Delaware vs Wyoming vs New Mexico LLC: Which State for Asset Protection?

Why pick a state other than your own?

Three reasons people form LLCs outside their home state: (1) anonymity (your home state may publish member names), (2) asset-protection statutes that are friendlier than your home state's, (3) lower fees if your business doesn't physically operate anywhere in particular.

But here's the catch: if your business actually operates in your home state (you live there, your customers are there, your office is there), you also have to register the LLC as a foreign entity in your home state. That means double the registered-agent fees, often double the annual filings.

If you're a digital-only business with no physical operating state, the math works out. If you're running a brick-and-mortar in California, forming a Wyoming LLC just adds paperwork.

Delaware: the gold standard, for a price

• Filing fee: $110
• Annual franchise tax: $300/yr (flat)
• Annual report: not required
• Anonymity: members not on public filings
• Court of Chancery: the best business case law in the US — predictable rulings on LLC disputes
• Best for: large entities, holding companies, real-estate stacks where case law matters

Wyoming: cheap + anonymous + asset-protection statutes

• Filing fee: $100
• Annual report: $60 minimum (scaled by WY assets)
• Anonymity: members not on public filings
• Charging order: sole remedy for creditors (strong asset protection)
• No state income tax
• Best for: real-estate investors, asset-protection trusts, anonymity seekers on a budget

New Mexico: cheapest + most anonymous, but less battle-tested

• Filing fee: $50
• Annual report: not required
• Anonymity: members not on public filings
• No franchise tax
• Less established LLC case law than DE or WY
• Best for: simple holding LLCs where cost is the priority and case law isn't central

Quick decision tree

Operating in California (or any high-fee state) and just want anonymity? Form in NM or WY for the holding entity, then have it own a CA LLC where you actually operate. The CA LLC pays the $800/yr franchise tax. The NM/WY parent stays cheap and private.

Real estate portfolio with serious asset-protection needs? Wyoming for the holding, then state-specific LLCs for each property.

Tech startup planning to raise from US VCs? Delaware C-corp, not an LLC — VCs require it.

Nomadic entrepreneur with no operating state? New Mexico for cost, Wyoming for case law.

What about your address?

All three states require a registered agent with an address in that state. You don't live there, so you hire a registered-agent service ($50-$300/yr depending on state and provider).

If you also need a real address for your business operations (Stripe, banking, vendor invoices), that's separate. Our Los Angeles address fills that role for many DE/WY/NM LLC owners — they have a non-CA holding LLC, but they live and operate in LA, and they need a real LA address for their day-to-day.