For most non-residents, New Mexico ($50 one-time filing, no annual fee) or Wyoming ($100 filing, $60/year minimum) offer the lowest Year-1 costs. Both allow member privacy.
State choice does not determine Stripe eligibility. According to Stripe, eligibility depends on where the business is legally registered, a US LLC qualifies regardless of state.
Banking access depends on your nationality, not your LLC’s state. According to Mercury’s prohibited-countries list (confirmed as of 2026-05-31), founders domiciled in Pakistan, Nigeria, the Philippines, Nepal, and Bangladesh cannot open a Mercury account, no matter which state their LLC is formed in.
Before choosing a state, understand your real constraints: annual costs, federal filing obligations (Form 5472 applies to most single-member foreign-owned LLCs), and which banks will accept you. Our LLC page covers the full formation process for non-residents in detail.
Quick Answer: Best State for a Non-Resident LLC in 2026
Wyoming and New Mexico are the two strongest choices for non-residents.
Wyoming charges a $100 one-time filing fee and a $60 minimum annual report fee, according to the Wyoming Secretary of State (as of 2026). Its name carries stronger recognition with US banks and payment processors.
New Mexico charges a $50 one-time filing fee with no annual report and no ongoing state fee, according to the New Mexico Secretary of State (as of 2026). This makes it the lowest Year-1 cost option, with identical federal tax treatment.
Stripe eligibility is determined by the country where the business is registered, not the state. A US LLC qualifies regardless of formation state, according to Stripe.
If you live in the US, form in your home state to avoid foreign-registration fees.
Last verified: 2026-05-31
As of 2026, non-residents forming a US LLC face two cost-competitive choices: Wyoming ($100 formation fee plus a $60 minimum annual report, per the Wyoming Secretary of State) and New Mexico ($50 formation fee, zero annual report fee, per the New Mexico Secretary of State).
Both states protect member privacy by not requiring public disclosure of member names. Neither formation state affects Stripe or Mercury eligibility those decisions are made at the federal and platform level, not the state level.
Why Non-Residents Choose a Different State Than US Residents
The foreign-registration problem does not apply to non-residents
Most online advice warns about forming an LLC in one state while living in another, that forces US residents to register as a foreign LLC in their home state, doubling fees and paperwork. Non-residents have no US home state. That double-registration problem simply does not exist for them. A founder in Lagos, Karachi, or Manila forms once, in one state, and stops there.
Privacy, not tax savings, is the real driver for non-residents
‘No state income tax’ is the most repeated selling point for Wyoming, Nevada, and South Dakota. For non-residents, it is almost irrelevant. A non-resident-owned LLC with no US-source income owes no US state or federal income tax regardless of which state it forms in. What does matter is privacy. Some states publish member names in public records.
Wyoming and New Mexico do not require public disclosure of member names useful for founders who want ownership kept off searchable databases. If you already have an LLC registered elsewhere and want to take advantage of Wyoming’s privacy protections, How to Move Your LLC to Wyoming walks through the conversion process step by step.
No state eliminates your US federal tax filing obligations
Choosing Wyoming over Delaware does not remove a single federal filing requirement. A foreign-owned single-member LLC with reportable transactions must file Form 5472 (information return for foreign-owned US corporations) plus a pro-forma Form 1120, according to the IRS regardless of state. A multi-member LLC files Form 1065 (partnership return), due March 15 with an extension to September 15, per IRS rules.
One common confusion: FBAR (FinCEN Form 114) requires US persons to report foreign financial accounts. Non-resident owners of US LLCs are not US persons FBAR does not apply to them.
On BOI (Beneficial Ownership Information reporting: according to FinCEN’s interim final rule effective March 26, 2025, US-formed LLCs are fully exempt from BOI reporting requirements. Zero filing obligation, zero penalty exposure for domestic entities.
What Non-Residents Should Prioritize When Choosing a State
Annual cost, not just formation cost
The formation fee is only one line in your real budget. Year-1 total, filing fee plus registered agent plus any annual report, is the correct comparison number. A $50 filing fee in New Mexico with no annual report beats a $100 filing fee plus a $60 annual minimum elsewhere, once you add the registered agent cost on top.
