This guide is educational. State fees change, so confirm them with each Secretary of State before you file.
Quick Answer
- Choose Wyoming if you want a respected state, strong privacy and a simple annual report.
- Choose New Mexico if you want the lowest startup and yearly cost.
- Neither state changes your federal Form 5472 duty or your Amazon eligibility.
State Fees Compared
| Item | Wyoming | New Mexico |
|---|---|---|
| Filing fee | $102 (includes a $2 online fee) | $52 |
| Annual report | $62 minimum | None |
| State income tax on the LLC | None | None for an LLC with no New Mexico operations |
| Five-year state cost | About $350 | About $52 |
| Public listing of members | Not required | Not required |
Our fee figures match our Wyoming LLC guide and New Mexico LLC guide.
Privacy and Reputation
Both states do not require a public list of LLC members. This keeps your name off public registries. Wyoming has a long record of business-friendly LLC law, which some banks and partners recognize.
New Mexico is a good low-cost choice when you want a simple structure. It has no annual report, so there is one less deadline to track.
Amazon, Stripe and Banking
Amazon, Stripe and fintech banks care about your documents and your business model. They do not require a specific state. A clean website, a real address and consistent paperwork matter more than the state name.
Read our guide on Mercury vs Relay for Pakistani LLC owners before you apply for a bank account.
Compliance Is Similar in Both States
- A single-member LLC with a foreign owner files Form 5472 with a pro forma 1120 each year.
- You still need an EIN from the IRS.
- You need a registered agent in the state you choose.
- You still declare foreign income in Pakistan.
If you missed a filing, read how to fix a missed Form 5472.
How Formation Works in Either State
- Pick the state and a unique LLC name.
- Appoint a registered agent in that state.
- File the Articles of Organization with the Secretary of State.
- Prepare an operating agreement for your records.
- Apply for an EIN with the IRS using Form SS-4.
- Open a business bank account and set up your payment tools.
- Set calendar reminders for Form 5472 and the state annual report.
The steps are the same in both states. Only the state fee and the annual report change.
Costs Beyond the State Fee
- Registered agent: you need one every year. Prices vary by provider.
- Formation service: our packages start at $149 plus state fees.
- Annual tax filing: Form 5472 with a pro forma 1120 needs preparation each year.
- Banking and payment tools: some providers charge monthly or transaction fees.
Compare the total yearly cost, not only the filing fee. A low state fee can be a small part of the full budget.
Which State Fits Which Seller?
| Seller profile | Better fit | Why |
|---|---|---|
| Solo freelancer with low expenses | New Mexico | Lowest startup cost and no annual report |
| Amazon private label seller planning to scale | Wyoming | Strong reputation and a simple annual report |
| Agency selling services to US clients | Wyoming or New Mexico | Both work. Choose by budget and preference |
| Founder planning to raise venture funding | Delaware | Investors often prefer Delaware |
Common Mistakes When Choosing a State
- Choosing only by the lowest fee and ignoring long-term plans.
- Believing a state name guarantees bank approval.
- Forgetting the annual report in Wyoming.
- Skipping Form 5472 because the LLC has no sales.
- Using a registered agent without checking renewal prices.
How to Decide
- If upkeep cost is your top concern, pick New Mexico.
- If you plan to grow, raise funds or want a stronger name, pick Wyoming.
- If you plan to raise venture capital, read our Delaware guide as well.
- If you are unsure, book a free call and we will compare them for your business.
Frequently Asked Questions
Is Wyoming better than New Mexico for Amazon sellers?
Neither state is required by Amazon. Wyoming is popular for its reputation. New Mexico is popular for its low cost.
Can I change my LLC state later?
You can form a new LLC in another state or convert it, but this adds cost and paperwork. Choose carefully at the start.
Do I pay US income tax in these states?
A foreign-owned LLC with no US operations usually owes no state income tax in either state. Federal filing is still required.
Can I visit your Lahore office to decide?
Yes. Visit 16 Chohan Tower, Jail Road, Shadman II, Lahore, or book a call.
Official Sources
Always confirm fees and rules on the official websites.