The decision between a Wyoming and New Mexico LLC can save business owners thousands in taxes and fees. Wyoming charges $100 for the original filing and $50 for annual reports. New Mexico provides better value with a $50 filing fee and no annual reporting requirements. Wyoming's zero-tax structure makes it attractive by eliminating corporate income tax, personal income tax, and franchise tax. New Mexico's corporate income tax rates range from 4.9% to 5.9%. Both states protect privacy exceptionally well but use different methods. Wyoming doesn't require public disclosure of members or managers. New Mexico allows complete anonymous ownership. Understanding these differences in costs, taxes, and privacy features is a vital part to make an informed choice about LLC formation location.
Wyoming vs New Mexico LLC: Formation Process Comparison
Starting an LLC means dealing with each state's unique setup process. The way you form an LLC in Wyoming is different by a lot from New Mexico. This affects your paperwork needs, timing, and costs - all crucial factors in getting your business up and running.
Filing Requirements and Documentation
Each state has its own set of paperwork requirements:
Wyoming LLC Requirements:
- Articles of Organization (with company name including "LLC," "Limited Liability Company," or similar designations)
- Your business name must stand out from other Wyoming companies [1]
- Registered agent designation (you can do this yourself or hire a service)
- Filing fee payment of $100 ($104 online with credit card fee) [1]
- Series LLCs are available (parent LLC costs $100, each child series costs $10) [1]
New Mexico LLC Requirements:
- Articles of Organization with company name (must include "LLC," "Limited Liability Company," etc.)
- Name reservation is optional ($20 for 120 days) [1]
- Registered agent designation (must be a third party if you don't live there) [2]
- Filing fee payment of $50 [1]
- Operating Agreement (good to have but not required by law) [3]
Processing Times: What to Expect
Each state processes LLC formations at different speeds:
Wyoming Processing:
- Online filing happens right away [4]
- Mail filing takes 10-15 business days plus mail transit time (4-5 weeks total) [5]
- You can't speed up the process with extra fees [6]
New Mexico Processing:
- Online filing takes 1-3 business days [3]
- Mail filing needs 15-20 business days (about 2-3 weeks) [3]
- Fast-track option: 2 business days (extra fee applies) [7]
Online vs. Mail-in Registration Options
Both states let you file different ways:
Wyoming Registration Options:
- Online filing ($104 total) gives you instant processing and immediate document access [4]
- Mail filing ($100) takes much longer (up to 5 weeks with mail time) [5]
- Both methods use the same Articles of Organization form
New Mexico Registration Options:
- Online filing ($50) takes 1-3 business days to process [3]
- Mail filing isn't the best choice because it takes longer
- You must file everything through the Secretary of State website
Formation Costs Breakdown
| Cost Category | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Filing Fee | $100 ($104 online) [1] | $50 [1] |
| Name Reservation | $60 (optional) [1] | $20 (optional) [1] |
| Registered Agent | $0 (self) or $125+ (service) [1] | $100-$300 (required) [1] |
| Annual Report | $60 minimum [1] | $0 (not required) [1] |
| State Business License | $60 for Sales/Use Tax License [1] | Industry-specific ($50-$100) [1] |
| Series LLC Option | $10 per child series [1] | Not available |
| Franchise Tax | $0 [1] | $50 annual flat tax [1] |
Formation Insights:
Non-US residents can choose either state since neither asks for US citizenship to create an LLC [1]. Each state's process comes with its own benefits based on what your business needs.
Wyoming works best if you need your LLC right away since online filings process instantly [4]. New Mexico saves you money with lower filing fees and no yearly reports [1].
Business owners who value privacy might like Wyoming's strong charging order protections [2]. Those looking to keep ongoing costs low should consider New Mexico's structure, which doesn't need yearly reports [8].
Companies with big assets might find Wyoming's asset-based yearly fee (minimum $60) [1] can get pricey compared to New Mexico's simpler system. But Wyoming's 30-year-old business court system gives better legal clarity for complex business deals [2].
Tax Structure Face-Off: Which State Offers Better Benefits?
Tax choices can make or break an LLC's profits over time. Let's look at how Wyoming and New Mexico stack up against each other when it comes to taxes, which affects business owners both in the US and abroad.
