A recent LawTrades user asked: What is the best state to form an LLC? I guess it the best to operate blogs/forums and similar online business under the name of an LLC so that there is the least risk. But was wondering just to know what would be the real differences between an NM LLC and WY LLC. Which one would be cost effective and easier to manage?
Typically the “better” state to form a limited liability company (LLC) in would be the state you’re conducting business in. However, this is likely inapplicable because you are “not based in USA” (unless, of course, most of your blog’s proceeds are coming from either Wyoming or New Mexico). Thus, we’ll highlight a few differences between forming an LLC in Wyoming and New Mexico.
New Mexico: There is no annual corporate tax for New Mexico LLCs. Likewise, there is no state income tax if the LLC receives no income from within New Mexico. New Mexico provides a ton of privacy for members as it will never ask who owns or manages the LLC. So as long as you use a Registered Agent, you can form a New Mexico LLC and there will be no public record of the ownership in the state database. This can be complicated by having to obtain an EIN or opening a company bank account but on the state level, there is no public database of ownership. Finally the state fee is only $50. No annual reports or fees are required to be filed with New Mexico either.
Wyoming: Filing fees ($100) are a little more than NM. Annual fees are $50 (compared to 0 for NM). The annual requirements include maintaining a Wyoming Registered Agent and filing your Annual Report.
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