Banking compatibility by nationality
Your state choice does not determine which banks will accept you. According to Mercury‘s prohibited-countries list (confirmed 2026-05-31), Mercury prohibits founders domiciled in Pakistan, Nigeria, the Philippines, Nepal, and Bangladesh regardless of which US state the LLC is formed in.
Stripe eligibility works differently: according to Stripe, eligibility is determined by the country where the business is legally registered, not the founder’s nationality. A US LLC qualifies for Stripe whether it is formed in Wyoming or Florida.
Privacy: which states publish member names
Wyoming and New Mexico do not require public disclosure of member names. Delaware does not require it either, but carries a $300 flat annual franchise tax. If privacy matters and you want to minimize ongoing costs, New Mexico or Wyoming is the stronger choice.
Registered agent requirement in every state
Every US LLC must have a registered agent (RA) a person or service with a physical street address in the state of formation. PO boxes are not accepted in any US state. Third-party RA services typically cost $50–$150 per year; this amount must appear in your total cost calculation.
One overlooked failure point: the IRS Form SS-4 Responsible Party field must name a natural person, not an entity, since 2018. Listing another LLC in that field is the leading cause of EIN (Employer Identification Number, US business tax ID) rejection for non-residents forming multiple LLCs.
Total Year-1 Cost Table: Wyoming vs Delaware vs New Mexico vs Nevada vs Florida
No competitor, including doola, ZenBusiness, Northwest Registered Agent, Bizee, or Firstbase, publishes a complete Year-1 cost including registered agent. This table does.
| State | Formation Fee | First Annual Fee* | Registered Agent | Year-1 Total |
|---|---|---|---|---|
| Wyoming | $100 | $60 minimum | $50–$150 | $210–$310 |
| Delaware | $90 | $300 franchise tax | $50–$150 | $440–$540 |
| New Mexico | $50 | $0 | $50–$150 | $100–$200 |
| Nevada | $425 | $350 | $50–$150 | $825–$925 |
| Florida | $125 | $138.75 | $50–$150 | $313.75–$413.75 |
Last verified: 2026-05-31. State fees per official Secretary of State sources. Registered agent market range: $50–$150/year.
Warning — Delaware hidden cost: Delaware’s $300 annual franchise tax applies every year, regardless of revenue or business activity. Many services that recommend Delaware for non-residents omit this. It is not a one-time fee.
New Mexico has the lowest Year-1 cost of the five states. Its $50 formation fee and zero annual fees make it the most affordable starting point for non-residents watching early costs.
However, New Mexico’s lack of an annual report does not affect Stripe or Mercury eligibility. Both platforms make decisions at the federal level, your EIN and LLC registration matter, not your state’s reporting schedule.
Nevada’s $825–$925 Year-1 total is the highest of the five states. That cost reflects mandatory state business licensing fees on top of formation and annual list requirements, not just filing paperwork.
As of 2026, Nevada is the most expensive commonly recommended state for non-resident LLC formation. According to the Nevada Secretary of State, forming an LLC requires $75 for Articles of Organization, $150 for the Initial List of Managers/Members, and a $200 state business license fee, totaling $425 in Year-1 formation costs alone.
The ongoing annual cost is $350 (Annual List $150 + license renewal $200), making Nevada’s 5-year cumulative cost significantly higher than Wyoming or New Mexico. Nevada does not eliminate a single federal tax filing obligation, including Form 5472 or Form 1065.
How to File an LLC as a Non-Resident: Step-by-Step
Step 1: Choose your state
Select based on total Year-1 cost, privacy needs, and banking compatibility. Wyoming ($100 filing, $60 annual minimum) and New Mexico ($50 filing, no annual fee) work best for most non-residents. Delaware ($90 filing, $300 annual franchise tax) makes sense only if you plan to raise venture capital from US investors.
Step 2: Appoint a registered agent
Every US LLC needs a registered agent, a US-based person or company that receives legal documents on your behalf. A physical street address in your formation state is required. PO boxes are not accepted in any US state. Budget $50–$150 per year for this service.