Wyoming's Zero Tax Advantage
Wyoming ranks among the most welcoming states for taxes in America. The state gives businesses a true zero-tax environment. Here's what you won't pay:
- No corporate income tax for LLCs [4]
- No personal income tax [9]
- No franchise tax [2]
- No business license tax [10]
This tax setup helps businesses save money quickly. Wyoming asks for just $60 yearly if your business has less than $250,000 in assets. Beyond that, you pay $0.0002 per dollar of assets [2].
New Mexico's Tax Obligations
New Mexico's tax setup needs more attention:
- Corporate income tax: 4.8%-5.9% [11]
- Personal income tax: 1.7%-4.9% [11]
- Annual franchise tax: $50 flat fee [10]
- Gross receipts tax: 5%-9.3125% on consumer sales [12]
Your LLC must register with New Mexico's Taxation and Revenue Department [8]. Pass-through entities need to file their tax information when federal returns are due [13].
Federal Tax Considerations for Both States
| Tax Consideration | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Default Tax Status | Pass-through | Pass-through |
| Self-Employment Tax | 15.3% (federal) | 15.3% (federal) |
| Corporate Tax Election | Available | Available |
| S-Corp Election | Available | Available |
| Entity-Level Tax Option | Not available | Available (4.9%) [13] |
New Mexico rolled out a special entity-level tax choice in 2022. This lets pass-through entities pay taxes directly instead of passing them to individual members [8].
Tax Implications for Non-US Residents
Both states bring different advantages to non-US residents:
Wyoming Benefits:
- No state income tax on foreign-sourced income [3]
- Federal tax rate of 30% applies only to US-sourced income [3]
- No need to report foreign income to the state [5]
New Mexico Considerations:
- State taxes apply to US-sourced income [14]
- LLC members who aren't residents must withhold taxes [13]
- Foreign-owned entities must file information reports [12]
Non-resident LLC owners in Wyoming skip state taxes completely and pay federal taxes only on US income. Wyoming works best for businesses that mainly earn foreign income. New Mexico might appeal to startups with small US operations because of its $50 filing fee and no yearly reporting needs [15].
Privacy and Asset Protection: Legal Shields Compared
Privacy and asset protection are key factors to consider when choosing between Wyoming and New Mexico for LLC formation. These states give business owners different legal shields to protect their identities and assets, though each state's approach varies in strength and how it works.
Wyoming's Strong Privacy Protections
Wyoming is 20 years old and gives LLC owners solid privacy measures. The state does not require members or managers to be listed on the Articles of Organization [16]. Public records show only the registered agent's information, which keeps owner identities private [6]. Wyoming lets owners use "nominee services" where a law firm or legal entity can stand in for the actual owners [4]. This setup means public records show the nominee's name instead of the real owner.
New Mexico's Anonymity Features
New Mexico leads all LLC-friendly states in privacy protection. It's the only state that doesn't ask an LLC to reveal any individual names to the state—not even who owns it [16]. The state still needs to know if the entity has a single member or manager [16]. New Mexico has looked at problems other anonymous LLC states face and fixed them in its rules [4].
Asset Protection Laws: State-by-State Analysis
| Protection Feature | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Charging Order Protection | Yes (strongest) | Simple protection |
| Single-Member LLC Protection | Yes (unique statutory protection) | Limited |
| Creditor Asset Seizure | Prevented by statute | Possible |
| Legal Precedent | Well-established | Less developed |
| Asset Holding Suitability | Excellent | Good for privacy-focused holding |
Wyoming shines with its detailed asset protection laws, especially for business owners worried about personal liability. The state has specific laws that protect single-member LLCs—something most other states don't offer [16]. New Mexico doesn't have dedicated asset protection laws or a specialized business court system [4].
Charging Order Protection Differences
The main difference between these states lies in their charging order protection capabilities. Wyoming's charging order protection stops creditors from taking LLC assets to pay a member's personal debts [16]. Wyoming is unique because it's the only state with laws that specifically protect single-member LLCs through charging order protection [17].
Wyoming's protection is known as the "exclusive remedy." This means courts can't order foreclosure or other solutions beyond the charging order [18]. This legal shield works well because creditors can only receive distributions if they happen—they can't force payments or take LLC assets [19].
