Choose Your State
Every state has different filing fees, processing times, taxes, and compliance requirements. Pick your state below to see the full breakdown — or use our comparison tool to find the best state for your situation.
Most Popular States for Business Formation
These 8 states account for the majority of new business filings. If you’re not sure where to start, your home state is usually the right answer.
Delaware
LLC: $90 · Corp: $89
Processing: 1–2 days
Franchise tax: $300+/yr
Best for: VC-backed startups
Wyoming
LLC: $100 · Corp: $100
Processing: 1–2 days
Annual report: $60/yr
Best for: Privacy & non-residents
Texas
LLC: $300 · Corp: $300
Processing: 2–5 days
Franchise tax: varies
Best for: TX-based businesses
Florida
LLC: $125 · Corp: $70
Processing: 3–5 days
Annual report: $138.75/yr
Best for: No income tax state
California
LLC: $70 · Corp: $100
Processing: 3–5 days
Franchise tax: $800/yr min
Best for: CA-based businesses
Nevada
LLC: $75 · Corp: $75
Processing: 3–5 days
Business license: $200/yr
Best for: No income tax + privacy
New York
LLC: $200 · Corp: $125
Processing: 5–7 days
Publication req: $300–$1,500
Note: LLC publication required
How to Choose the Right State
The “best state” depends on your situation. Here’s the decision framework.
🏠 Form in Your Home State
Best for 90% of businesses. If you live and work in one state, form there. You avoid double filings, double fees, and the hassle of foreign qualification. This is the right answer for most freelancers, consultants, local businesses, and online businesses run from home.
🔒 Form in Wyoming
Best for privacy and non-U.S. residents. No state income tax, strong privacy protections (no public member disclosure), low annual fees ($60), and fast processing. The top choice for online businesses with no physical location and for international founders.
📈 Form in Delaware
Best for corporations raising investment. The Court of Chancery, well-established corporate law, and universal investor acceptance make Delaware the standard for VC-backed startups. For LLCs, Delaware’s benefits rarely outweigh the extra cost unless you have specific legal needs.
The “no income tax” trap: States like Wyoming, Nevada, and South Dakota have no state income tax — but that only matters if your LLC is taxed in that state. If you live in California and form in Wyoming, California will still tax your income because that’s where you live and work. You’d pay Wyoming’s annual fees PLUS California’s franchise tax. Don’t form out of state to avoid income tax — it doesn’t work that way. Read our full state comparison.
All 50 States + D.C.
Find your state below. Each guide covers LLC formation, incorporation, fees, taxes, registered agent requirements, and compliance deadlines.
Filing fees shown are base state fees and may not include processing fees, report fees, or franchise taxes. Verify current fees on each state’s Secretary of State website.
State Comparison Guides
Not sure which state is best for your specific situation? These guides break it down.
Non-U.S. Residents: Choosing Your State
If you’re forming a U.S. business from outside the country, state selection is more important than for domestic founders — because you won’t be living in any state, you get to pick based purely on business merit.
Wyoming is the top choice for most international founders forming LLCs: no state income tax, strong privacy protections (members aren’t listed on public filings), low annual fees ($60), and straightforward compliance. Delaware is the standard for C-Corporations raising U.S. venture capital. New Mexico is a budget option — low filing fee, no annual report, and no state income tax on pass-through entities.
Whichever state you choose, you’ll need a registered agent with a physical address in that state. We provide registered agent service in all 50 states.
Top 3 States for Non-Residents
- Wyoming — Best overall for LLCs (privacy, low cost, no income tax)
- Delaware — Best for C-Corps raising VC investment
- New Mexico — Budget option (low fee, no annual report)
Frequently Asked Questions
Should I form in my home state or a different state?
Form in your home state unless you have a specific strategic reason not to. If you form in a different state but operate in your home state, you’ll need to register as a “foreign” entity in your home state — paying filing fees, annual reports, and registered agent costs in both states. The only common exceptions: Delaware for VC-backed corporations, and Wyoming for online businesses with no physical location or for non-U.S. residents.
Which state is the cheapest to form an LLC?
Kentucky ($40), Colorado ($50), Iowa ($50), Michigan ($50), Mississippi ($50), and Missouri ($50) have the lowest LLC filing fees. But upfront cost isn’t everything — also consider annual report fees, franchise taxes, and registered agent costs. Some cheap-to-form states have high ongoing costs, and vice versa. Full cheapest state comparison.
Why is Delaware so popular for corporations?
Three reasons: the Court of Chancery (specialized business court with experienced judges, no jury trials), the General Corporation Law (the most developed and predictable corporate law in the country), and investor expectations (VCs and their lawyers are set up for Delaware law). Over 60% of Fortune 500 companies and the majority of VC-backed startups are Delaware corporations. Delaware incorporation guide.
Is Wyoming better than Delaware for an LLC?
For most LLCs, yes. Wyoming has no state income tax, strong privacy (no public member disclosure), low annual fees ($60/year), and a business-friendly legal environment. Delaware’s advantages (Court of Chancery, established case law) matter most for corporations, not LLCs. Unless you specifically need Delaware LLC law for a complex multi-member structure, Wyoming is usually cheaper and simpler. Wyoming LLC benefits.
Can I form in a no-income-tax state to avoid state taxes?
Generally no. If you live in California and form an LLC in Wyoming, California will still tax your income because that’s where you physically live and work. The LLC’s state of formation doesn’t change where you personally owe income tax. Forming out of state for tax purposes only works if you actually relocate — and even then, states like California have aggressive rules for former residents. Don’t form out of state purely for tax avoidance without consulting a CPA.
What is foreign qualification?
If you form your LLC or corporation in one state but do business in another state, you need to register as a “foreign” entity in the state where you operate. This means filing paperwork, paying a registration fee, appointing a registered agent in that state, and filing annual reports there. It’s the reason most small businesses should just form in their home state — foreign qualification doubles your costs and compliance burden. Foreign LLC registration guide.
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