Cheapest Way to Form a US LLC From Abroad, Line by Line

The cheapest way to form a US LLC from abroad is to file in New Mexico or Wyoming through a $0-plus-state-fee formation service, get your EIN for free from the IRS, and skip every add-on except the registered agent you are legally required to have. Done that way, a non-resident can realistically get a working LLC for roughly $100 to $250 in the first year.

Bottom line

• The state filing fee and registered agent are the only two costs you cannot avoid.
• Everything else (EIN, operating agreement, “compliance packages”) is either free or optional.
• New Mexico is the cheapest state over time; Wyoming is a close second with better name recognition.

Below is the full line-by-line budget, what each item is for, and where people from abroad overpay.

Line 1: The state filing fee

The state filing fee is the one-time charge your chosen state collects to create the LLC, and it ranges from about $50 to several hundred dollars depending on the state. For a non-resident with no US location, the cheapest sensible picks are New Mexico and Wyoming.

The New Mexico Secretary of State charges $50 to file Articles of Organization, and New Mexico requires no annual report for LLCs. The Wyoming Secretary of State charges $100 to file, and Wyoming requires an annual report with a license tax that starts at $60. Delaware charges an annual franchise tax of $300 for every LLC, which alone makes it the expensive option for a one-person online business.

Fees change. Confirm the current amount on the Secretary of State website before you file.

If you want the full state comparison, read Wyoming vs New Mexico LLC and the best state to form an LLC for non-residents.

Line 2: The registered agent (required, not optional)

A registered agent is a person or company with a physical street address in the state of formation who accepts legal and government mail for your LLC. Every state requires one, and as a non-resident you cannot be your own agent, so this line is unavoidable.

The realistic price range is $0 for the first year (bundled with formation) and then about $100 to $150 per year after that.

• Bizee includes a free registered agent for the first year with its $0-plus-state-fee formation, then renews at its standard annual rate.
• Northwest Registered Agent charges $39 plus the state fee for formation and includes a year of registered agent service, renewing at $125 per year.

Northwest’s agent service is the reason many non-residents choose it even though it is not the absolute cheapest. Northwest lets you use its address on the public filing instead of your own, and it scans all mail into your dashboard the day it arrives, which matters when you live ten time zones away. Learn more in what is a registered agent.

Line 3: The EIN (free, do not pay $99 for it)

The EIN is free. The IRS does not charge anything to issue an Employer Identification Number, and a non-resident without a Social Security Number can get one by submitting Form SS-4 by fax or mail.

Formation services charge anywhere from about $70 to $250 to do this for you. That fee is paying for convenience and speed, not for the number itself.

Here is the honest trade-off:

• Do it yourself: $0. Fax the SS-4 to the IRS international line and expect a wait of several weeks for the letter to come back. Our walkthrough: how to get an EIN without an SSN and how to fax the SS-4 from abroad.
• Pay a service: Worth it only if you cannot fax from your country or you need the EIN quickly to open a bank account.

If your budget is tight, this is the single biggest line to cut.

Line 4: The operating agreement (free template is fine)

An operating agreement is the internal document that states who owns the LLC and how it is managed. No state requires you to file it, and a single-member LLC owned by one person from abroad can use a plain template.

Formation services sell these for $40 to $100 as an add-on. For a one-owner LLC, decline it. Bizee and Northwest both give you a basic template with formation, and a bank that asks for an operating agreement will accept a standard single-member version.

Pay for a lawyer-drafted agreement only if you have multiple owners, investors, or an unusual profit split.

Line 5: A US address (usually $0 to $30/month)

Is a US address required to form an LLC from abroad? No. The registered agent’s address satisfies the state, and the IRS accepts a foreign mailing address on the SS-4.

Where you may need one later is for banking, payment processors, or marketplaces. A virtual mailbox runs about $10 to $30 per month. Northwest’s business address option piggybacks on its registered agent service, which is often the cheapest route if you already use it. Details in US address for your LLC.

Skip this line until a bank or platform actually asks for it.

Line 6: Banking (free, but choose carefully)

Opening the account itself should cost $0. The real cost of banking as a non-resident is time and rejection, not fees. Online business banks and fintech platforms that work with non-resident LLC owners typically have no monthly fee on a basic account, and most will want your Articles of Organization, EIN letter, and passport.