New Mexico might be great for privacy, but its asset protection isn't as strong. The New Mexico LLC Act doesn't specifically make charging orders the only option available to creditors [20]. Business owners who want strong asset protection usually pick Wyoming, while those focused on staying anonymous and keeping costs low often go with New Mexico.
Annual Compliance Requirements and Costs
The annual maintenance costs and paperwork create a vital difference between Wyoming and New Mexico LLC structures. These yearly requirements affect both operating costs and paperwork load for business owners.
Wyoming's Annual Report Requirements
Wyoming requires annual reporting for all LLCs, which is due on the first day of the anniversary month of formation [21]. Your annual report comes due by June 1st each year if you formed your LLC on June 15th [1]. The state sets the filing fee at two-tenths of one mill on the dollar ($.0002) based on Wyoming-located assets, with a $60 minimum payment [1]. Most Wyoming LLC owners pay $60 plus a $2 online convenience fee [22].
Your LLC faces administrative dissolution if you miss the filing deadline by 60 days [1]. Wyoming's Secretary of State notes that missed filings are the biggest reason LLCs shut down in the state [1].
New Mexico's Zero Annual Report Advantage
New Mexico stands out because it needs no annual reports or fees for LLCs [23]. LLCs don't have to file any recurring paperwork, unlike corporations that must submit biennial reports [24]. This saves money whatever your LLC's size or revenue.
New Mexico LLC owners have fewer paperwork hassles. There are no deadlines to remember, forms to fill out, or penalties to worry about [23]. Your New Mexico LLC keeps running without extra state paperwork once it's formed [25].
Ongoing Fees Comparison Table
| Requirement | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Annual Report | Required | Not required |
| Minimum Annual Fee | $60 | $0 |
| Filing Deadline | 1st day of anniversary month | N/A |
| Late Filing Penalty | Administrative dissolution | N/A |
| Reporting Method | Online or mail | N/A |
| Information Disclosure | Basic company details | None after formation |
Compliance Timeline and Deadlines
Wyoming LLCs follow a yearly compliance cycle. You'll need to file your first annual report the year after formation [1]. The state lets you file up to one year ahead [1], which helps businesses that like to handle paperwork early.
New Mexico LLCs have a simple compliance timeline - you won't need any more state filings after formation [2]. However, both Wyoming and New Mexico LLCs must meet federal reporting requirements based on their tax structure.
New Mexico proves to be a great choice for entrepreneurs who want minimal paperwork, especially when you have non-resident owners or businesses with few assets in the state [15].
Banking and Business Operations: Practical Considerations
Daily operations between Wyoming and New Mexico LLCs show major differences. These differences affect how entrepreneurs access banking services, meet compliance requirements, and manage operational costs.
Setting Up Business Bank Accounts in Each State
Wyoming and New Mexico LLCs need similar documents to open bank accounts. Banks usually ask for:
- Articles of Organization/Certificate of Formation
- EIN (Employer Identification Number)
- Operating Agreement
- Photo ID for all members with 25%+ ownership [26]
Non-resident owners face bigger hurdles with banks in both states. Online banks have noticed these challenges and now let businesses open accounts without being physically present in the US [27]. A separate business account helps you retain limited liability protection in both states.
Operating as a Foreign LLC
Wyoming LLCs doing business in New Mexico must register as foreign LLCs there. The same applies in reverse. This leads to extra costs and reporting needs. To cite an instance, see how a New Mexico LLC operating in Texas needs foreign LLC registration, which costs $750 [28].
Registered Agent Requirements and Costs
| Requirement | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Resident Agent Required | Yes | Yes |
| Self as Agent Option | Yes | Only if resident |
| Commercial Agent Cost | $125+ annually | $100-$300 annually |
| Address Privacy Option | Available | Available |
| Physical Address Required | Yes (no PO boxes) | Yes (no PO boxes) |
Wyoming LLC owners can act as their own registered agents [9]. New Mexico requires all LLCs to have a registered agent who handles processes in the state [9]. Changing registered agents in New Mexico costs $25 for corporations and $20 for LLCs [29].