Step 3: File your Articles of Organization
File directly with the state. Fees: New Mexico $50, Wyoming $100, Delaware $90, Florida $125, Nevada $425 total (articles + initial list + state business license). New Mexico has no annual report. Nevada has the highest Year-1 cost of these five states. If Florida’s combination of low formation cost and strong banking infrastructure appeals to you, How to Form an LLC in Florida covers the full filing process for non-residents.
Step 4: Obtain your EIN from the IRS
An EIN (Employer Identification Number, your US business tax ID) is free directly from the IRS. According to the IRS, non-residents without a Social Security Number cannot use the online application. Three options exist:
– Fax Form SS-4 with a return fax number: EIN returned in approximately 4 business days
– Mail Form SS-4: approximately 4 weeks
– Phone at 267-941-1099, Monday–Friday 6 a.m.–11 p.m. Eastern: EIN issued during the call, but line congestion and disconnects are common fax is more reliable
An ITIN (Individual Taxpayer Identification Number) is NOT required to form an LLC or get an EIN. Formation services charge only for the labor of obtaining your EIN, the IRS charges nothing.
Step 5: Open a US business bank account
According toMercury‘s prohibited-countries list (confirmed 2026-05-31), founders domiciled in Pakistan, Nigeria, Philippines, Nepal, or Bangladesh cannot open a Mercury account. Wise Business is the primary alternative for those founders. Wise accepts applications with an EIN, subject to enhanced KYC approval is not guaranteed and verification can take days to weeks.
Founders from India and the UAE may apply to Mercury under standard KYC review.
Step 6: Meet annual compliance obligations
Zero US tax does not mean zero filing. According to the IRS:
– Single-member LLC: File Form 5472 attached to a pro-forma Form 1120 if reportable transactions exist. Failure to file carries a $25,000 penalty per form per year under IRC Section 6038A, with no maximum cap after 90 days.
– Multi-member LLC: File Form 1065 plus a Schedule K-1 per partner, due March 15, extendable to September 15.
Capital contributions and distributions between you and your LLC count as reportable transactions. Many founders miss this.
Country-Specific Guidance: Banking and Stripe Access by Nationality
Your state choice does not affect Stripe or Mercury eligibility. Both platforms decide based on founder nationality and business registration country, not Wyoming vs. Delaware.
India
Mercury does not list India as prohibited (confirmed 2026-05-31); Indian founders may apply subject to standard KYC. According to Stripe, Stripe India moved to invite-only in May 2024. A US LLC gives full USD Stripe access with self-serve signup.
Pakistan
Mercury prohibits Pakistan-domiciled founders, according to support.mercury.com (confirmed 2026-05-31). Wise Business accepts Pakistan-resident owners of US LLCs with an EIN, subject to enhanced KYC approval is not guaranteed. Stripe is not directly available to Pakistan-registered businesses; a US LLC is the standard route.
Pakistan was removed from the FATF grey list in October 2022, per fatf-gafi.org Mercury’s prohibition is an internal platform policy, not an OFAC requirement.
Nigeria
Mercury prohibits Nigeria-domiciled founders (confirmed 2026-05-31). According to wise.com, Wise Business generally accepts Nigeria-resident owners of US LLCs with an EIN, subject to enhanced KYC; address and business-evidence scrutiny is reportedly strict.
Nigeria was removed from the FATF grey list on October 24, 2025, per fatf-gafi.org, Mercury’s ban remains an internal policy decision. Stripe does not directly support Nigerian-registered businesses; a US LLC gives full USD Stripe access.
Bangladesh
Mercury prohibits Bangladesh-domiciled founders (confirmed 2026-05-31). Wise Business is available subject to KYC review. Stripe is accessible via a US LLC.
Philippines
Mercury prohibits Philippines-domiciled founders (confirmed 2026-05-31). According to wise.com, Wise Business accepts Philippines-resident owners subject to standard KYC. Wise operates fully in the Philippines , local account and card since May 2024, making it the strongest banking path for Filipino founders. Stripe is accessible via a US LLC.
