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Which state should I form my LLC in: Wyoming, Delaware, or New Mexico?
Quick answer
For most bootstrapped and non-US founders, Wyoming is the popular default (low fees, privacy, no state income tax). Delaware suits companies planning to raise venture capital. New Mexico is the cheapest with strong privacy. doola supports all three.
The state choice matters, and doola supports the three that come up most. Wyoming is the common default for bootstrapped and international founders: low formation and annual fees, strong owner privacy, and no state income tax, with a business-friendly reputation. For a lean, profitable LLC, it is usually the sensible pick.
Delaware is the choice when you plan to raise venture capital or eventually convert to a C-corp, because US investors are most familiar and comfortable with Delaware entities and its well-developed corporate law. If fundraising from US investors is on your roadmap, the slight extra cost and formality of Delaware can be worth it.
New Mexico is the budget option: among the cheapest to form and maintain, with good privacy and no annual report requirement in the typical case, which appeals to very cost-conscious solo founders. The trade-off is that it is less of a recognized standard than Wyoming or Delaware.
The honest guidance: default to Wyoming for a bootstrapped LLC, Delaware if you will raise money, and New Mexico to minimize cost. But state choice interacts with taxes and your home country, so this is general information, not legal or tax advice; confirm the best fit with a professional.
Starting a US business? Let doola handle the formation.
doola forms your LLC or C-Corp, gets your EIN, and handles bookkeeping and compliance, even if you're outside the US. A simple way to go from idea to a registered, bank-ready company.
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