Business License Requirements
Wyoming doesn't need a general state-level business license [30]. Businesses just need specific industry licenses and a Sales and Use Tax License that costs $60 [31].
New Mexico also skips the general state business license requirement [13]. However, businesses must register with the Taxation and Revenue Department [8]. Both states need local business licenses based on location and industry. Your business activities might require health permits, professional licenses, and zoning permits in either state.
Comparison Table
1. Formation & Original Costs Comparison
| Feature | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Original Filing Fee | $100 ($104 online) | $50 |
| Processing Time - Online | Immediate | 1-3 business days |
| Processing Time - Mail | 4-5 weeks | 2-3 weeks |
| Name Reservation (Optional) | $60 | $20 (120 days) |
| Series LLC Option | Yes ($10 per child series) | Not available |
| Registered Agent Fee | $0 (self) or $125+ (service) | $100-$300 (required) |
2. Tax Structure
| Tax Type | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Corporate Income Tax | None | 4.8%-5.9% |
| Personal Income Tax | None | 1.7%-4.9% |
| Franchise Tax | None | $50 flat fee |
| Sales/Use Tax License | $60 | Industry-specific ($50-$100) |
| Entity-Level Tax Option | Not available | Available (4.9%) |
3. Privacy & Asset Protection
| Feature | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Owner Privacy | High (no public listing) | Highest (complete anonymity) |
| Single-Member LLC Protection | Strong statutory protection | Limited protection |
| Charging Order Protection | Strongest (exclusive remedy) | Simple protection |
| Asset Seizure Prevention | Strong statutory protection | Limited protection |
| Legal System for Business | 100+ years old | Less developed |
4. Annual Compliance & Maintenance
| Requirement | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Annual Report | Required | Not required |
| Annual Report Fee | $60 minimum | $0 |
| Filing Deadline | Anniversary month | N/A |
| Late Filing Penalty | Administrative dissolution | N/A |
| Ongoing Compliance Cost | Higher | Minimal |
5. Banking & Operations
| Feature | Wyoming LLC | New Mexico LLC |
|---|---|---|
| Self as Registered Agent | Allowed | Only if resident |
| Physical Address Required | Yes (no PO boxes) | Yes (no PO boxes) |
| General Business License | Not required | Not required |
| Industry-Specific Licenses | Required | Required |
| Non-Resident Friendly | Yes | Yes |
Best Suited For:
Wyoming LLC:
- Companies that need robust asset protection
- Businesses with major US operations
- Organizations needing quick formation
- Owners who value legal security and precedent
New Mexico LLC:
- Business owners who value privacy
- Companies looking to minimize maintenance costs
- Owners based outside the US
- New ventures with tight budgets
- Businesses seeking fewer compliance requirements
Conclusion
Wyoming and New Mexico each offer unique benefits when you're setting up an LLC. Wyoming shines with its reliable asset protection and 150-year old business courts. The state provides complete charging order protection. Business owners pay $100 as the original filing fee and $60 for minimum annual reports. The state processes everything online right away.
New Mexico makes things easier on your wallet with a $50 original filing fee. You won't need to file annual reports either. On top of that, it stands alone as the only state that keeps ownership information private. This mix of low costs and privacy makes perfect sense, especially when you have non-resident owners or startups with tight budgets.
Your tax situation plays a big role in choosing between these states. Wyoming doesn't charge state-level corporate or personal income taxes, which helps profitable businesses thrive. New Mexico's corporate tax rates range from 4.8% to 5.9% plus a $50 franchise tax. Some businesses benefit from the state's entity-level tax election flexibility.
Your specific business needs should guide your choice:
Wyoming works best if you:
- Need strong asset protection
- Run significant US operations
- Want secure legal precedents
- Don't want to pay state-level taxes
New Mexico fits better for:
- Business owners who value privacy
- Startups watching their expenses
- Owners living outside the US
- Companies wanting fewer compliance rules
Both states welcome non-US residents and make LLC formation straightforward. The right choice comes down to balancing privacy needs, asset protection, and ongoing compliance costs against your startup budget.
FAQs
Wyoming LLCs offer strong asset protection and no state income taxes, while New Mexico LLCs provide superior privacy and lower maintenance costs. Wyoming has a $100 initial filing fee and $60 annual report fee, whereas New Mexico charges $50 for filing with no annual reporting requirements.
