What To Consider Before Choosing The State For Your LLC

The 4 most important things to consider when you want to form your LLC in a US state as a non-US citizen are the following criteria:

1) Processing Time of each state. While some states are fast, others are very slow. Some have expedited options, but you pay more. For example, in Montana, they make it in 8 days for $35. If you want it in just 24 hours, you have to pay an extra $20, which brings the total to $55. However, in other states like Kentucky and Colorado, you only pay $40 and $50, respectively. Kentucky forms your LLC in 24 hours, while Colorado does so instantaneously. And there is no expedited option. So the processing time is a crucial factor that you need to consider before forming your LLC.

2) Cost of formation of your LLC. Each state has a flat fee that you have to pay to form your LLC, and once again, some states are cheap and other states are very expensive. As of right now, the range of cost goes from $35 to $500.

3) Annual Report of the state you plan to form the LLC in. Some states have no annual report at all, while some other states have a very expensive annual report that you have to file each year or at a time in the year. You will find the annual report of each state below.

4) Dissolution Cost of your LLC in the chosen state. While this is something that most people don't think about, it is better that you do, so that you can save yourself a lot of time and a lot of money. If you ever want to dissolve your LLC, then the best thing to consider before even forming an LLC is the ability to do it online. Some states do not let you file for the dissolution of your LLC online. Wyoming, for example, does not allow you to dissolve your LLC online, but most other states allow you to do that. There is also a flat fee, sometimes it is cheap, and for other states it is expensive. In the list of states we have given you, you will find the cost of each state to dissolve your company.

Here Is A Comprehensive Comparison Between Our Advised States, Taking Into Consideration All The Mentioned Criteria

  • Colorado State (Best For Non-US Citizens)

    1) Processing Time: Instantaneous
    2) Cost Of Formation: 50$
    3) Annual Report: 10$
    4) Dissolution Cost: 10$/ONLINE


    NOTES:     Choose This State If You Want The Fastest Processing Time, As Well As An Affordable Maintenance Of Your LLC.

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  • New Mexico State (2nd Best For Non-US Citizens)

    1) Processing Time: 1-3 Days
    2) Cost Of Formation: 50$
    3) Annual Report: 0$
    4) Dissolution Cost: 25$/ONLINE


    NOTES:     Choose This State If You Want No Annual Report At All. This Gives You The Peace Of Mind Regarding The Annual Report.

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  • Kentucky State (3rd Best For Non-US Citizens)

    1) Processing Time: 24-Hours
    2) Cost Of Formation: 40$
    3) Annual Report: 15$
    4) Dissolution Cost: 40$/NOT ONLINE


    NOTES:     Choose This State If You Want A Cheap Formation Cost. But Keep In Mind That The Dissolution Is Not Online/Cheap!

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  • Montana State (Cheapest)

    1) Processing Time: 8 Days
    2) Cost Of Formation: 35$
    3) Annual Report: 20$
    4) Dissolution Cost: 0$/ONLINE


    NOTES:     Choose This State If You Want The Cheapest Formation Cost. But Keep In Mind That The Processing Time Is Not Fast!

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  • Wyoming State (For Comparison Only)

    1) Processing Time: Instantaneous
    2) Cost Of Formation: 104$
    3) Annual Report: +60$
    4) Dissolution Cost: 60$/NOT ONLINE


    NOTES:     Only Choose This State If You Want To Form Your LLC In A Legacy State. But Keep In Mind That It Is Pricier To Form, To Maintain, And To Dissolve.

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General Notes To Conclude The Comparison

As you can tell from this comparison, the legacy State that is Wyoming is actually not the best option for you as a non-US citizen. Not only is it not cheap to form, but the annual report to maintain it is also not cheap. It costs $60, and you also have to report all assets, which causes the price to go even higher. And on top of all of that, the dissolution of an LLC in Wyoming is also not cheap, standing at $60, and it is not online, which means that you have to rely on a service to do that for you, because to dissolve the company, you would have to send the dissolution articles by mail. And since you're not in the US, that will be very costly and very slow. And to rely on a service to do that for you would cost at least $150. But in the other states, you don't have to deal with that.

