Top 5 Best States to Open an LLC as a Foreigner in 2025

Every global entrepreneur aiming to enter the US market starts with the million-dollar question:

Which US state is best for opening an LLC as a foreigner?

Because forming an LLC in the right state can unlock credibility with investors, access to payment gateways like Stripe or PayPal, US banking systems, and seamless integration into the world’s largest consumer economy.

From Silicon Valley tech visionaries to e-commerce sellers scaling from their laptops, 44% of US “unicorn” startup founders were born outside the United States.

But how are these founders choosing the best states to open an LLC? That’s exactly what this guide unpacks.

Today, we’ll break down the 5 best states to open an LLC as a foreigner, highlighting their benefits, tax advantages, and privacy laws, plus give you a roadmap for choosing the perfect fit for your business model.

And with doola, you can form your LLC in any of these states (and beyond), open a US bank account, get an EIN, and stay compliant year-round, without requiring any local residency.

Key Factors to Consider When Choosing a State

For a US-based founder, choosing a state might be as simple as “where I live.”

But for a non-US entrepreneur, the decision carries higher stakes. You need to think about formation costs, taxation, privacy, compliance requirements, and global banking access, all while operating from another country.

Let’s break down these key factors so you can make a smart, strategic choice that sets your business up for success.

1. Formation & Annual Fees

When starting a US LLC, your first costs are the formation filing fee and the annual maintenance or renewal fee. These vary widely across states.

Some states, like Wyoming, Montana, and New Mexico, keep these costs low, making them excellent for lean startups or digital founders testing the US market.

Others, like Delaware, Nevada, and California, may charge higher fees, but compensate with legal protections, stronger reputations, and easier access to banks and investors.

Why don’t you take a moment to see how these states compare and what each one has to offer:

⚡ doola Tip:

• If you’re in the early stage of your business or testing product-market fit, choose a low-cost state like Wyoming or New Mexico. They’re easy to form and affordable to maintain.

• If you’re planning to attract investors or scale globally, Delaware or Nevada are worth the higher costs due to their credibility and legal backing.

2. Tax Obligations

Each state has its own tax rules: some charge no state income tax, while others levy franchise or gross receipts taxes, even on out-of-state business income.

As a foreign owner, your goal is to minimize state-level taxes since you’ll already be paying federal taxes (and possibly taxes in your home country).

Here’s a comparative snapshot to help you weigh your options and see what fits your business:

If you’re just beginning to expand into the US, states like Wyoming, Nevada, and Florida help you keep operational costs low while avoiding additional state-level tax headaches. 

States like Delaware and Texas are great once your business starts scaling or when investor confidence and corporate credibility become priorities.

3. Privacy Protections

Privacy laws vary significantly across states, and for many non-US entrepreneurs, keeping personal information off public databases is a top priority.

States like Wyoming and Nevada offer strong privacy frameworks that allow you to create anonymous LLCs, meaning your name and address don’t appear in public state records.

Example: Let’s say you’re a digital entrepreneur from Singapore running multiple e-commerce brands under one holding company. You want to register your US operations without exposing your personal identity or home address online.

By forming a Wyoming anonymous LLC, your registered agent’s information appears publicly, while your own remains private. This keeps your data safe from unsolicited marketing, identity theft, or competitors trying to reverse-engineer your business structure.

4. Ease of Compliance

Operating a business from abroad means you need simplicity and predictability. The easier a state makes it to maintain your LLC, the less time (and money) you’ll spend on compliance.

Some states go the extra mile to make things foreign-founder-friendly:

• Wyoming: Requires only one annual report (which you can file online) and no business license if you operate outside the state.

• Delaware: Lets you file and manage everything digitally, with a straightforward franchise tax process.

• Florida: Has the official Sunbiz portal for online filings, and its rules are easy to understand for first-time founders.

• Nevada: Offers a fast digital registration system, though it requires an initial list of members and state business license (which doola handles for you).

⚡ doola Tip: If you plan to manage your business remotely and want minimal ongoing reporting, “Wyoming” or “Florida” are your best bets.

