What is the cheapest state to form an LLC?

The cheapest state to form an LLC is the one that's also cheap to keep. Among New Mexico, Wyoming and Delaware, New Mexico (NM), a U.S. state, wins on both counts: a $50 formation fee and no annual report or annual fee to the Secretary of State. Wyoming and Delaware both charge you every year.

Why does the formation fee alone mislead?

You pay the formation fee once. The yearly cost lasts as long as the company does. A state with a low fee up front and a charge every year can cost more after a few years than a state with no recurring charge.

So compare four numbers:

1. The State's formation fee
2. The annual report, if there is one
3. Any yearly tax or fee on top
4. The registered agent, every year

How do New Mexico, Wyoming and Delaware compare?

Delaware adds a $200 penalty plus 1.5% monthly interest if you pay late. The full head-to-head is in New Mexico vs Wyoming vs Delaware, and Wyoming vs New Mexico zooms in on those two.

What about the registered agent?

Every LLC needs one. In New Mexico, the LLC keeps a registered agent and registered office in the state at all times, and the agent's fee comes on top of the State's. With EXNNA, the first 12 months are included in the $200, then it's $99 a year if you renew. You can also name your own eligible New Mexico agent. Read what a registered agent does.

Is the cheapest state to form an LLC always the right one?

Not always. If you plan to raise from U.S. venture funds, Delaware is the standard investors expect, and the extra cost is part of the deal. If you want your name off the public record at the lowest yearly cost, New Mexico fits: its Articles of Organization don't have to list owners or managers.

Your taxes depend on where you live and what the LLC does, not on the state you form in.

What does a New Mexico LLC cost with EXNNA?

$200 in total, State fee included, with a registered agent for 12 months and an Operating Agreement in PDF and editable DOCX. You pay the total in U.S. dollars or in your local currency, where available, by card, online. Every line is in what an LLC really costs, and every option is on our pricing. Ready? Form your LLC online in about two minutes.

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