Wyoming vs Delaware vs New Mexico vs Nevada LLC Comparison 

If you’re looking for a way to protect your assets and maintain your privacy while doing business in the US, you’ve likely considered forming a Limited liability Company (LLC).  

But did you know that only four states offer the unique advantage of an anonymous LLC?

To help you explore the options, we’ll compare New Mexico, Wyoming, Nevada ‌ and Delaware – the ‘big four’ of anonymous LLC formation.

Each of these states offers distinct advantages and potential drawbacks. 

Whether you want to benefit from the entrepreneur-friendly regulations in the anonymous LLC states or go offshore to gain the ultimate personal and financial freedom, Nomad Capitalist can help you.

The bespoke Action Plan we create for each client covers everything from tax planning to second residency or citizenship and real estate and company formation matters. 

An Overview of the Anonymous LLC States

Delaware: The First State’s influence on the American business landscape extends far beyond its small geographical size, bordering Maryland, Pennsylvania‌ and New Jersey. 

As the sixth-most densely populated US state, with a population of just over one million, Delaware’s capital is Dover and its largest city is Wilmington. 

For over a century, Delaware has been the preferred state of incorporation for a large number of US companies. They are drawn by its well-established and highly respected legal system, particularly its famed Court of Chancery.

New Mexico: US entrepreneurs and businesses are increasingly flocking to this Southwest state, which borders Texas, Oklahoma and the Mexican states of Chihuahua and Sonora to the south. 

With a population of over 2.1 million, Albuquerque is its largest city, while Santa Fe is the oldest state capital in the US. New Mexico promises a lower cost of living than other Southwestern states in the region.

Wyoming:  A Western state bordering Montana, South Dakota, Nebraska, Idaho, Utah and Colorado, Wyoming embodies the spirit of the American West. 

With a population of just under 600,000 – the least populous US state – Wyoming offers a sense of vastness and freedom. 

Its capital and largest city, Cheyenne, reflects this independent spirit, where a focus on limited regulation and a pro-business attitude have long attracted entrepreneurs and investors. 

From its iconic national parks to its growing tech sector, Wyoming offers a blend of natural beauty and economic opportunity, along with no state income tax.

Nevada: The Silver State is synonymous with the dazzling lights of Las Vegas but has more going for it than just entertainment and gaming. 

Nearly three-quarters of Nevada’s population resides in Clark County, which speaks to the contrast between its busy urban centre and the arid desert landscapes that define much of the state. 

Its capital, Carson City, offers a quieter contrast to high-octane Las Vegas. 

The state has cultivated a reputation for a business-friendly environment, attracting companies with favourable tax policies (no state income tax) and an easier regulatory approach.

What is an Anonymous LLC State?

An anonymous LLC is similar to a regular LLC but with one difference – the names and contact information of owners, shareholders‌ and members aren’t publicly disclosed.

An anonymous LLC state has the necessary regulation to allow the formation of an LLC where ownership information is kept anonymous.

An anonymous LLC can also be called a:

• Confidential LLC
• Secret LLC
• Private LLC.

It’s important to clarify the term ‘foreign LLC’ in the US context. 

In this context, this doesn’t refer to a company owned by non-US citizens or a branch of an international business. Instead, a ‘foreign LLC’ is simply an LLC formed in a state other than your home state. 

If you live in California, for example, and form an LLC in Wyoming, that would be considered a ‘foreign LLC’ in California and would typically require registration in California.

What’s the Difference Between Anonymous LLC States?

In addition to anonymity, each of the four states comes with its own set of benefits.  

Forming a Wyoming LLC (WY LLC)

Wyoming has been somewhat of a trailblazer in LLC formation in the US. 

The most significant reason to form an LLC in Wyoming is to acquire anonymity and to benefit from the absence of state income taxes. 

A Wyoming LLC does not require you to disclose business information regarding the identity of owners, shareholders, managers, directors or suchlike.

However, you must name a filer while filing your annual report. 

You can always use a nominee if you don’t want to disclose your real identity. Wyoming allows the ‘nominee service,’ which allows you to replace the names of real owners with nominees (a law firm, person, legal entity, etc.). 

Public records will show the name of the nominee you chose instead of your name.

Depending on your business, you can expect some of the most minimal reporting requirements in Wyoming. 

Only real estate owners’ information is reported to the Internal Revenue Service (IRS). Moreover, your information is not reported to the Secretary of State. 

Forming a Wyoming LLC is relatively straightforward and affordable. 

The filing fee for the Articles of Organization is US$100. Starting in the second year  –  the annual report fee is (at least) US$60 or 0.0002 per dollar of the LLC’s assets located in Wyoming, whichever is greater.

Wyoming is the most tax-friendly option among the four anonymous LLC states. The state levies no corporate income taxes for an LLC.

It is the only state with statutes protecting single-member LLCs, including charging order protection. 

The assets you hold through your Wyoming LLC can’t be seized by personal creditors to satisfy debts. 

You can form a Wyoming LLC either online through the Secretary of State’s website or by submitting paper forms, which are available for download on the site. The online process is generally faster and more convenient.

