-friendly · No-pressure comparison

50
States Compared
$0
Lowest Annual Fee
WY
Top Privacy
DE
Top for Startups
The Quick Answer

What Is The Best State To Start An LLC?

There's no one-size-fits-all answer — the right state depends on your situation.

Where you live

Most small businesses should form in their home state to avoid double fees.

Taxes & fees

Some states have no income tax but higher annual reports — math matters.

Privacy needs

Wyoming and New Mexico hide member names; Florida lists them publicly.

Online vs local

Online businesses have flexibility; local businesses are tied to their state.

Asset protection

Wyoming and Nevada have the strongest charging-order protections.

Growth plans

Raising VC money? Delaware. Bootstrapping online? Wyoming.

State by State

Best LLC States Overview

The five states that come up most often for LLC formation — and what each is really good for.

🏔️$60/yr

Wyoming LLC

Best for: Privacy & online businesses

No state income tax
Strong privacy laws
Low $60 annual fee
Need registered agent
Foreign filing if you live elsewhere
Privacy: Excellent
Tax: Excellent
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🏛️$300/yr

Delaware LLC

Best for: Funded startups & investors

Trusted Court of Chancery
Investor-friendly
Flexible LLC law
$300 annual franchise tax
Less privacy than Wyoming
Privacy: Good
Tax: Good
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🌴$138.75/yr

Florida LLC

Best for: Local Florida businesses

No state income tax
Booming economy
Simple filing
$138.75 annual report
Members listed publicly
Privacy: Low
Tax: Excellent
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🤠$0 (under threshold)/yr

Texas LLC

Best for: Texas-based operators

No state income tax
Pro-business climate
Large economy
Franchise tax over $1.23M revenue
$300 formation fee
Privacy: Medium
Tax: Very Good
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🎰$350+/yr

Nevada LLC

Best for: Asset protection

No state income tax
Strong asset protection
No info sharing with IRS
High $350+ annual fees
More expensive overall
Privacy: Very Good
Tax: Excellent
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Founder Favorite

Why People Choose Wyoming

Wyoming has quietly become the #1 LLC state for online businesses, privacy-focused founders, and non-US residents. Here's why it keeps winning.

Strong privacy
Member and manager names stay off public records.
Low annual fees
Just $60 per year to stay in good standing.
Best-in-class asset protection
Charging order is the exclusive remedy for creditors.
No state income tax
Keep more of what you earn from your LLC.
Loved by online businesses
Ecommerce, SaaS, agencies, and creators favor Wyoming.
Anonymous LLC appeal
True privacy for founders who value discretion.
Start A Wyoming LLC
🏔️
Wyoming Snapshot
Formation
$100
Annual Fee
$60
State Tax
0%
Privacy
★★★★★
Asset Protection
★★★★★
Online Biz Fit
★★★★★
🏛️
Delaware Snapshot
Formation
$110
Annual Tax
$300
VC Friendly
★★★★★
Privacy
★★★☆☆
Local Biz Fit
★★☆☆☆
Court System
★★★★★
Investor Favorite

Why Delaware Is Popular

Delaware is the legal home of more than 65% of Fortune 500 companies. It's a powerhouse — but it's not always right for everyone.

✓ Great For
  • • Startups raising venture capital
  • • Companies with sophisticated legal needs
  • • Businesses planning to IPO
  • • Investor familiarity & trust
⚠ Not Ideal For
  • • Small local businesses
  • • Solo founders with no funding plans
  • • Anyone living and operating outside Delaware
Compare Delaware LLC Options
International Founders

Best State For Non-US Residents

You don't need to live in the US — or even visit — to form an LLC. Here's where international founders go.

🏔️

Wyoming

Best overall for privacy + cost

  • No US visit required
  • Strong banking acceptance
  • Anonymous filing
🌵

New Mexico

Cheapest with anonymity

  • No annual report
  • Lowest ongoing cost
  • True anonymous LLC
🏛️

Delaware

Best for credibility

  • Trusted by US banks
  • Investor recognition
  • Familiar to Stripe/Mercury
US Banking
Mercury & Wise accept non-resident LLCs
EIN Setup
Get your tax ID without an SSN
Registered Agent
Required in every state
Privacy
Wyoming & NM keep your name off records
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Online & Ecommerce

Best State For Online Businesses

Digital businesses have flexibility most local businesses don't — here's how to use it.

Amazon Sellers
Wyoming for privacy + no income tax.
Digital Nomads
WY or NM if you have no fixed US address.
Affiliate Marketers
Wyoming wins on fees + privacy.
Agencies
Form in your state of operation, usually.
Creators
Wyoming for anonymity from public-facing brand.
Remote SaaS
Delaware if raising, Wyoming if bootstrapping.
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Side By Side

LLC Cost Comparison

The real numbers. No fluff.

StateFormationAnnual FeeFranchise TaxPrivacyFiling
Wyoming$100$60NoneExcellentEasy
Delaware$110$300$300 flatGoodEasy
Florida$125$138.75NoneLowEasy
Texas$300$0–variesOver $1.23M revMediumMedium
Nevada$425$350+NoneVery GoodMedium
See LLC Pricing
Avoid These

Common LLC Mistakes

The traps that cost first-time founders thousands.

Forming in Delaware unnecessarily
If you're not raising VC money, Delaware adds cost and complexity with zero real benefit.
Ignoring home state rules
Operating from California with a Wyoming LLC? You still have to register and pay CA's $800 minimum.
Forgetting annual reports
Miss a filing and your LLC loses good standing — or gets dissolved entirely.
Using your personal address
Your home address goes on public record forever. Use a registered agent or business address.
Choosing cheapest over best fit
$40 formation in Kentucky doesn't help if it costs you in taxes and compliance later.
Skipping the operating agreement
Even single-member LLCs need one to maintain liability protection in court.
Step By Step

How To Start Your LLC

Seven steps from idea to in-business. No legal jargon.

01
Step 01
Choose Your State
Pick based on where you operate, taxes, and privacy needs.
02
Step 02
Pick A Business Name
Search availability and reserve your unique LLC name.
03
Step 03
Choose A Registered Agent
Required in every state to receive legal documents.
04
Step 04
File Formation Documents
Submit Articles of Organization to the state.
05
Step 05
Get Your EIN
Free federal tax ID needed for banking and taxes.
06
Step 06
Open A Business Bank Account
Separate finances to protect your liability shield.
07
Step 07
Stay Compliant
File annual reports and maintain your good standing.
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FAQ

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