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Which state is right for your LLC?

A business address does not change your taxes. It changes access, trust, and privacy. This tool helps you choose a state and understand what actually matters.

How the suggestion works

Nothing here is a black box. These are the exact rules your answers feed into — you can read the whole logic before you answer anything. Rows are who you are (questions 2 and 2b), columns are what matters most to you (question 3). Before we show your result we ask for your email; if you already have an LLC, we skip that step and go straight to the answer.

1Already have an LLC?2Where you run your business2bCitizen or green card? (only if outside the U.S.)3What matters most4Where your customers areYour emailSuggested state + an address plan
Your situationPrivacyLowest ongoing costBank credibilityRaising investment
You live and work in a U.S. stateYour home stateYour home stateYour home stateYour home state *
U.S. citizen or green card holder living abroadWyoming (also New Mexico)New Mexico (also Wyoming)Wyoming (also Delaware)Delaware *
Non-resident founder living abroadWyoming (also New Mexico)New Mexico (also Wyoming)Wyoming (also Delaware)Delaware *

* Raising money from professional investors usually means a Delaware C-corporation, which is a different structure than an LLC. The tool tells you this and points you to a startup attorney.

If you already have an LLC

The tool does not suggest forming a new company. The suggestion becomes: keep your LLC exactly as it is and upgrade the address it uses — with a note that moving an LLC between states (domestication) is a job for a professional.

If you skip the question about where you live

The tool does not guess a state. It gives you the pattern instead: your home state if you end up in the U.S., or Wyoming, New Mexico, or Delaware if you will run the business from abroad — and asks you to come back once you know.

Why the abroad rows narrow to just three states

If you run your business from outside the U.S., no home state anchors you — so the choice really does come down to a short list, and it is the same short list for every founder. Only Delaware, Wyoming, and New Mexico keep owner names off public records. Of those three, New Mexico has the lowest ongoing cost (no annual report, no annual fee), Wyoming is the more widely recognized of the two low-cost options, and Delaware is what professional investors expect. Suggesting any other state would need a made-up reason — for example, a state with no income tax does not lower your income tax, because income tax follows where you live, not where you form.

Where states like California and New York fit

Some states matter for business reasons that have nothing to do with formation paperwork: being seen as part of an industry, or being close to your customers. A Silicon Valley address signals technology; a New York address signals commerce. That is an address decision, not a formation decision — your company can be formed in Wyoming or New Mexico and still carry a Silicon Valley or New York address. In day-to-day business, people see your address far more often than your formation state, and you can change the address without touching your LLC. This tool suggests the formation state; the address state is yours to pick for access, trust, and image.

The rules behind the table

  • 1.Income tax follows where you live, and sales tax follows where your customers are. Only the annual state fee follows where you formed. That is why the state you pick changes less than most people expect.
  • 2.If you live in a U.S. state, forming somewhere else usually means you still have to register in your home state too (called foreign qualification) — a second set of fees and paperwork. That is why residents always get their home state, whatever you picked as your priority.
  • 3.Keeping owners private means your name stays off the state's public records — Delaware, Wyoming, and New Mexico do this, and the full comparison table below marks it as “Owners private”. It does not hide you from banks, the IRS, or federal beneficial-ownership reporting, and the tool says so in the result.
  • 4.Your customers' location (question 4) never changes the suggested state. It changes the sales-tax warnings shown with your result.
  • 5.The suggestion never bends toward where save office happens to have addresses. When we have an address in your suggested state, we show it; when we do not, we explain how to pair your formation state with a business address in another state.

Common questions

Which state is best to form an LLC in?

For most people who live in the United States, the simplest and cheapest choice is your home state. Forming in another state usually means you still have to register in your home state too. Founders without a U.S. home base usually choose Wyoming, New Mexico, or Delaware. Use this tool to see what fits your situation.

Does the state I form in change my taxes?

Not the way people expect. Income tax generally follows where the owner lives, sales tax follows where your customers are, and only the annual state fee follows where you formed. A business address does not move any of these.

Which states let you form an LLC without listing the owners?

Delaware, Wyoming, and New Mexico do not list LLC members or managers in public filings. Nevada is often listed as a fourth, but it publishes managers in its annual list, so it is not anonymous. This keeps your name off public records but not off bank or IRS records.

Can my business address be in a different state than where I form?

Yes. Your formation state and your business or mailing address do not have to match. You will still need a registered agent inside your formation state, which is a separate service.