For most non-resident founders, the choice comes down to three states: Wyoming, Delaware, and New Mexico. Each one has trade-offs. Here’s how we recommend picking, based on what we’ve seen across more than a thousand client setups.
Wyoming — the default for solo founders
Wyoming has a $60 annual report fee, no state income tax, and strong privacy rules. It’s the state we recommend for most freelancers, consultants, and solo founders who just want to operate cleanly and cheaply.
- $60 annual fee — lowest of the three
- No state income tax
- Owner names are not public
- Approved in about 1 business day
Delaware — pick this if you’ll raise money
Delaware is the home of US corporate law. If you plan to raise venture capital, almost every US investor will expect a Delaware C-corp or LLC. It’s overkill for solo founders, but standard for startups with outside funding.
- $300 annual franchise tax (more than Wyoming)
- Court of Chancery handles business disputes
- Standard for VC-backed companies
New Mexico — the cheapest state to maintain
New Mexico has no annual report and no annual fee for LLCs. It’s the absolute lowest-cost option to keep alive year after year. The trade-off: less privacy than Wyoming, and a less recognized brand than Delaware.
- $0 annual report fee
- One-time filing fee, then nothing
- Best for side projects you want to keep open at minimum cost
Our recommendation
For 80% of solo founders, Wyoming is the right answer. For VC-backed startups, Delaware. For low-maintenance side projects you want to preserve cheaply, New Mexico. During Regiwise signup, we’ll ask a few questions and recommend the best one for your situation.
