Wyoming vs Montana vs New Mexico LLC: Which State Is Best for Non-Residents in 2025?

If you are a non-US resident looking to form a US LLC, the state you choose matters. Wyoming, Montana, and New Mexico are the three most popular states for foreign nationals — each with different costs, timelines, and trade-offs. This guide breaks down the real differences so you can make the right choice for your business.

Why These Three States?

Most US states have high filing fees, annual reports with fees, and unnecessary complexity for non-residents. Wyoming, Montana, and New Mexico stand out because they have:

• Low or no annual fees
• No state income tax (Wyoming and Montana)
• Simple formation process
• Strong LLC privacy protections
• Wide acceptance by Stripe, PayPal, and US banks

Wyoming LLC

Overview

Wyoming invented the LLC in 1977 and remains the gold standard for non-resident business formation. It has the most established legal framework and the strongest asset protection laws in the United States.

Key facts

• Formation time: 2 business days
• State filing fee: ~$100
• Annual report: Yes, $60/year minimum
• State income tax: None
• Privacy: Member names not required on public record

Best for

Founders who want the most credible, widely recognized US business entity. Wyoming LLCs are accepted by every major bank and payment processor without question. If you plan to raise investment, open multiple bank accounts, or build a long-term US business presence, Wyoming is the right choice.

LaunchBridge Wyoming pricing

Starting at 1,899 DH for the Basic package. Ultimate package (with all payment gateways) at 2,399 DH.

Montana LLC

Overview

Montana is the fastest and most cost-effective option for non-residents who need to move quickly. It has no sales tax — which makes it particularly attractive for product-based businesses — and a straightforward annual report process.

Key facts

• Formation time: 3 business days
• State filing fee: ~$35
• Annual report: Yes, $15/year
• State income tax: Yes (but irrelevant for non-residents with no MT-source income)
• Sales tax: None

Best for

Founders who want to start fast at the lowest possible cost. Montana is ideal for freelancers, digital service providers, and e-commerce sellers who want a credible US entity without paying Wyoming's premium. The $15/year annual report fee is the lowest of any LLC-friendly state.

LaunchBridge Montana pricing

Starting at 1,299 DH for the Basic package — the most affordable entry point. Ultimate package at 1,799 DH.

New Mexico LLC

Overview

New Mexico is the most affordable and privacy-friendly option. Uniquely, New Mexico does not require an annual report — meaning once your LLC is formed, there are no recurring state fees unless you choose to hire a registered agent (which is required).

Key facts

• Formation time: 7 business days
• State filing fee: ~$50
• Annual report: None required
• State income tax: Yes (irrelevant for non-residents)
• Privacy: Member names not on public record

Best for

Beginners and founders on a tight budget who want to test an LLC structure before committing to higher fees. New Mexico's no-annual-report policy makes it the cheapest option to maintain long-term. However, formation takes longer (7 days) and the state is slightly less recognized than Wyoming by some older banking institutions.

LaunchBridge New Mexico pricing

Starting at 1,399 DH for the Basic package. Ultimate package at 1,899 DH — the best value for a full payment gateway setup.

Side-by-Side Comparison

Factor	Wyoming	Montana	New Mexico
Formation speed	2 days	3 days	7 days
Filing fee	~$100	~$35	~$50
Annual report	$60/yr	$15/yr	None
State income tax	No	Yes*	Yes*
Bank/Stripe acceptance	Excellent	Very good	Good
Privacy	High	Medium	High
Best for	Credibility	Speed + value	Budget

*State income tax does not apply to non-residents with no state-sourced income.

Which State Should You Choose?

Choose Wyoming if: you want the most respected, future-proof LLC structure, plan to raise investment, or want to open multiple US bank accounts with zero friction.

Choose Montana if: you want to start fast at the lowest cost, run a digital business or sell products online, and want the cheapest annual maintenance fees.

Choose New Mexico if: you are just getting started, want zero recurring state fees, and do not need the LLC formed in under a week.

Does the State Affect Stripe or PayPal Approval?

In practice, no. All three states are recognized by Stripe, PayPal Business, Mercury, Wise, and Payoneer. Wyoming carries the most institutional recognition, but Montana and New Mexico LLCs are routinely approved for all major payment processors when the application is done correctly.

LaunchBridge has successfully onboarded clients across all three states to the full suite of payment gateways.

Ready to Form Your LLC?

LaunchBridge handles formation in all three states with delivery in as little as 2 days. Every package includes LLC creation, registered agent, US phone number, and EIN. The Ultimate package adds full payment gateway onboarding.