What they will not accept is an LLC with no EIN yet, which is why the EIN timing matters if you are doing it yourself. See US business bank account for non-residents.

Line 7: Ongoing compliance (small, but not zero)

What does a US LLC cost each year after formation? Expect the registered agent renewal plus whatever your state charges, which for New Mexico is nothing and for Wyoming is a $60 minimum annual report.

Then there is the federal paperwork. A foreign-owned single-member LLC must file Form 5472 attached to a pro forma Form 1120 every year, even with zero US income. The IRS penalty for not filing Form 5472 is $25,000, so this is not a line to save money on. A CPA who handles this for non-residents commonly charges a few hundred dollars. Our guide: Form 5472 for foreign-owned LLCs.

Formation services sell “compliance packages” at $100 to $300 per year that mostly send reminder emails. You can set those reminders yourself. Use the US LLC annual compliance checklist instead.

The bare-minimum budget, totaled

Here is what a non-resident actually pays on the cheapest reasonable path, assuming New Mexico and a $0-plus-state-fee formation service:

Year two and beyond in New Mexico: the registered agent renewal (roughly $100 to $150) plus your Form 5472 preparation. In Wyoming, add the $60 annual report.

Prices above are the ones we are confident about as this is written, but services change their plans. Check the current pricing page of whichever service you use.

Who should pick Bizee

Bizee is the pick if your single goal is the lowest cash outlay. The $0 formation plan plus a year of free registered agent means you pay the state and nothing else. Expect upsells during checkout for the EIN, operating agreement, and compliance add-ons. Decline all of them and you have the cheapest possible setup.

The trade-off is that Bizee’s registered agent renewal is a recurring cost you will want to compare against Northwest’s at the one-year mark. Our full take: Bizee review and is Incfile (Bizee) legit for non-residents.

Start your LLC with Bizee for $0 plus the state fee.

Who should pick Northwest Registered Agent

Northwest is the pick if you are willing to spend $39 more upfront to get a registered agent you will actually keep. You get mail scanning, the option to use Northwest’s address on public records, and no upsell pressure at checkout. For someone living abroad, the mail handling alone usually justifies the difference.

Northwest also offers EIN help for non-residents as a paid add-on, which is useful if faxing from your country is impractical. Read Northwest Registered Agent review and the head-to-head in Bizee vs Northwest Registered Agent.

Form your LLC with Northwest for $39 plus the state fee.

Where non-residents overpay

The most common ways people from abroad spend more than they need to:

• Choosing Delaware for prestige. The $300 annual franchise tax is permanent. Unless an investor requires Delaware, it is a tax on a feeling.
• Buying the EIN. The IRS issues it for free. Pay only if speed or fax access is a real problem.
• Premium formation tiers. “Gold” and “Platinum” packages bundle things you can get free or do not need.
• Compliance subscriptions. A calendar reminder does the same job.
• Multiple services for one job. Pick one formation service and let it handle formation and registered agent together.

This article is general information, not legal or tax advice. Confirm your specific situation with a CPA or attorney, especially on Form 5472 and any tax treaty between your country and the US.

FAQ

What is the absolute cheapest state to form a US LLC from abroad?

New Mexico, because the filing fee is $50 and there is no annual report. Wyoming costs $100 to file and $60 minimum per year, but it is more widely recognized by banks and platforms, which can save you friction later.

Can I form a US LLC from abroad without a formation service?

Yes. You can file directly with the Secretary of State online, but you will still need to hire a registered agent separately, which usually costs about the same as a $0-plus-state-fee service that includes one. For most non-residents, the service route is cheaper or equal and far simpler.

Do I need to pay for an EIN as a non-resident?

No. The IRS issues EINs for free, and a non-resident can apply with Form SS-4 by fax or mail without a Social Security Number. Services charge for doing the paperwork and following up, not for the number.

What recurring costs should I budget for after the first year?

Plan for the registered agent renewal (about $100 to $150), the state annual report if your state has one (Wyoming’s starts at $60; New Mexico has none), and a CPA for the Form 5472 filing. That is typically a few hundred dollars per year all in.

Ready to file?

If you want the lowest upfront cost, form your LLC with Bizee and pay only the state fee. If you want a registered agent built for people who live abroad, go with Northwest Registered Agent for $39 plus the state fee. Either way, file in New Mexico or Wyoming, get your EIN for free, and keep the rest of your money for the business itself.