Wyoming vs New Mexico LLC

Pick New Mexico if

You want the cheapest serious US LLC to maintain — $50 once and nothing ever again at the state level. Ideal for low-revenue holding LLCs, dormant entities, and founders who simply need a US legal wrapper without ongoing administrative overhead. New Mexico's lack of an annual report also means there's no later filing that could expose a manager's name.

Pick Wyoming if

You hold meaningful assets in the LLC (real estate, IP, accounts receivable) and want the strongest available charging-order protection backed by actual case law. The extra $60/year is cheap insurance once an LLC has anything worth protecting. Wyoming also has slightly more name recognition 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.