So, instead of forming your LLC in Wyoming, you can choose one of the states that we mentioned before. We advise that you form your LLC in either Colorado or New Mexico. If you want the fastest processing time, then go with Colorado. But if you wish to have peace of mind regarding the annual report, then you can go with New Mexico, especially if you don't have a problem waiting for 1-3 days, which is the processing time that New Mexico takes to form your LLC. As for the two other states, only choose Montana, which is the cheapest state in the USA if you don't have a problem waiting for 8days for your LLC to be formed, it is very cheap to form, and also the annual report is not expensive, and you can file a dissolution of your LLC online. And lastly, for Kentucky, it is also cheap, standing at just $40. The processing time is very fast. You can get your LLC in 24 hours with the state. However, the biggest problem with Kentucky State is that the dissolution of the company does not happen online, which means that, just like Wyoming, you have to rely on a service to do that for you, which, once again, will be very costly.

More Information To Look For

  • LLC Service

    To know more about our formation service, which you can use to form your LLC in the fastest time and at the most affordable price.

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  • EIN Service

    To know more about our EIN service, which you can use to get your EIN in the fastest time and at the most affordable price.

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  • Other Services

    To know more about the other services we provide that might interest you as well when forming your company.

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Often Asked Questions

What Is An LLC? And What Do I Need An LLC For?

An LLC (Limited Liability Company) is a U.S. business structure that separates your personal assets (home, car, savings) from business debts and lawsuits.
You need an LLC to:
look more professional, open U.S. bank/payment accounts, sign contracts and wholesale accounts, bring on partners, and keep business finances separate. Works well for online services and digital products, too.

What Is The Difference Between LLC and LTD?

Both offer limited liability, but they’re used in different countries and taxed differently.

  • LLC (U.S.) – Flexible U.S. entity. Owners are “members” , popular for e-commerce and freelancers.
  • LTD (UK/Canada & others) – A company limited by shares. Owners are “shareholders,” run by directors. Profits are taxed at the company level (corporation tax); owners pay tax again on dividends. More formal reporting.

Bottom line: LLC = U.S., flexible taxes/maintenance. LTD = non-U.S. company with corporate tax and stricter filings.
THIS IS NOT legal/tax advice!

How Do I Form The LLC Using A Professional Service Online?

Using an online LLC service is a fast, done-for-you option. Here’s how it works:

  1. Pick a state & plan (they show fees up front).
  2. Enter your LLC details (name, business address, owners/managers).
  3. Registered Agent is included or added (required U.S. address).
  4. They file Articles of Organization with the state.
  5. They can get your EIN from the IRS (add-on or DIY)
  6. You’ll get your approved documents by email; then open a bank account.

Timing & cost: varies by state and plan; basic filings often a few days (rush options available).

Non-U.S. owners: allowed—no SSN needed

What Is The Annual Report That Must Be Filed In The State?

An annual report (sometimes called a periodic or biennial report) is a quick update you file with your state to confirm your LLC’s info—business address, Registered Agent, owners/managers, and contact details—and pay the state fee.

  • Who files? Almost every LLC (requirements vary by state).
  • When & cost? Varies by state (e.g., due by your formation anniversary or a set date; fees can range $0–$400+).
  • How to file? Online or Mail to your Secretary of State site—look up your LLC, review/update info, sign, and pay.
  • Why it matters? Missing it can trigger late fees or even administrative dissolution.

THIS IS NOT legal/tax advice!

What Is An EIN? And What Do I Need An EIN For?

An EIN (Employer Identification Number) is your business’s tax ID issued by the IRS—like an SSN but for a company.

What it’s used for:

  • Open U.S. bank/fintech accounts (Relay, Wise, etc...)
  • Set up payment processors (Stripe, PayPal, Amazon, Etsy)
  • File federal/state taxes.
  • Apply for licenses/permits and some wholesale accounts

Non-U.S. owners: You can get an EIN without an SSN

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