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Find the Best Tax-Friendly State for Non-US Residents

Uncertain about state taxes for your non-US resident LLC? We break down tax-friendly options to save you money and simplify your business. Explore benefits and choose the ideal state for your LLC's success.

Best Tax-Friendly States for Non-US Resident LLCs

Are you a non-US resident looking to establish a Limited Liability Company (LLC) in the United States? Choosing the right state for your LLC can significantly impact your tax burden and overall business operations. This guide explores the benefits of forming an LLC in a tax-friendly state for non-US residents.

Key Considerations:

No State Income Tax: Several states levy no income tax, meaning your LLC wouldn't be taxed on its profits. This is a major advantage for non-resident owners who wouldn't be actively generating income within the state.

Pass-Through Taxation: LLCs are considered "pass-through entities." This means the LLC's profits or losses "pass through" to the individual members' tax returns, avoiding double taxation. Look for states that don't tax income generated outside their borders.

Low Sales and Property Taxes: While not the primary concern for non-resident owners, states with lower sales and property taxes can offer additional cost savings.

Top Tax-Friendly States for Non-Resident LLCs:

Here are some of the most popular choices for non-resident LLC owners due to their tax-friendly structures:

New Mexico

Tax Advantages: No state income tax on LLCs formed and operated outside of New Mexico. Pass-through taxation applies, further reducing tax burden.

Additional Benefits: Relatively low annual LLC fees and a growing startup ecosystem.



Tax Advantages: No state income tax, pass-through taxation, and no corporate income tax for LLCs. This means your LLC's profits wouldn't be subject to state income tax, and any profits or losses would "pass through" to your personal tax return, avoiding double taxation.

Additional Benefits: Business-friendly regulations and a relatively inexpensive annual LLC fee.


Tax Advantages: While Delaware does have a state income tax, it offers benefits like pass-through taxation for LLCs, and a well-established legal system known for being favorable to businesses.

Additional Benefits: A streamlined incorporation process and a prestigious address for your LLC.



Tax Advantages: No state income tax, pass-through taxation, and no corporate income tax for LLCs. Similar tax benefits to Wyoming, but with a larger and more established business environment.

Additional Benefits: A large pool of skilled workers and access to a broader market.

Not Sure what State is right for you?

Consult with our tax experts online

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