5. Banking & Business-Friendly Policies

Even if you form your LLC successfully, your business can’t truly operate until you can open a US business bank account and integrate with payment processors like Stripe or PayPal. That’s where the state’s reputation matters.

States like Delaware and Nevada are trusted globally by banks and investors due to their strong legal systems, corporate governance standards, and long-standing pro-business laws. 

Banks are more comfortable verifying LLCs from these states because of consistent regulations and transparency in documentation.

Why are these states trusted?

• Delaware: Home to most US publicly traded companies; banks are familiar with Delaware’s clean, verified registration data.

• Nevada: Known for its stable corporate court system and verified identity framework for registered agents.

• Wyoming: Gaining popularity due to its modern digital registration system and compliance reputation, especially among fintech-friendly banks.

📌 Example: If you’re a SaaS founder from Germany looking to open a US Stripe account, forming in Delaware or Wyoming helps you pass compliance checks faster because payment gateways already recognize LLCs from these states.

Now that you know what makes certain states more favorable for international entrepreneurs, let’s explore the top 5 best states to open an LLC as a foreigner, complete with their unique advantages, business types they’re best suited for, and what makes them stand out in 2025.

Top 5 Best States to Open an LLC as a Foreigner in 2025

For foreign entrepreneurs, especially those launching their first US business remotely, key factors like tax efficiency, privacy protection, investor trust, and operational simplicity matter most. 

With that in mind, let’s explore the five US states that perfectly balance cost, compliance, and credibility.

1. Delaware | The Global Favorite for Foreign Entrepreneurs

Best for: Startups, SaaS companies, and tech founders aiming for scalability and investor trust

Delaware is the undisputed leader when it comes to US business formation. Over 66% of Fortune 500 companies are incorporated here for a reason; it’s built to favor founders. 

From tech startups in London to SaaS founders in Singapore, Delaware is often the go-to for establishing credibility fast.

Why Delaware Leads

✅ Business-Friendly Legal System

Delaware’s Court of Chancery is world-renowned for handling corporate cases efficiently, offering faster rulings and predictable outcomes. It’s perfect for founders planning to raise venture capital or negotiate investor deals with confidence.

✅ No Residency Requirement

You don’t need to live in the US to form a Delaware LLC.

Everything, from registration to annual filings, can be managed online through a registered agent, making it seamless for global founders.

✅ Low Franchise Tax for Small LLCs

Most small Delaware LLCs pay just $300 per year, making it one of the most cost-effective states for startups and international entrepreneurs looking to keep overheads low.

✅ Global Banking Recognition

Delaware enjoys worldwide credibility with banks, fintech platforms, and payment processors, which helps foreign founders open US business bank accounts remotely with fewer hurdles.

Example: A Singapore-based SaaS founder registering a Delaware LLC can gain instant credibility when pitching to US investors, because most of them are already familiar with Delaware’s legal protections.

🔖 Related Reading: Delaware Franchise Tax: What You Need To Know

2. Wyoming | Best for Privacy and Low Costs

Best for: E-commerce sellers, solopreneurs, and small digital businesses

If you want affordability and anonymity, Wyoming is perfect for your business. It’s famous for its rock-bottom fees and unmatched privacy, so your name doesn’t even appear in “public records”.

Why Wyoming Is Great for Foreign Founders

✅ No State Income Tax

Wyoming doesn’t charge any personal or corporate income tax. That means more profit stays in your pocket, making it a top pick for freelancers, solopreneurs, and global entrepreneurs running lean, digital-first businesses.

✅ Low Filing & Annual Maintenance Costs

With a formation fee of around $100 and an annual report fee of just $60, Wyoming offers one of the most affordable LLC setups in the US. It’s best for founders who want to minimize overhead without sacrificing compliance or credibility.

✅ Strong Privacy and Anonymity Protection

Wyoming LLCs don’t require public disclosure of member or manager information, offering an added layer of protection for founders who value discretion. This privacy-first approach makes it especially appealing to international entrepreneurs operating across multiple markets.

