When it comes to choosing where to register a US LLC, many prospective business owners debate between a Wyoming vs a New Mexico LLC.
In this article, we’re going to explore both options and share the pros and cons and important considerations when it comes to opening bank accounts.
Of course, if you already have a US LLC you can also use our other free resources to navigate different aspects of managing your LLC, including how to request an EIN verification letter 147c, open bank accounts, and much more.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Wyoming vs New Mexico
- How to Choose the Right State For Your LLC
- Frequently Asked Questions
- Ready to Explore Your Options?
Wyoming vs New Mexico LLC
In the following sections, we will take a look at both the Wyoming and New Mexico LLCs to see how they compare.
However, we have also covered both LLCs in greater detail in past articles. These past articles include detailed assessments of each LLCs pros and cons, banking challenges, and how they compare to other popular US LLC options like Delaware LLCs.
With this in mind, if you are just starting your search for the right US LLC, please feel free to use our other free articles from the US banking section available above.
Wyoming LLCs are among the most popular for foreign non-residents looking to register an LLC in the United States. The reason for their increase in popularity is that they are less expensive to set up, less expensive to maintain, and benefit from enhanced privacy.
In other words, you can set up a US LLC in Wyoming for a smaller investment than elsewhere and still capture the same benefits. And, at the same time, you will be able to protect your personal information in one of the most litigious countries in the world, the US.
New Mexico LLC
Alternatively, New Mexico LLCs are also popular, however, they tend to be less commonly used than Wyoming LLCs. Interestingly, they offer the same level of privacy as a Wyoming LLC while costing only slightly more.
That said, as a result of being less common, the New Mexico LLC can be slightly more difficult to bank. The reason for this is that bankers outside of New Mexico tend to be less familiar with the structure. And, as a result, having a New Mexico LLC over a Wyoming LLC could result in additional questioning during the account opening process.
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How to Choose the Right State For Your LLC
If you are in the process of choosing the right state for your US LLC, it’s important to consider the following:
- Are you comfortable with your name being publicly tied to the LLC?
- How much are you willing to pay to register the LLC?
- How much are you willing to pay to maintain the LLC annually?
- Will you require bank account opening for the LLC?
- Do you intend to raise capital from investors at any point in the future?
- Does the reputation of the state where you register matter to you?
- Do you have ties to any of the available options?
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking to register an LLC. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Is Wyoming the Best State for an LLC?
Whether Wyoming is the best state for an LLC will depend on the specific objectives of the individual members, their reasons for wanting to form a US LLC, their banking requirements, and much more. With this in mind, it’s important that individuals planning to form a US LLC consider all available options.
Which State Is Best for an LLC?
In order to determine the best state for an LLC, you should consider the business objectives, long-term goals such as capital raising, privacy objectives of the members, and where the LLC will be engaged in business. In doing so, you will be in a position to identify the best possible state for an LLC for your specific requirements.
Does an LLC Pay Taxes in New Mexico?
Whether a New Mexico LLC is required to pay taxes will depend on a number of different variables. However, it’s important to remember that a New Mexico LLC is a pass-through entity, so the income attributed to each member of the US is reportable and liable for taxes on the personal level.
With this in mind, if you are trying to navigate tax considerations related to your LLC, it’s important that you consult a qualified tax professional to help you navigate the various considerations.
Ready to Explore Your Options?
If you would like assistance navigating your banking options in the United States, we can help.
You can access GlobalBanks USA, our dedicated US account opening service, in just a few clicks.
GlobalBanks USA involves 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions before deciding whether you would like to move forward, don’t hesitate to contact us directly!