Wyoming is our home base and our most common recommendation, but the right state depends on where you operate and what you're optimizing for. Three other states come up often in our consults: New Mexico, South Dakota and Colorado.
New Mexico — privacy and simplicity
New Mexico is one of the few states where LLCs have no annual report requirement at all. Member and manager names are not required on the public filing, and the formation fee is $50 — among the lowest in the nation. For a simple, low-maintenance holding entity, New Mexico is hard to beat.
Note: New Mexico corporations do file a biennial report, but LLCs are exempt.
South Dakota — no state income tax, low upkeep
Like Wyoming, South Dakota has no corporate or personal state income tax. The LLC formation fee is $150 ($165 by paper), and the annual report costs $50 filed online. South Dakota is also a leading trust situs, which makes it a frequent pairing for asset-holding structures.
Colorado — low cost, fast processing
Colorado's LLC formation fee is $50, and the periodic report is $25 per year — some of the cheapest ongoing compliance in the country. Filings are processed quickly online, and the state's economy and talent pool make it attractive for companies that actually operate there.
When forming out of state makes sense
If you operate primarily in one state, you'll usually still need to register there as a foreign entity — which can mean paying fees in two states. Out-of-state formation typically pays off for holding companies, online businesses without a physical footprint, and owners optimizing for privacy or asset protection.
We file in all 50 states and can walk you through the trade-offs on a consult — including registered agent coverage in every state you touch.