✅ Fully Remote Setup and Management

You can form and manage your Wyoming LLC from anywhere in the world; all you need is a registered agent in the state. Every step, from registration to annual filings, can be completed online, making it ideal for non-US residents seeking a seamless, borderless setup.

Example: A digital nomad in Bali running multiple Shopify stores can form a Wyoming LLC for under $200 and manage it entirely online without revealing their identity publicly.

🔖 Related Reading: Forming a Wyoming LLC as a Foreigner: A Complete Guide

3. Nevada | Best for Privacy & Asset Protection

Best for: High-risk industries, online entrepreneurs, and global investors who prioritize anonymity and asset protection

Nevada is often called the “Fort Knox” of US business privacy, and for good reason. 

With some of the strongest asset protection and confidentiality laws in the country, it’s a hub for foreign entrepreneurs who want to safeguard their wealth while enjoying a tax-free business environment.

Why Nevada Stands Out

✅ No State Income, Franchise, or Corporate Tax

Nevada offers a complete tax-free advantage on income generated within the state. This means your LLC profits stay with you; no state-level deductions. For global founders reinvesting in growth or scaling multiple ventures, that’s a huge financial edge.

✅ Strong Asset Protection Framework

Nevada’s asset protection laws are among the toughest in the US.

Creditors can’t seize your LLC’s assets to satisfy personal debts, a crucial safeguard for entrepreneurs in high-liability or high-risk industries like fintech, consulting, or crypto. This “charging order protection” ensures that your business stays secure, even in the face of personal lawsuits.

✅ High-Level Privacy and Confidentiality

Nevada doesn’t require the public disclosure of member, manager, or shareholder information. This makes it a top choice for international founders who prefer to keep ownership details private, especially when operating across multiple jurisdictions.

✅ Fast Incorporation and Global Banking Access

With most filings processed in just 1–2 business days, Nevada offers one of the fastest incorporation timelines in the US.

Plus, Nevada LLCs are widely recognized by global banks, fintech platforms, and payment gateways, making it easier for non-residents to open business accounts and transact globally.

Example: A global consultant earning $200,000 annually through a Nevada LLC could save approximately $13,000–$15,000 each year compared to operating in states with corporate or franchise taxes (like California or New York).

🔖 Related Reading: How to Start an LLC in Nevada: A Step-by-Step Guide for 2025

4. Florida | Best for Foreigners Selling to US Consumers

Best for: E-commerce founders, service providers, and consumer-focused businesses

For foreign entrepreneurs, Florida offers the perfect mix of tax freedom, digital convenience, and global reach.

With no state income tax and an ultra-smooth online LLC setup, it’s a favorite among international e-commerce sellers who want to plug directly into the US economy.

Why Florida Works for Non-US Entrepreneurs

✅ No State Income Tax

Florida lets you keep every cent of your hard-earned profits, with no extra layer of state taxation. It’s especially appealing for founders who already pay taxes in their home country and want to avoid double taxation on US business earnings.

✅ Fast & Fully Online LLC Formation

Florida’s registration process is 100% digital, and your LLC can often be approved within 1–2 business days.

Foreign founders can handle everything remotely through a registered agent without even requiring any US residency.

✅ Recognized by Major Payment Gateways

Florida LLCs are instantly accepted by Stripe, PayPal, and Shopify Payments, which means seamless transaction processing and global credibility for your online store. And that’s a huge win for e-commerce sellers. 

✅ Access to a Diverse and Expanding Consumer Market

Florida isn’t just business-friendly; it’s strategically positioned. Its proximity to Latin America and Europe makes it a logistics powerhouse, offering faster shipping routes and stronger cultural ties for cross-border sellers.

Example: Let’s say, there’s this Spanish entrepreneur running a luxury skincare brand for US customers. By forming a Florida LLC, she can connect directly to Shopify Payments and Stripe, fulfilling orders from her Spanish warehouse.

So, technically, she gains US market access without relocating, all while leveraging Florida’s tax benefits and global credibility.

🔖 Related Reading: How much does an LLC cost in Florida? LLC fees explained

5. Texas | Best for Business Growth and Scale

Best for: Manufacturing, logistics, and tech founders planning to scale operations.

