51 states · 2026
The best state to form an LLC
Checked November 4, 2026 · How we score
| # | State | Non-resident | Filing fee | Annual fee | Income tax | Anonymous |
|---|---|---|---|---|---|---|
| 1 | WYWyoming Foreign and non-resident founders | 9/10 | $100 | $60 | 0% | Yes |
| 2 | NMNew Mexico Foreign founders who want privacy and low upkeep | 8/10 | $50 | $0 | 5.9% | Yes |
| 3 | DEDelaware Startups raising venture capital (Delaware C-corp) | 8/10 | $110 | $400 | 6.6% | Yes |
| 4 | MTMontana Founders who want the cheapest LLC in the US | 6/10 | $35 | $20 | 5.65% | No |
| 5 | FLFlorida Founders who live in Florida and want no income tax | 6/10 | $125 | $138.75 | 0% | No |
| 6 | NVNevada Holding companies with assets in Nevada | 6/10 | $425 | $350 | 0% | No |
| 7 | AZArizona Founders who want a cheap, low-upkeep LLC | 5/10 | $50 | $0 | 2.5% | No |
| 8 | MOMissouri Low-cost LLCs with no ongoing reports | 5/10 | $50 | $0 | 4.7% | Yes |
| 9 | KYKentucky Founders who want a very cheap filing | 5/10 | $40 | $15 | 3.5% | No |
| 10 | COColorado Startups and tech founders in the Mountain West | 5/10 | $50 | $25 | 4.4% | No |
| 11 | UTUtah Utah-based startups | 5/10 | $59 | $18 | 4.5% | No |
| 12 | IDIdaho Remote workers relocating to the Mountain West | 5/10 | $100 | $0 | 5.3% | No |
| 13 | NHNew Hampshire New Hampshire residents who want no sales or wage tax | 5/10 | $100 | $100 | 0% | No |
| 14 | SDSouth Dakota Trust and asset-protection businesses | 5/10 | $150 | $55 | 0% | No |
| 15 | TXTexas Texas-based businesses | 5/10 | $300 | $0 | 0% | No |
| 16 | MSMississippi Mississippi-based small businesses | 4/10 | $50 | $0 | 4% | No |
| 17 | IAIowa Midwestern small businesses | 4/10 | $50 | $15 | 3.8% | No |
| 18 | MIMichigan Michigan-based small businesses | 4/10 | $50 | $25 | 4.25% | No |
| 19 | OHOhio Ohio-based small businesses | 4/10 | $99 | $0 | 2.75% | No |
| 20 | SCSouth Carolina South Carolina-based businesses | 4/10 | $110 | $0 | 6% | No |
| 21 | INIndiana Midwestern businesses | 4/10 | $95 | $15.5 | 2.95% | No |
| 22 | OKOklahoma Oklahoma-based small businesses | 4/10 | $100 | $25 | 4.5% | No |
| 23 | WVWest Virginia West Virginia-based small businesses | 4/10 | $100 | $25 | 4.82% | No |
| 24 | VAVirginia Virginia-based businesses | 4/10 | $100 | $50 | 5.75% | No |
| 25 | WIWisconsin Wisconsin-based businesses | 4/10 | $130 | $25 | 7.65% | No |
| 26 | GAGeorgia Founders based in the Southeast | 4/10 | $110 | $60 | 5.19% | No |
| 27 | NDNorth Dakota North Dakota-based businesses | 4/10 | $135 | $50 | 2.5% | No |
| 28 | ARArkansas Arkansas-based small businesses | 4/10 | $45 | $150 | 3.9% | No |
| 29 | KSKansas Midwestern small businesses | 4/10 | $160 | $50 | 5.58% | No |
| 30 | ALAlabama Founders physically based in Alabama | 4/10 | $200 | $50 | 5% | No |
| 31 | MEMaine Maine-based small businesses | 4/10 | $175 | $85 | 7.15% | No |
| 32 | AKAlaska Alaska-based operators and fishing or resource businesses | 4/10 | $250 | $50 | 0% | No |
| 33 | TNTennessee Tennessee-based businesses that want no personal income tax | 4/10 | $300 | $300 | 0% | No |
| 34 | HIHawaii Hawaii-based tourism and local services | 3/10 | $50 | $15 | 11% | No |
| 35 | NENebraska Nebraska-based small businesses | 3/10 | $100 | $6.5 | 4.55% | No |
| 36 | PAPennsylvania Pennsylvania-based businesses | 3/10 | $125 | $7 | 3.07% | No |
| 37 | MNMinnesota Minnesota-based businesses | 3/10 | $155 | $0 | 9.85% | No |
| 38 | LALouisiana Louisiana-based oil, gas and hospitality businesses | 3/10 | $125 | $35 | 3% | No |
| 39 | NJNew Jersey New Jersey-based businesses | 3/10 | $100 | $75 | 10.75% | No |
| 40 | CTConnecticut Connecticut-based businesses | 3/10 | $120 | $80 | 6.99% | No |
| 41 | OROregon Oregon-based businesses | 3/10 | $100 | $100 | 9.9% | No |
| 42 | RIRhode Island Rhode Island-based small businesses | 3/10 | $150 | $50 | 5.99% | No |
| 43 | VTVermont Vermont-based small businesses | 3/10 | $155 | $45 | 8.75% | No |
| 44 | ILIllinois Illinois-based businesses | 3/10 | $150 | $75 | 4.95% | No |
| 45 | DCDistrict of Columbia Government contractors and consultants | 3/10 | $99 | $150 | 10.75% | No |
| 46 | WAWashington Washington-based software and tech companies | 3/10 | $200 | $70 | 0% | No |
| 47 | NCNorth Carolina North Carolina-based businesses | 3/10 | $125 | $200 | 3.99% | No |
| 48 | MDMaryland Maryland-based businesses | 3/10 | $100 | $300 | 6.5% | No |
| 49 | NYNew York New York-based businesses | 2/10 | $200 | $4.5 | 10.9% | No |
| 50 | CACalifornia Businesses physically operating in California (required regardless of where you form) | 2/10 | $70 | $800 | 13.3% | No |
| 51 | MAMassachusetts Biotech and tech founders based in Boston | 2/10 | $500 | $500 | 9% | No |
Questions people ask
What is the best state to form an LLC in?
Your home state, if you live in the US and do business there. Otherwise Wyoming (cheap, private, no state income tax), New Mexico (cheapest, no annual report) or Delaware (for VC-backed startups that will convert to a C-corp).
Is Wyoming or Delaware better for an LLC?
Wyoming is cheaper ($60 a year vs Delaware's $400 LLC tax from 2026) and better for small LLCs and non-residents. Delaware's Court of Chancery and investor familiarity make it the default for venture-backed C-corps.
Should a non-US resident form an LLC in Wyoming?
Wyoming is the most popular choice for non-residents: $100 to file, $60 a year, anonymous ownership and no state income tax. A single-member LLC with no US-source income generally owes no US income tax but must file Form 5472.
Keep reading
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.