If your top priority is keeping costs low and your name off the public record, you are probably comparing Wyoming and New Mexico. Both are excellent for that. Here is the honest difference.
The core difference
New Mexico is the only US state with zero annual report and zero annual fee for LLCs. Once you pay the $50 filing fee, you owe nothing else to the state, ever.
Wyoming charges $60 per year to keep the LLC in good standing. That's $300 over five years versus $0 for New Mexico.
Privacy
Both states do not publish member or manager names. Both let you use a Registered Agent address as the principal business address.
In practical terms, the privacy is equivalent.
Banking acceptance
Wyoming is one of the most recognized LLC states. Every US neobank and most traditional banks have processed thousands of Wyoming LLCs.
New Mexico is recognized but less common. Some banks will ask extra questions about why you chose New Mexico if you are a non-resident. It is rarely a blocker, but it adds friction.
Reputation with payment processors
Stripe, PayPal and Wise all accept both. No difference in approval.
Verdict
Choose New Mexico if: you want the absolute cheapest long-term LLC and you are comfortable with slightly more friction at the bank account stage.
Choose Wyoming if: you want the smoothest banking experience and the small extra $60/year is not a concern.
Frequently asked questions
Does New Mexico really have no annual fee?+
Correct. New Mexico LLCs have no annual report and no annual franchise tax. You only pay your Registered Agent fee each year (around $29-$125).
Will Mercury or Relay approve a New Mexico LLC?+
Yes, they do approve New Mexico LLCs. Approval rates are slightly lower than Wyoming and you may be asked extra verification questions, but most legitimate businesses get approved.
Can I switch from New Mexico to Wyoming later?+
Yes, through a process called domestication. It costs around $200-$400 in state fees plus our service fee.
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