It’s worth mentioning that some services allow you to set up a virtual Wyoming office and mailing address, as well as a Wyoming phone number, even if you’re not physically based in the state. 

Forming a Delaware LLC (DE LLC)

Where Wyoming is known for its friendly regulations for small businesses, Delaware works for bigger corporations that don’t mind paying more for privacy and asset protection.

The cornerstone of Delaware’s reputation is its Court of Chancery, a specialised business court that handles corporate disputes without juries. 

It has a long history and a vast body of case law, resulting in a high degree of legal certainty and efficiency in resolving business conflicts. 

This is a major draw for larger companies who anticipate potential legal complexities. After all, the US is known for corporate lawsuits.

Like Wyoming and New Mexico, Delaware does not require the public disclosure of LLC member or manager names on formation documents. However, Delaware does share information with the IRS and other relevant government agencies. 

The anonymity is from the general public, not from legal obligations.

Small businesses avoid Delaware because the fees and certain taxes associated are often too high for them. That’s why the state is mainly home to larger corporations. 

The filing fee for the Certificate of Formation is US$90. In addition, Delaware imposes an annual franchise tax of US$300 for LLCs, regardless of their income or activity. 

There’s also a fee of US$50 to change the registered agent. 

The state corporate tax rate in Delaware is 8.7%, but there’s no corporate sales tax. There is a franchise tax, and, as an LLC owner, you’ll have to pay personal income tax based on your income level. 

​​Delaware law does offer some individual protection for LLC owners, but it’s not as strong as Wyoming’s charging order protection for single-member LLCs.

Some entrepreneurs use a Wyoming LLC to hold shares in a Delaware corporation, getting the best of both worlds.

You can file online using the Delaware Division of Corporations website. The forms are also available to download ‌as PDFs.

Forming a New Mexico LLC (NM LLC)

New Mexico may be late to the game, but it is steadily gaining popularity for company formation. The state has assessed the weak points of other anonymous LLC states and addressed them in its regulations. 

It doesn’t have a dedicated business court system or specific asset protection laws, but it offers a low maintenance cost and the best privacy protection.

New Mexico is the only state that doesn’t require an LLC to disclose any individual names to the state, not even ownership information. 

Other anonymous LLC states require disclosure of ownership information, even if it’s through a nominee, to the state. 

However, you’re required to disclose whether it’s a single-member LLC or manager-managed.

Setting up an anonymous LLC in New Mexico comes with perks such as minimal initial filing fees and no annual reports. 

On top of that, the fee for filing articles of organisation is only US$50, and there are no additional setup or business license fees.

New Mexico levies a state corporate income tax of 5.9%. However, it’s important to note that LLCs are typically treated as pass-through entities for tax purposes. 

Income is not taxed at the corporate level but instead passes through to the members, who report it on their personal income tax returns. 

Whether the New Mexico corporate income tax is a significant factor will depend on the specific structure and income of the LLC. To create an LLC in New Mexico, you’ll need to file your articles of organisation, either online or by post. More details are available on the New Mexico Secretary of State website. 

Forming a Nevada LLC (NV LLC)

Nevada, like Wyoming, is often considered a top-tier state for LLC formation, particularly for those who prioritise asset protection and a favourable tax environment. 

While it shares many similarities with Wyoming, there are some key distinctions to consider. 

Nevada’s State Secretary doesn’t disclose information about LLC owners or members. However, the state has undergone many regulation changes, so there’s no guarantee of how long the anonymity will be upheld.

Forming and maintaining an LLC in Nevada is generally more expensive than in Wyoming. 

The initial filing fee for the articles of organisation is US$75. 

There’s also a required state business licence fee of US$200 and an annual fee for the list of members/managers, which is US$150. 

Nevada is well-known for its strong asset protection laws. 

Similar to Wyoming, it offers ‘charging order protection’ for LLC members. This means that if a member faces a personal judgment or debt, creditors are typically limited in their ability to seize the LLC’s assets. 

Their primary recourse is a charging order, which only entitles them to distributions made to that member – if any are made. 

However, unlike Wyoming, Nevada’s charging order protection may not extend as effectively to single-member LLCs.

A major draw for Nevada LLCs is the state’s tax structure. Nevada has no corporate income tax and no personal income tax. 

This can result in huge tax savings for LLC members. It also has no franchise tax for LLCs.

The required forms to register an LLC in Nevada are available on the Nevada Secretary of State website. You’ll also find all of the necessary details there if you want to register online.

Anonymous LLC States: FAQs

Which US State is the Best for LLC Formation?

If you’re wondering which US state is the best to form an LLC in, there is only one honest answer to that question: it depends.

It depends on your lifestyle, corporate portfolio, tax liabilities and other relevant aspects. All of these puzzle pieces have to work together for you to acquire complete personal and financial freedom.

A corporate consultant dealing with only your business matters may advise you to do something that causes chaos in your personal life. An immigration professional, on the other hand, may suggest a country that is bad for your business. 

To have it all, you need a tailored holistic strategy that only Nomad Capitalist provides.

Our experienced team assesses each aspect of your life to help you to go where you’re treated best. If you want an all-in-one solution to your corporate woes, get in touch with us today.