Wyoming vs New Mexico LLC for Non-Residents

Wyoming and New Mexico are the two most-discussed states for non-resident founders forming a US LLC, mostly because of low cost and privacy. Here is how they actually differ, and where the differences stop mattering.

Why these two states come up so often

If you have spent any time researching where to form a US LLC as a non-resident, you have almost certainly landed on Wyoming and New Mexico. Both states are popular for the same basic reasons: no state income tax on LLCs with no in-state activity, relatively simple filing requirements, and formation processes that do not require you to visit the US or hold an SSN. Beyond that, the two states diverge in ways that matter mostly for cost and privacy, not for what your LLC can legally do.

Formation cost, compared

Both states charge a one-time filing fee to create the LLC, and both require a registered agent inside the state, which is typically a paid service since you will not have a physical address there yourself. The real difference is in ongoing costs.

Because New Mexico does not require an annual report or an annual state fee to keep the LLC in good standing, its lifetime cost can end up lower than Wyoming's over several years, even if the initial filing fees are similar. Wyoming's annual report fee is modest, but it is a recurring cost and a recurring deadline you have to track. Always check the current fee schedule on the relevant Secretary of State website before you file, since these amounts do get adjusted.

Privacy, compared

This is where New Mexico usually wins the conversation. Neither state requires you to list LLC members or managers by name on the public formation document if you use an organizer service, but the ongoing disclosure requirements differ:

• Wyoming requires an annual report that asks for the names of members or managers in most cases, and while the state itself does not publish a full ownership registry, some information can surface through that filing over time.
• New Mexico has no annual report requirement whatsoever, which means there is no recurring public filing where ownership details could appear after formation. For founders who want the least paper trail at the state level, this is the more private option.

Two things are worth stressing here. First, privacy at the state level is not the same as privacy from the IRS. Your LLC still has federal obligations that require disclosing beneficial ownership to the US government, regardless of which state you pick. Second, most non-resident founders are not trying to hide from anyone, they simply prefer not to have personal details searchable in random state databases. Both states are reasonable choices on that front, New Mexico is just slightly stronger.

Banking and everyday practicality

Wyoming is, by a wide margin, the more common jurisdiction banks and fintechs see from foreign-owned LLCs. Providers like Mercury, Wise, and Relay onboard Wyoming LLCs constantly and their compliance teams are very familiar with the structure. New Mexico LLCs are far less common in that flow. This does not mean New Mexico LLCs get rejected, but it can occasionally mean more questions during account opening simply because the reviewer sees it less often. If a fast, uneventful bank account opening matters more to you than the extra privacy, that tips things toward Wyoming.

What does not change between the two states

This is the part founders sometimes miss. If your LLC is foreign-owned and has no US owners, it is treated by default as a disregarded entity for tax purposes, and it must file Form 5472 along with a pro-forma Form 1120 every year, even if the business had zero income and zero activity. This applies whether you form in Wyoming, New Mexico, or any other state. Missing this filing carries a penalty of 25,000 dollars per violation, which is one of the more painful surprises for founders who assumed 'no income, no filing needed.' It does not.

You also still need an EIN either way, applied for using Form SS-4, which non-residents can typically submit by fax or mail without a Social Security Number. An ITIN is a separate matter. It does not require a visa and it exists specifically for people who need a US taxpayer identification number but are not eligible for an SSN. You may need one later depending on your tax situation, but it is not a prerequisite for getting an EIN or opening a bank account in most cases.

Which one should you actually pick

If cost predictability and banking familiarity matter most, Wyoming is the safer default, and it is why it remains the most common choice among non-resident founders. If you specifically want to minimize ongoing public filings and are comfortable with a jurisdiction that fintechs see less often, New Mexico is a legitimate and slightly cheaper long-term option. Neither choice is wrong, and neither one changes your federal filing obligations, your need for an EIN, or your eventual need for a US business bank account. Founders Credit sets up the LLC, EIN, ITIN where needed, and a US business bank account and cards for non-resident founders end to end, remotely, so you do not have to weigh every one of these state-level tradeoffs alone.

Glossary

Registered agent: a person or company with a physical address in the formation state, authorized to receive legal and state mail on the LLC's behalf.

Disregarded entity: the default IRS tax treatment for a single-member LLC, meaning the LLC's activity is reported as if it belongs directly to the owner, rather than the LLC being taxed separately.

Form 5472: an information return required annually for foreign-owned single-member LLCs, filed alongside a pro-forma Form 1120, reporting transactions between the LLC and its foreign owner. It does not calculate tax owed, it reports activity.

EIN (Employer Identification Number): the federal tax ID number for a business, required for banking, tax filing, and most contracts, obtainable by non-residents via Form SS-4.

ITIN (Individual Taxpayer Identification Number): a tax ID for individuals not eligible for a Social Security Number, unrelated to visa status.

Frequently asked questions