Best State to Form an LLC: Take the Free Quiz
Should you form in your home state — or is Wyoming, Delaware, or Nevada a better fit? Answer 5 quick questions and get a personalized recommendation based on costs, taxes, privacy, and your business type.
Where do you live?
This helps us determine if you should form in your home state or elsewhere.
Frequently Asked Questions
What is the best state to form an LLC?
For most people, the best state to form an LLC is your home state. It's simpler, cheaper, and avoids the need for foreign registration. However, Wyoming, Delaware, and Nevada are popular alternatives for privacy, tax benefits, or specialized legal protections. Take the quiz above to get a personalized recommendation.
Should I form my LLC in Wyoming or Delaware?
Wyoming is best for small business owners seeking low fees ($100 filing, $60/yr annual report), strong privacy, and no state income or franchise tax. Delaware is better for companies seeking investors or planning to go public, thanks to its business-friendly Court of Chancery — but it charges $300/yr for its annual report.
Is it worth forming an LLC in a different state?
Only if you don't operate in your home state or have specific needs like ownership privacy or holding company benefits. If you form out-of-state but do business in your home state, you'll need to register as a "foreign LLC" there — meaning you pay filing and annual fees in both states.
What are the cheapest states to form an LLC?
Kentucky ($40), Arizona ($50), Colorado ($50), and Mississippi ($50) have the lowest filing fees. But ongoing costs matter more — annual reports, franchise taxes, and registered agents add up. Wyoming and New Mexico are among the cheapest overall when you factor in total annual costs.
Which states offer anonymous LLC ownership?
Wyoming, Nevada, New Mexico, and Delaware all allow some form of anonymous LLC ownership where your name doesn't appear in public records. Wyoming and New Mexico offer the strongest privacy protections at the lowest cost.