Aurages

The best state to form a US company

There is no best state for everyone — there is a best state for your business. Three numbers separate them: the filing fee, what recurs every year, and how long it takes. These are our live figures for every state we file in, and they are the same ones that price your order.

Formation fees and turnaround compared across US states
StateLLC filingRecurringTurnaroundState income taxBest for
DelawareDelaware$110$35010 business daysNoStartups · Fundraising · C-Corp
WyomingWyoming$100$605 business daysNoE-commerce · Amazon FBA · Solo founders
New MexicoNew Mexico$50$07 business daysYesLowest cost · Side projects · Tight budgets
FloridaFlorida$125$138.757 business daysNoTrade · Real estate · Local services
TexasTexas$300$07 business daysNoEnergy · Logistics · Companies with physical presence
NevadaNevada$425$3507 business daysNoAsset protection · Privacy
ColoradoColorado$50$253 business daysYesTech · Fast, low-cost formation
CaliforniaCalifornia$70$82015 business daysYesOnly companies with an office or staff in California
New YorkNew York$200$3414 business daysYesFinance · Media · In-state operations

“Annual fees” combines the annual report and the minimum franchise tax. These are government charges alone, paid to the state, and each state changes them without notice. The registered agent is included in Aurages plans.

The three states most of our clients choose

Read the state page before deciding — each one sets out its own obligations and deadlines.

Choosing a state, in three questions

  1. Do you have a physical presence in one state?

    An office, an employee, or inventory in a warehouse. If yes, form there — or be ready to register as a foreign entity in that state anyway. If no, you are free to choose, and the next question decides it.

  2. Are you planning to raise?

    If you will take venture money or issue equity to a team, Delaware and a C-Corp are what investors expect. If you sell a product or a service and keep the profit, the third question is the one that matters.

  3. What does it cost over five years, not one?

    The filing fee is paid once; the annual fee is paid five times. A $200 gap between two states is $1,000 over five years — usually larger than the difference in formation cost. That is why the table above shows both columns side by side.

Questions about choosing a state

Should I form in the state where I live?

You do not live in the United States, so the question does not apply to you in the form it is usually asked. The practical rule for a non-resident: if you have no office, no employees and no inventory in a particular state, you are free to choose any of them — and the cheapest, lightest one is usually right. If you do have a real presence somewhere, an Amazon FBA warehouse for instance, you may owe a foreign qualification in that state whatever state you formed in.

Is Delaware always the best choice?

No. Delaware is the standard for companies raising venture capital, because funds know its law and its Court of Chancery. But a solo e-commerce LLC pays an annual franchise tax in Delaware that it would not pay in Wyoming or New Mexico, and gets nothing it needs in return. Choose Delaware if you plan to raise or to issue equity — not for the reputation.

Which state is cheapest?

Usually New Mexico, because it requires no annual report from LLCs — no recurring state fee at all after the year of formation. Wyoming follows, with a low annual fee in exchange for stronger owner privacy and a clearer standing with banks. The table above shows both numbers side by side.

Can I move my company to another state later?

Yes — by domestication in states that allow it, or by forming a new entity and transferring assets to it. Both routes cost time and fees and sometimes mean updating the bank account and the EIN, which is why the first choice is worth a few minutes of thought now.

Does federal tax change depending on the state?

No. Your federal obligations at the IRS are identical whichever state you form in: the annual return, and Form 5472 with a pro-forma 1120 for a foreign owner where it applies. What changes by state is the annual report, the franchise tax, state income tax — and any beneficial-ownership register the state has introduced since FinCEN's federal exemption in March 2025.

Still torn between two states?

The formation steps show each state's fees and turnaround before you pay anything, and you can change your choice up to the last moment.

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