Most non-resident founders end up choosing between Wyoming, New Mexico and Delaware for their LLC. Each state has a different mix of cost, privacy and reputation, so the right pick depends on what you plan to do with the business.
The three states at a glance
Wyoming is the default choice for a simple online business or holding company. It has a small yearly fee, strong owner privacy, and fast processing. New Mexico goes further on privacy and drops the yearly state report entirely, but it is less familiar to some banks and investors. Delaware is the choice for anyone planning to raise venture money or convert to a C-Corporation, because investors and law firms know Delaware corporate law well.
Cost in year one
| State | Annual state cost | Owner privacy | Best for |
|---|---|---|---|
| Wyoming | Annual report fee, $60 minimum | Owners not listed on the public formation record | Simple LLCs, e-commerce, holding companies |
| New Mexico | No annual report at all | Owners not listed on the public formation record | Founders who want the lowest ongoing state paperwork |
| Delaware | Franchise tax, $300 flat for most LLCs | Owners not listed on the public formation record | Venture-backed companies, future C-Corps |
The initial filing fee charged by each state's Secretary of State changes from time to time, so check the current amount on the state's own website before you file. PowerLaunch always passes this fee through at cost, with no markup.
Privacy
All three states keep LLC owners off the public formation document, which is one reason they are popular with founders outside the US. The practical difference shows up later, in annual filings. Wyoming asks for a short annual report that does not require owner names. New Mexico asks for nothing at all once the LLC is formed, which is the strongest privacy position of the three on paper. Delaware also keeps owners private but adds the yearly franchise tax payment as the recurring obligation instead of a report.
Processing time
Wyoming is one of the fastest states to file in, usually one to three business days. Most other states, including Delaware and New Mexico, typically take one to two weeks, though this can move up or down depending on how busy the state's office is at the time. If you need a bank account quickly, faster formation matters because the EIN and the bank introduction both come after the state approves the filing. Check the state's site for its current processing time if timing is critical for you.
How banks and Stripe see each state
Banking partners like Mercury, Wise Business and Relay work with LLCs formed in any US state, and approval is always the bank's decision, not PowerLaunch's. What actually matters to a bank is your EIN, your business activity, and your documentation, not which state issued the LLC. That said, Delaware and Wyoming are the two states banks and payment processors see most often, so account reviewers are very used to them. New Mexico entities are approved regularly too, but because the state is used less often, you may get a follow-up question or two during onboarding. None of this should stop you from choosing New Mexico if its cost structure fits you, it is just something to expect.
Stripe treats all three states the same way at signup. What Stripe actually checks is your EIN, your business type, and your banking details, not the state of formation.
When Delaware makes sense
Choose Delaware if you plan to raise money from US venture investors, apply to a startup accelerator, or expect to convert the LLC into a C-Corporation later. Delaware's corporate law is the standard that most investor term sheets and law firm templates are written around, so using Delaware from the start avoids a costly conversion later. The trade-off is the $300 franchise tax each year, which is higher than Wyoming's minimum annual report fee and much higher than New Mexico's zero.
If you are running a straightforward online store, a freelance consulting business, or a small SaaS product with no investors, Delaware's extra cost usually buys you nothing you need.
When New Mexico's zero annual report is worth it
New Mexico is worth considering if you want the lowest possible number of yearly filings and you are comfortable with a state that is less commonly seen by banks. It suits founders running a simple, low-transaction business who want to spend as little time as possible on state-level compliance after formation. The trade-off is that New Mexico is a smaller state for business filings, so some banks, payment processors and even accountants are simply less familiar with it, which can occasionally mean extra questions during onboarding. If your priority is minimum ongoing paperwork over maximum name recognition, New Mexico earns its place on this list.
PowerLaunch pricing for each state in year one
PowerLaunch's Launch plan is $295 a year and includes the formation filing, EIN, operating agreement, registered agent, and virtual business address. Add the state's filing fee at cost, which varies by state and changes over time, so check the current fee on the state's site before you commit. Once you add that fee, your rough year-one cost looks like this:
| State | PowerLaunch Launch plan | Plus state filing fee (check state's site) | Plus first year's
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