I’m planning to form a US LLC mainly for my online services (consulting and digital products). I don’t live in the US, and I won’t be hiring employees or opening a physical office there—everything’s remote. I’ve heard states like Delaware, Wyoming, and Florida are “business-friendly,” but I’m confused. I just want to pick a state where I don’t get hit with unnecessary taxes or headaches down the line. Any solid advice?
Answer by: abdullah-al-naim
2 weeks ago
When it comes to picking the right state for tax benefits, especially for non-resident entrepreneurs running online businesses, a few options truly stand out—but not all for the same reasons.
Here’s a quick breakdown of the top choices:
Wyoming:
* No state income tax
* No franchise tax
* Low annual fees and privacy-friendly
* Ideal if you want long-term cost-efficiency with minimal state reporting
Delaware:
* No state income tax on out-of-state income
* Well-established legal system for businesses
* Preferred by big corporations, but can be overkill for solopreneurs
* You’ll still need to pay the $300 franchise tax annually
Florida:
* No personal income tax
* Business-friendly for domestic owners
* But not the best for remote/non-resident businesses, especially if you’re not living there
If you don’t plan to live or hire in the U.S., Wyoming is usually the smartest pick. It’s clean, cost-effective, and keeps compliance low. That’s why many of our clients at Business Globalizer choose Wyoming for their company: digital services, SaaS, and even Amazon businesses.
Just don’t forget, you still need to handle federal compliance (like EIN, 5472 filing, BOI reporting), regardless of the state you form in.
Need help deciding based on your business model? We’ve seen it all. Happy to guide you through it, minus the confusion.