South Africa, Kenya, Mexico, Colombia
Stripe is accessible via a US LLC for founders in all four countries. Wise Business is available subject to KYC review. Confirm current Mercury eligibility at mercury.com/help/prohibited-countries before applying , these countries are not on Mercury’s confirmed prohibited list as of 2026-05-31, but Mercury’s list changes.
Important note on Wise KYC: Wise may require an official IRS EIN confirmation document, CP575, 147C, or IRS-stamped SS-4. An EIN number alone may not satisfy Wise compliance review.
Mercury prohibited-countries data last verified: 2026-05-31.
As of 2026, founders domiciled in Pakistan, Nigeria, the Philippines, Nepal, and Bangladesh cannot open a Mercury business bank account, according to Mercury’s prohibited-countries policy Mercury, confirmed 2026-05-31). This restriction applies regardless of which US state the LLC is formed in a Wyoming LLC and a New Mexico LLC face identical Mercury eligibility outcomes.
Wise Business is the primary US banking alternative for founders in these countries, accepting applications with a valid EIN (Employer Identification Number) subject to enhanced KYC review. Approval is not guaranteed.
What Most State Comparison Guides Don’t Tell You
Most state comparison guides pick a winner based on filing fees alone. The real differences are smaller — and some popular claims are simply wrong.
New Mexico: lowest cost, same Stripe and banking access
New Mexico has no annual report and no ongoing state fee. That is a genuine, permanent cost advantage. But some guides imply this affects your banking or payment options, it does not. According to Stripe, Stripe eligibility is determined by where the business is registered, not which state. Mercury and Stripe make decisions at the federal and platform level. No state gives you better Stripe access than another.
Delaware: investor credibility has a real annual cost
According to corp.delaware.gov, Delaware charges a flat $300 annual franchise tax every year, regardless of whether your LLC earns a single dollar. That cost recurs indefinitely. Delaware’s investor reputation matters only if you plan to raise US venture capital. Most non-resident founders running online businesses will never need it.
Nevada: high fees, limited upside for non-residents
According to nvsos.gov, Nevada costs $425 to form and $350 per year ongoing the highest of any commonly recommended state. Guides often claim Nevada ‘does not share data with the IRS.’ That is misleading. Federal tax obligations including Form 5472 and Form 1065 apply regardless of which state you form in. Nevada does not eliminate a single federal filing requirement.
Non-residents cannot elect S-corp status in any state
According to irs.gov, an S-corporation requires all shareholders to be US persons. Non-resident owners cannot make this election in any US state. Your options are the default pass-through treatment disregarded entity or partnership or a C-corp election. No state changes this rule.
Frequently Asked Questions
Does the state I choose affect my Stripe or Mercury access as a non-resident?
No. According to Stripe, Stripe eligibility depends on the country where the business is registered the US not which state. Mercury eligibility depends on the founder’s country of domicile, not the state of formation. A Wyoming LLC and a Delaware LLC give identical Stripe and Mercury access.
Can I open a Mercury account if I am from Pakistan, Nigeria, or Bangladesh?
No. According to support.mercury.com (confirmed 2026-05-31), Mercury prohibits founders domiciled in Pakistan, Nigeria, Bangladesh, the Philippines, and Nepal regardless of which US state the LLC is formed in.
Wise Business is the primary alternative — it accepts founders from these countries with an EIN (Employer Identification Number the LLC’s federal tax ID), subject to enhanced KYC review. Approval is not guaranteed.
Do I need to file a BOI report for my US LLC as a non-resident owner?
No. According to FinCEN, under FinCEN’s interim final rule effective March 26, 2025, US-formed LLCs owned entirely by non-residents are exempt from BOI (Beneficial Ownership Information) reporting. Only LLCs formed under foreign law and registered to do business in a US state must file. Verify current status at fincen.gov before assuming this exemption applies.
What is the difference between an EIN and an ITIN, and which do I need first?
An EIN (Employer Identification Number) is the LLC’s 9-digit federal tax ID, required to open a US bank account and activate Stripe. An ITIN (Individual Taxpayer Identification Number) is your personal tax ID as the owner. According to irs.gov, an ITIN is not required to form an LLC or obtain an EIN, but may be needed later to file a US personal tax return (Form 1040-NR).