New Mexico offers the highest level of privacy for LLC owners. It's the only state that doesn't require disclosure of any individual names to the state, not even ownership information. This makes New Mexico ideal for entrepreneurs who prioritize anonymity in their business structure.
Wyoming has a zero-tax structure with no corporate income tax, personal income tax, or franchise tax. New Mexico, on the other hand, imposes corporate income tax rates between 4.8% to 5.9% and a $50 annual franchise tax. This makes Wyoming more advantageous for businesses expecting significant profits.
Wyoming requires an annual report filing with a minimum fee of $60, due on the first day of the anniversary month of formation. In contrast, New Mexico has no annual reporting requirements for LLCs, which significantly reduces ongoing administrative burdens and costs.
Wyoming offers stronger asset protection, particularly for single-member LLCs, with robust charging order protection designated as the "exclusive remedy" for creditors. New Mexico provides basic protection but lacks the comprehensive statutory safeguards found in Wyoming, making Wyoming preferable for businesses prioritizing asset protection.
References
[1] - https://www.llcuniversity.com/wyoming-llc/annual-report/
[2] - https://www.llcuniversity.com/llc-filing-fees-by-state/
[3] - https://www.doola.com/blog/wyoming-llc-taxation-for-non-us-residents/
[4] - https://nomadcapitalist.com/finance/new-mexico-vs-wyoming-llc-comparison/
[5] - https://oandgaccounting.com/resources/tax-guide-for-foreign-owned-us-disregarded-entity-wyoming-llc-target-us-or-non-us-clients-2024-update/
[6] - https://wyomingllcattorney.com/Form-a-Wyoming-LLC/Privacy-and-Anonymity
[7] - https://bizee.com/new-mexico-llc/fees-filing-requirements
[8] - https://www.wolterskluwer.com/en/solutions/bizfilings/state-guides/new-mexico-llc-requirements
[9] - https://www.doola.com/blog/wyoming-vs-new-mexico-llc/
[10] - https://nchinc.com/compare-your-state/wyoming/vs-new-mexico
[11] - https://www.howtostartanllc.org/which-is-better-a-wyoming-llc-or-a-new-mexico-llc/
[12] - https://venturesmarter.com/file-llc-taxes/new-mexico/
[13] - https://cindysnewmexicollcs.com/New-Mexico-Registered-Agent/Business-License
[14] - https://nomadcapitalist.com/finance/llc-taxation-for-non-us-residents/
[15] - https://llc.services/wyoming-vs-new-mexico-llc/
[16] - https://nomadoffshoreacademy.com/the-key-differences-between-llcs-in-new-mexico-wyoming-and-delaware/
[17] - https://wyomingllcattorney.com/Form-a-Wyoming-LLC/vs-Nevada-Delaware-New-Mexico
[18] - https://wyomingcompany.com/new-llc-law/
[19] - https://llcattorney.com/states/wy/llc-asset-protection-wyoming
[20] - https://www.avvo.com/legal-answers/does-new-mexico-offer-the-same-level-of-charging-o-4251815.html
[21] - https://www.wolterskluwer.com/en/solutions/bizfilings/state-guides/wyoming-llc-requirements
[22] - https://wyomingllcattorney.com/Form-a-Wyoming-LLC/Annual-Fees-and-Requirements
[23] - https://www.llcuniversity.com/new-mexico-llc/annual-report/
[24] - https://www.northwestregisteredagent.com/annual-report/new-mexico
[25] - https://llcattorney.com/states/nm/llc-benefits-new-mexico
[26] - https://www.bankofamerica.com/smallbusiness/deposits/resources/documents/limited-liability-company/
[27] - https://wyomingllcattorney.com/Blog/LLC-Bank-Account-Requirements-and-Rules
[28] - https://www.llcuniversity.com/new-mexico-llc/
[29] - https://wyomingllcattorney.com/Blog/New-Mexico-Registered-Agent
[30] - https://www.myllc.com/wyoming-llc-business-licenses-permits.aspx
[31] - https://www.northwestregisteredagent.com/llc/wyoming/cost