Texas isn’t just big as a state, it’s big on business opportunities too.

With its booming economy, no state income tax, and world-class infrastructure, Texas has become a global magnet for founders looking to scale efficiently and sustainably. 

Why Texas Stands Out

✅ No State Income Tax

Just like Florida and Wyoming, Texas keeps your profits intact.

And no state income tax means you can reinvest earnings directly into scaling your business, hiring more staff, or upgrading operations. This makes it one of the most cost-effective states for both early-stage and high-growth founders.

✅ Low Franchise Tax (Based on Revenue)

Texas only imposes a franchise tax on businesses earning over $1.23 million annually, and even then, the rate is extremely low, between 0.375% and 0.75%, depending on your business structure.

That means smaller startups pay nothing until they hit major revenue milestones; a win for lean, fast-scaling founders.

✅ World-Class Infrastructure & Logistics Network

Texas has some of the best infrastructure in the US, with major international airports, deep-sea ports, and advanced freight systems.

For businesses managing physical products or hybrid operations, this translates to faster shipping, lower logistics costs, and global distribution advantages.

✅ Global Business Hub & Tech Ecosystem

From Austin’s vibrant tech scene to Houston’s global trade networks, Texas has become a cross-industry magnet.

It’s home to over 50 Fortune 500 companies (including Dell, AT&T, and ExxonMobil), fostering a climate of innovation, mentorship, and collaboration.

📌 Example: Let’s say your Texas LLC earns $1.5 million in annual revenue. Here’s what your franchise tax will look like:

Even at the higher end, that’s far less than what you’d pay in states with corporate tax rates between 6%–9%, translating to thousands of dollars in savings each year that can fuel your next phase of growth.

🔖 Related Reading: Top 5 Benefits of Forming an LLC in Texas (And How to Get Started)

Each of these five states, Delaware, Wyoming, Nevada, Florida, and Texas, brings its own unique advantages.

So, whether you’re building a global e-commerce brand, launching a SaaS startup, or scaling a consulting business, your choice of state will shape your growth, compliance, and financial efficiency for years to come.

At a Glance: Best States for Foreigners to Open an LLC

How to Choose the Right State for Your LLC

For US-based founders, the choice often depends on location. But for foreign entrepreneurs, the playing field is wide open. You can form an LLC in any state, regardless of where you live.

This is exactly where being a non-US founder can tip the scale in your favor. 

The flexibility is empowering, but it also means you need a clear decision-making framework to find the perfect fit for your business model, budget, and growth goals.

Let’s break down how to choose the best state for your specific LLC needs using a step-by-step decision framework.

Step 1: Assess Your Business Model

Start by identifying what kind of business you’re running and how you plan to operate in the US.

1. Online or Digital Businesses (e.g., SaaS, Content Creation, Consulting)

For fully remote businesses that don’t require a physical presence in the US, Wyoming and Delaware are top choices.

Both allow you to manage everything online, offer low compliance requirements, and are highly compatible with digital payment gateways like Stripe and PayPal.

2. E-commerce Brands or Amazon Sellers

If your business involves US-based customers, Florida or Texas may be more advantageous. They combine large consumer markets with tax benefits and strong fulfillment infrastructure.

3. Businesses Seeking Funding or Credibility (e.g., Startups, SaaS, Global Brands)

Delaware is the global gold standard for investors and venture capitalists.

If you plan to raise capital, Delaware’s legal reputation and structured corporate governance give investors instant confidence in your business setup.

Step 2: Compare Tax and Privacy Priorities

Once you’ve mapped your business model, weigh your financial and privacy needs. Taxes and privacy laws differ dramatically between states, and both can significantly affect your operations.

• If privacy is your priority: Go with Wyoming or Nevada, where you can form an anonymous LLC. Your personal details stay off public records, helping you protect your identity, prevent spam, and separate your personal and professional presence.

• If minimizing taxes is important: Look to Wyoming, Nevada, Florida, or Texas, all with no state income tax. For a founder operating globally, this keeps your profits in your pocket rather than tied up in unnecessary state taxes.

