Wyoming vs New Mexico: Side-by-Side Comparison
Here's a comprehensive comparison of the two states across all key factors for non-resident LLC formation:
| Feature | Wyoming | New Mexico |
|---|---|---|
| Income Tax | None | 1.7%–5.9% |
| Corporate Tax | None | 4.8%–5.9% |
| Sales Tax | 4% | 5.125% GRT |
| Annual Fee | $60 | $0 |
| Formation Fee | $100 | $50 |
| Privacy | No member/manager disclosure | Complete anonymity (no member/manager in records) |
| Court System | Standard state courts | Standard state courts |
| Asset Protection | Strongest | Moderate |
| Best For | Non-resident LLCs, asset protection | Maximum anonymity, zero-maintenance entities |
Tax Comparison
Wyoming Taxes
- Personal Income Tax: None
- Corporate Tax: None
- Sales Tax: 4%
New Mexico Taxes
- Personal Income Tax: 1.7%–5.9%
- Corporate Tax: 4.8%–5.9%
- Sales Tax: 5.125% GRT
For non-resident entrepreneurs with single-member LLCs treated as disregarded entities, state income tax typically only applies if you have income sourced within that state. If you have no in-state operations, employees, or customers, state income tax may not apply regardless of which state you form in.
Formation & Annual Costs
| Cost | Wyoming | New Mexico |
|---|---|---|
| Formation Fee | $100 | $50 |
| Annual Fee | $60 | $0 |
| Registered Agent (est.) | $100–$300/year | $100–$300/year |
| Estimated Year 1 Total | $310 (with RA) | $200 (with RA) |
Privacy & Asset Protection
Wyoming
- Privacy: No member/manager disclosure
- Asset Protection: Strongest
- Court System: Standard state courts
New Mexico
- Privacy: Complete anonymity (no member/manager in records)
- Asset Protection: Moderate
- Court System: Standard state courts
The Verdict: Wyoming or New Mexico?
New Mexico offers unbeatable anonymity (no member/manager names anywhere in public records) and zero annual fees/reports. Wyoming has no income or corporate tax and the strongest LLC protections. New Mexico is the cheapest to form ($50) and maintain ($0), but has state income and corporate taxes. For non-residents with no NM-sourced income, NM's taxes don't matter, making it a compelling choice. Wyoming offers better legal protections; New Mexico offers better anonymity and lower costs.
Our Recommendation
New Mexico for anonymity and lowest cost; Wyoming for legal protections and no state tax
Remember that regardless of which state you form your LLC in, your federal tax obligations remain the same. All foreign-owned single-member LLCs must file Form 5472 and a pro forma Form 1120 annually, with a $25,000 penalty for non-compliance.
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