Wyoming vs New Mexico LLC
Both are top picks for privacy-focused and non-US founders. New Mexico costs less to maintain; a Wyoming company has stronger asset-protection precedent. Here's the practical breakdown.
| Wyoming | New Mexico | |
|---|---|---|
| Filing fee | $100 | $50 |
| Annual report | $60/yr | None |
| 5-year state cost | $340 | $50 |
| Owner privacy | Members not public | Members not public |
| State income tax (LLC) | None | Pass-through (no entity tax) |
| Asset-protection case law | Stronger / more litigated | Less developed |
| Banking acceptance | Wide | Wide |
| Best for | Privacy + asset protection priority | Lowest possible ongoing cost |
How to form an LLC in Wyoming
- Search the Wyoming Secretary of State for an available name.
- File Articles of Organization online ($100 fee).
- Appoint a Wyoming registered agent with a street address.
- Get an EIN from the IRS and open a US bank account.
- File the $60 annual report each year you keep the entity active.
How to form an LLC in New Mexico
- Search the New Mexico Secretary of State business database.
- File Articles of Organization ($50 one-time fee).
- List a New Mexico registered agent on the filing.
- Apply for an EIN and adopt an operating agreement.
- No annual report is required — budget only for agent renewal.
Pick New Mexico if
You want the lowest ongoing state cost. The $50 filing has no annual report. That fits holding LLCs and quiet wrappers with little admin.
Pick Wyoming if
You hold meaningful assets and want charging-order case law behind the statute. The extra $60 per year buys stronger precedent with banks and counterparties.
For non-US founders
Either works. Start with New Mexico if cost is the priority and the LLC will hold low-value or low-risk assets. Move to Wyoming as soon as the LLC starts holding anything materially valuable, or if you'd rather have stronger asset-protection precedent in case of future litigation.
Also compare Wyoming vs Delaware if you might raise US venture capital, or read our full non-US resident LLC guide.
Charging-order protection, in plain English
When someone wins a personal lawsuit against an LLC owner, they want to reach the owner's interest in the LLC. In a strong charging-order state, the creditor's only remedy is a "charging order" — a lien on distributions, if and when the LLC distributes anything. The creditor can't force the LLC to distribute, can't vote membership interests, and can't take over management.
Wyoming's charging-order statute is "sole and exclusive remedy" language, applied to single-member and multi-member LLCs alike, with a long track record of courts upholding it. New Mexico's statute is similar in text but with far fewer litigated cases. For dormant or low-value LLCs the difference is academic. For an LLC holding meaningful assets — rental property, a portfolio of websites, business equipment — the body of Wyoming caselaw is meaningful insurance.
Cost comparison over 5 and 10 years
- Year 1: Wyoming $100 + $60 RA + $60 annual report ≈ $220. New Mexico $50 + $60 RA ≈ $110.
- Year 5 cumulative: Wyoming ≈ $700. New Mexico ≈ $350.
- Year 10 cumulative: Wyoming ≈ $1,300. New Mexico ≈ $650.
That's roughly $650 of "asset protection insurance" over a decade for picking Wyoming. Trivial if the LLC holds anything material; meaningful if the LLC is dormant.
Banking and operational realities
Mercury, Relay, Wise, Brex, and all major US banks open accounts for both Wyoming and New Mexico LLCs. Some traditional brick-and-mortar banks (mostly outside those states) are slightly faster with Wyoming because they see it more often — minor friction, not a blocker.
Stripe, PayPal, Shopify Payments, and similar payment processors treat both identically. There is no real-world business operation that prefers one over the other.
Common mistakes
- Picking New Mexico for an asset-heavy LLC
Save $60/year, lose stronger charging-order precedent. False economy once the LLC holds something worth protecting.
- Picking Wyoming for a dormant holding LLC
If the LLC will never hold meaningful assets, you're paying $60/year for protection you'll never need. New Mexico is the rational pick.
- Forming in either state while operating in California
California requires LLCs doing business in the state to register as foreign LLCs there — $800/year minimum franchise tax. You'll pay both states.
- Skipping the operating agreement
Charging-order protection is strongest when the LLC documentation is real. A signed operating agreement with capitalization records is the difference between a real entity and a court-piercing target.
- Following outdated BOI advice
Older guides say Wyoming and New Mexico LLCs must file BOI with FinCEN. That requirement was removed for all US-formed entities in March 2025.