• If credibility outweighs cost: Delaware has a small annual franchise tax but unmatched reputation. Many investors, banks, and payment platforms automatically trust Delaware LLCs because they’re familiar with the state’s laws and documentation process.

📌 Example: A founder from the UK running a global SaaS platform may prefer Delaware for its investor credibility, while a solopreneur from Dubai running a Shopify store may choose Wyoming to enjoy privacy and cost-efficiency.

Step 3: Consider Your Customer Base

Your customer base can also determine which state fits best. So ask yourself this question:

Where are most of my customers located, and does state proximity or reputation matter to them?

Let’s now consider the following three scenarios:

1. Selling to US consumers directly (via e-commerce or services) 

Florida is ideal for businesses targeting American consumers. It’s a large market with no state income tax and strong connections to Latin American and European trade.

2. Working with US partners or suppliers

Texas stands out for its infrastructure, logistics networks, and proximity to major trade hubs.

3. Global digital services (clients worldwide)

Wyoming or Nevada let you maintain flexibility without needing to establish a US physical presence.

For example, let’s say you’re an Indian founder offering digital marketing services to US clients. Forming your LLC in Wyoming gives you low costs and full online manageability, while still letting you invoice US clients and access local payment solutions.

Step 4: Think Long-Term, Prioritize Scalability Over Short-Term Costs

Many first-time founders choose the cheapest state at formation, but that can backfire as your business scales. Your goal should be to pick a state that grows with your business, not one you’ll outgrow in a year.

• If you plan to raise venture capital or open US offices, Delaware is the most scalable choice.

• If you expect to stay lean and digital, Wyoming or Nevada balance affordability and privacy for long-term sustainability.

• If you’re scaling toward large consumer operations or logistics, Texas is built for growth with pro-business laws and vast infrastructure.

Forming in a state that aligns with your 5-year vision can save you the hassle and expense of redomiciling (transferring) your LLC later.

📌 Putting It All Together

Here’s a quick decision framework to visualize your options and choose the best state:

Once you’ve identified your priorities, doola can help you bring it all to life: forming your LLC in the best state, setting up your EIN and business bank account, and ensuring full compliance from day one.

How doola Helps Foreign Entrepreneurs Start Their US LLCs

Having helped founders from over 175+ countries start, manage, and grow their US businesses, we’ve seen firsthand where most foreign entrepreneurs hit roadblocks, and here are a few:

• Navigating complex US formation laws

• Understanding tax obligations

• Setting up bank accounts and EINs

• Maintaining annual compliance

doola changes that. Once you sign up for our services, you get  LLC formation in any US state, EIN and US business bank account setup, US mailing address and document forwarding, and of course, ongoing bookkeeping, tax filing, and compliance support.

Whether you’re launching your first e-commerce brand or expanding your global SaaS, doola makes US business formation simple, fast, and compliant.

With doola, you don’t just get business formation; you get a full growth ecosystem built for global entrepreneurs. From formation to finances, doola helps you launch confidently, stay compliant, and scale seamlessly.

Sign up today and let’s turn your global business dream into a US reality.

FAQs

Can a non-US citizen legally own an LLC in the US?

Yes. The US allows foreign individuals and companies to own LLCs without residency requirements.

Do foreigners need a US address to form an LLC?

No. You only need a registered agent with a US address, which doola provides.

What is the cheapest state to open an LLC as a foreigner?

Wyoming is generally the most affordable, with low fees and no income tax.

Do I need an EIN or ITIN to start a US LLC?

You’ll need an EIN (Employer Identification Number) for tax and banking purposes. doola helps you get one easily.

Can I open a US business bank account without visiting the US?

Yes, with doola’s banking partners, you can open a remote US account from anywhere.

Which states offer the best privacy for LLC owners?

Wyoming and Nevada offer the strongest privacy protections for LLC members.

How does doola help with taxes and compliance for foreign LLC owners?

doola handles your annual filings, bookkeeping, and tax returns, ensuring you stay compliant while focusing on growth.