Best State for Ecommerce Sellers to Form an LLC (Lowest Fees 2026)

If you form your LLC in the wrong state, you're burning $500 yearly, and here's the fix. Here's the problem. Most sellers pick Delaware by default. Wyoming LLCs cost $62 per year in state fees, the lowest in America.

New Mexico has zero annual reports and zero publication requirements, saving you 4 hours yearly. Every state charges different annual fees, filing deadlines, and hidden costs. You're running a Shopify store doing $180,000 yearly revenue. >> [music] >> You formed in California because you live there.

Now you owe $800 minimum franchise tax every single year, even if you made zero profit. That's $8,000 wasted over 10 years. The right state saves you real money, cuts compliance work to 15 minutes per year, and protects your assets the exact same way. In 2026, >> [music] >> three states dominate for e-commerce sellers, Wyoming, New Mexico, and Delaware.

Each wins in different scenarios. Most people fail here. They Google best LLC state and land on a blog from 2019 that says Delaware is the gold standard. Delaware is great for venture-backed startups raising millions.

But for e-commerce sellers, Delaware charges $300 franchise tax yearly plus a $90 annual report, totaling $390 per year. Wyoming costs $62 total. >> [music] >> That's a $328 yearly difference. Over 5 years, you've paid Delaware an extra $1,640 for zero extra benefit.

>> [music] >> Do not form in Delaware unless you're raising VC money or going public. Wyoming is the winner for 80% of e-commerce sellers. The state fee is $62 per year. No income tax.

No franchise tax. Formation takes 1 to 3 business days. Bastian Formations handles Wyoming LLCs for $249 all in, including [music] registered agent service for year one. After that, registered agent renewal is $99 yearly.

Your total annual cost in year two onward is $62 state fee plus $99 [music] agent, so $161 per year. New Mexico is the stealth option. Zero annual report. >> [music] >> Zero publication requirement.

The state charges $50 bi-annual report every 2 years, so $25 per year average. This is important. If you hate [music] paperwork and want to file nothing for 24 months, New Mexico wins. Bastian Formations offers New Mexico LLCs with the same $99 per year registered agent service.

Your annual cost is $25 state fee plus $99 agent, totaling $124 per year. Here's the problem. Path A is forming in your home state because it feels easier. California sellers pay $800 yearly.

New York sellers pay $25 bi-annual, but face complex publication rules costing $1,200 upfront. Path B is forming in Wyoming or New Mexico. You pay $124 to $161 per year, file one simple form, and you're done. Same liability protection, 83% lower cost.

If you sell on Amazon FBA and store inventory in multiple states, [music] you might trigger nexus and need to register as a foreign LLC in those states anyway. But your home state still matters. Form the LLC in Wyoming or New Mexico first. Then register foreign only in states where you have physical inventory for 30-plus days or employees.

Most FBA sellers using Amazon's warehouses do not need foreign registration because Amazon owns the warehouses, not you. [music] Check your state's economic nexus rules for sales tax [music] separately. That's different from LLC registration. Bastian Formations can quote custom state formation same day if you need a foreign filing.

>> [music] >> The base Wyoming or New Mexico LLC stays your primary entity, keeps your annual fees under $200, and you add [music] foreign states only as needed. What is the annual fee for an LLC in state [music] name? Does state name require publication or annual reports? Wyoming, $62 per year, lowest state fee.

New Mexico, $25 per year, zero annual paperwork. Avoid Delaware unless raising venture capital. Form your Wyoming or New Mexico LLC with Bastian Formations today at bastianformations. com.

Visit https://bastianformations. com.