What is the best state to form a US LLC? A guide for non-US indie hackers

TL;DR: For most non‑US solo developers living outside the United States who want a low-cost, privacy-friendly setup, Wyoming remains the best choice in 2025. Delaware is for VCs/IPO ambitions. Nevada is generally more expensive without major advantages for solo founders.

Quick comparison (2025 estimates)

Feature	Wyoming (Top choice)	Delaware	Nevada
Initial filing fee	~$100	$90–$110	~$75 + licensing fees
Typical setup cost (registered agent, filing)	~$100–$200	~$120–$300	~$200–$450
Annual state fee	$60 (annual report, min)	$300 (LLC annual tax)	$350+ (annual list + business license)
State income tax	0%	0%	0%
Privacy	High (member names not public)	Moderate	High
Typical non-resident yearly cost (est.)	$160–$400	$400+	$400+

Notes: figures are estimates and vary depending on service providers (registered agent, virtual mailbox, CPA). Always verify current fees with state websites.

Breakdown of yearly maintenance & expected costs

Wyoming annual report: $60 minimum (paid to Wyoming SOS).
Registered agent: $50–$150/year (required for non-residents).
Virtual mailbox / mail scanning: $50–$200/year (optional but recommended for receiving mail and official notices).
US tax filing & accounting: $300–$1500/year depending on complexity and CPA. Single-member foreign-owned LLCs commonly file pro forma Form 1120 + Form 5472 (see below).
Payment processor / bank: account fees vary (Mercury is free; some banks require features for fees).

Typical total (Wyoming): $160–$400/year (low-end if you DIY many tasks, higher if you use premium services).

US tax & reporting obligations (important)

Form 5472: Foreign-owned single-member LLCs that are treated as disregarded entities and have reportable transactions must file Form 5472 with a pro forma Form 1120. Penalties for missing Form 5472 can be severe (see IRS instructions). Link: https://www.irs.gov/forms-pubs/about-form-5472
EIN & Form SS-4: Apply for an EIN to open US bank accounts and use payment processors. Non-residents without SSNs may need to fax/mail Form SS-4 or use third-party services to assist with EIN applications. Link: https://www.irs.gov/forms-pubs/about-form-ss-4
US-source income & withholding: If you have US-source income, you may have withholding obligations. Work with a CPA experienced in cross-border taxation.
Sales tax / VAT / Nexus: Digital products/services may trigger sales tax nexus in US states (economic thresholds). Research the states where you have customers and consider sales tax compliance solutions.

Important: US tax law is complex and changes. This guide is educational — consult a US CPA with experience for non-US founders before you file.

Banking, payments & merchant services

Banks / fintech: Mercury (https://mercury.com) and Relay (https://relayfi.com) are commonly used by non-resident founders; they typically require an EIN and company documents. Some require a US-address for verification (registered agent + virtual mailbox works).
Payment processors: Stripe (https://stripe.com) supports US companies; account approval sometimes requires a US SSN or more KYC documentation. Alternatives: PayPal, Paddle, Gumroad, FastSpring depending on product type.
Money movement: Wise (https://wise.com) and Payoneer (https://www.payoneer.com/) are helpful for transferring funds internationally with low fees.
Tip: Keep careful records of payments and bank statements to make Form 5472/1120 filing easier.

When to pick which state

Wyoming — best for solo indie hackers who want low ongoing costs, privacy, and simplicity. Excellent default choice.
Delaware — pick Delaware if you plan to raise venture capital, take the company public, or you’re forming a C-Corp. Delaware is the legal standard for institutional investors (note: VCs usually prefer Delaware C-Corps, not LLCs).
Nevada — higher costs (initial list and business license) with few extra benefits for solo founders; choose Nevada only for specific legal/tax reasons (consult counsel).

Step-by-step checklist (practical workflow)

Pick a state (Wyoming for most solo founders).
Form the LLC: Use a reputable provider (Northwest Registered Agent, Firstbase, or similar) or file directly with the state.
Obtain EIN: Apply online if eligible or file Form SS-4 (see IRS). Many incorporation services assist with EINs.
Set up registered agent & virtual mailbox: Required for legal notices; virtual mailbox helps remote access.
Open a US bank account: Mercury, Relay, or another bank that supports non-resident founders.
Set up accounting: QuickBooks / Xero; keep records for 5472 and company transactions.
File required tax forms: pro forma Form 1120 + Form 5472 if applicable; work with a US CPA experienced with foreign-owned LLCs.
Consider payment processors: Stripe/PayPal/Gumroad depending on product and customer locations.

Useful resources & links

Wyoming Secretary of State: https://sos.wyo.gov/
Delaware Division of Corporations: https://corp.delaware.gov/
Nevada Secretary of State: https://www.nvsos.gov/
IRS — Form SS-4 (EIN): https://www.irs.gov/forms-pubs/about-form-ss-4
IRS — Form 5472: https://www.irs.gov/forms-pubs/about-form-5472
Northwest Registered Agent: https://www.northwestregisteredagent.com/
Firstbase (incorporation & banking assistance): https://firstbase.com/
Stripe Atlas (incorporation + banking help): https://stripe.com/atlas
Mercury bank: https://mercury.com/
Relay: https://relayfi.com/
Wise (international transfers): https://wise.com/
QuickBooks / Xero (accounting): https://quickbooks.intuit.com/, https://www.xero.com/
What is the best state to form a US LLC in 2025? A guide for non-US residents
Wyoming LLC: How To Start an LLC in Wyoming in 11 Steps

Extra tips for non-US founders

Privacy & nominee services: If privacy is a concern, some founders use nominee services or LLC manager structures, but check legal compliance and disclosure rules in both jurisdictions.
Local home-country tax rules: Owning a foreign company may trigger tax reporting obligations in your home country; consult local tax counsel.
Payment flows: If you’re selling to customers in your home country, consider local payment methods and currency conversion costs, and verify local regulations for cross-border payments.
Use trusted providers: For non-residents it’s often worth paying slightly more to a reputable provider (Northwest, Firstbase) to avoid registration or banking issues.

Disclaimer

This post explains general differences and is not legal or tax advice. Tax and corporate laws change — consult a licensed US CPA and an attorney before acting on tax or legal matters.