How long does it take to get an EIN as a non-resident without an SSN?
According to irs.gov, non-residents without an SSN cannot use the IRS online application. Faxing Form SS-4 with a return fax number takes approximately 4 business days. Mailing takes approximately 4 weeks. Calling the IRS international line at 267-941-1099 can produce an EIN during the call, but line congestion and disconnects are common, fax is the more reliable path. An EIN is free directly from the IRS.
Does New Mexico’s lack of an annual report mean lower banking credibility?
No. Mercury and Stripe make eligibility decisions at the federal and platform level, not the state level. A New Mexico LLC has identical banking and payment processing access to a Wyoming or Delaware LLC. Skipping the annual report reduces your ongoing costs, it does not signal lower legitimacy to US banks or payment processors.
What tax forms does a non-resident-owned single-member LLC need to file?
According to irs.gov/instructions/i5472, a foreign-owned single-member LLC must file Form 5472 attached to a pro-forma Form 1120 annually if it had reportable transactions including capital contributions or distributions. Failure to file carries a $25,000 penalty per form per year under IRC Section 6038A. Zero US tax does not mean zero filing obligation.
Can I elect S-corp status for my US LLC as a non-resident owner?
No. According to irs.gov, S-corp status requires all shareholders to be US persons. Non-resident owners cannot make an S-corp election in any US state. Non-residents are limited to the default pass-through treatment disregarded entity for single-member LLCs, partnership for multi-member LLCs or a C-corp election.
Is Wyoming or New Mexico better for a non-resident with no US income?
New Mexico has the lower Year-1 cost: $50 to form, no annual fee. Wyoming costs $100 to form plus a $60 minimum annual report fee. Both states offer member privacy and identical federal tax treatment. With no US-source income, neither state imposes state-level tax, but federal information filing obligations (Form 5472 for single-member LLCs, Form 1065 for multi-member LLCs) still apply regardless of state.
I am from India, can I use Mercury and Stripe with a US LLC?
Yes. According to support.mercury.com (confirmed 2026-05-31), India is not on Mercury’s prohibited-countries list — Indian founders may apply subject to standard KYC. According to Stripe, Stripe India moved to invite-only in May 2024, but a US LLC gives full USD Stripe access with self-serve signup regardless of where the founder lives.
What is FBAR and does it apply to me as a non-resident owning a US LLC?
FBAR (FinCEN Form 114) requires US persons to report foreign financial accounts exceeding $10,000. As a non-resident owner of a US LLC, you are not a US person, FBAR does not apply to you. FBAR is frequently confused with BOI reporting, which is also currently exempt for US-formed LLCs under FinCEN’s interim final rule effective March 26, 2025.
Should I choose Wyoming or South Dakota for a non-resident LLC?
Wyoming is the stronger choice for non-residents. Wyoming charges $100 to form and $60 per year minimum, per the Wyoming Secretary of State (as of 2026). South Dakota charges $150 to form and $50 per year, per the South Dakota Secretary of State (as of 2026).
Both offer privacy and no state income tax, but Wyoming has broader name recognition with US banks and payment processors. Neither state changes your federal filing obligations.
Conclusion
For most non-residents, New Mexico wins on Year-1 cost: $50 to form, no annual fee, no franchise tax. Wyoming ($100 formation, $60/year minimum) is the stronger choice if bank recognition matters to you.
State choice does not affect Stripe or Mercury eligibility. Both are platform-level decisions. According to support.mercury.com (confirmed 2026-05-31), Mercury prohibits founders domiciled in Pakistan, Nigeria, Philippines, Nepal, and Bangladesh, regardless of which state your LLC is formed in.
Federal filing obligations follow you everywhere. Form 5472 and Form 1065 requirements apply no matter which state you choose. Zero tax does not mean zero filing.
Bizstartz forms US LLCs for non-residents in Wyoming, Delaware, or New Mexico. The Basic plan starts at $199 + state fees. The Pro plan ($299 + state fees) includes EIN filing via Form SS-4 on your behalf. No SSN, US address, or travel required.
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