There is no universal best state. Wyoming often suits small online businesses, Delaware is strongest for venture-backed companies, and New Mexico can be lower-maintenance. Banking, fundraising, where you operate and recurring cost matter more than YouTube advice.
Why this matters
Founders ask this more than any other formation question, and the honest answer is that banking acceptance, where you actually operate and three-year running cost should decide the state long before privacy or filing-fee comparisons.
Go deeper in the full guide
This quick answer is a starting point. For the complete decision - including the checks to run before you pay to form - read the related guide.
Can a Non-US Resident Form a US LLC? The 2026 Guide - read guide →
Evidence
Primary sources
- Limited liability company (LLC)Internal Revenue Service ↗
- Instructions for Form SS-4 (EIN)Internal Revenue Service ↗
- Register your businessU.S. Small Business Administration ↗
Source facts and provider policies were checked on 21 July 2026. Always confirm the linked page before acting.