The best state to form an LLC for privacy is Wyoming for most people, with New Mexico a close second if you want the lowest possible ongoing cost. Both keep member and manager names off the public formation documents, and both are cheap to maintain. Delaware offers similar formation-level privacy with a stronger court system but costs more every year. Nevada, despite its reputation, requires more disclosure and charges more in fees than any of the other three. The right pick depends on where you actually do business, how much maintenance you want, and a handful of federal rules that apply no matter which state you choose.
Wyoming
Wyoming’s Articles of Organization only require the LLC’s name and the name and address of a registered agent. No member names, no manager names, and no ownership percentages appear in any public filing.1Wyoming Secretary of State. Wyoming Code 17-29-201 – Wyoming Limited Liability Company Act Someone searching the state’s business database sees the registered agent and nothing else, and that agent can be a professional service rather than any owner.
The costs are among the lowest anywhere. Formation runs $100, and the annual report carries a license tax of $60 for businesses with minimal in-state assets.2Wyoming Secretary of State. Wyoming Secretary of State Business Division Filing Fee Schedule The annual report does ask for member or manager names and addresses, but Wyoming does not expose that information through its public online database. It functions as an internal compliance record, not a searchable disclosure.
Wyoming also has decades of case law interpreting LLC protections. For most people wanting privacy at a sensible price, this is the default choice.
New Mexico
New Mexico matches Wyoming’s formation-level privacy and adds something no other state offers: there is no annual report. The Articles of Organization require the company name, the registered agent’s name and address, the principal place of business, and whether the LLC is manager-managed, with no member or manager names in the filing.3Justia. New Mexico Code Chapter 53 Article 19 – Limited Liability Companies Because the state does not require a recurring report, it never collects or publishes ownership data after you form.
The initial filing fee is roughly $50, and because there is no annual report, there is no recurring state fee beyond keeping a registered agent. For a holding company or asset-protection entity you want to set up and leave alone, this is the cheapest option in the country.
One quiet tradeoff is worth knowing. Without annual reports, the state has no built-in way to prompt you to confirm your registered agent is still active. If that agent resigns or closes and you miss the notice, New Mexico can administratively dissolve the LLC for lack of a registered agent. The entity isn’t truly on autopilot forever; you have to watch the agent relationship yourself.
Delaware
Delaware’s Certificate of Formation requires only the LLC’s name and the name and address of a registered agent. Members and managers do not appear in any public filing.4Justia. Delaware Code 6-18-201 – Certificate of Formation The operating agreement, which usually names members and spells out ownership percentages, stays private with the company and is never filed with the state.5Delaware Division of Corporations. Frequently Asked Questions
Delaware’s distinguishing feature is its Court of Chancery, which handles business disputes with specialized judges rather than juries, and its charging order statute, which limits a creditor pursuing a member to a lien on distributions. The creditor cannot seize LLC property, force a sale, or gain management rights.
The drawback is the price. Formation is about $110, and every Delaware LLC owes a flat $300 franchise tax by June 1 each year regardless of revenue or activity.6Delaware Division of Corporations. LLC/LP/GP Franchise Tax Instructions That’s five times Wyoming’s annual cost and infinitely more than New Mexico’s. For a small holding company, that recurring expense rarely buys more privacy than Wyoming or New Mexico already provide.
Nevada and Its Reputation
Nevada’s reputation for privacy doesn’t match what the statute actually requires. The Articles of Organization require the name and address of each initial manager for a manager-managed LLC, or each initial member for a member-managed LLC.7Nevada Legislature. Nevada Code 86.161 – Articles of Organization Required and Optional Provisions Wyoming, New Mexico, and Delaware require none of that.
Nevada also demands an Initial List of Managers or Managing Members at formation and an updated annual list after that. Both are publicly searchable and include names and addresses.8Nevada Legislature. Nevada Code 86 – Limited-Liability Companies The only workaround is to set up a manager-managed LLC and hire a nominee manager whose name appears instead of yours, which adds cost and introduces its own problems. A nominee holds legal authority, their heirs can complicate control if they die, and the IRS still requires a real responsible party on the EIN application.
Nevada’s fees are also the highest of the four. The Articles cost about $75, the annual list is $150, and the required state business license runs $200 per year.9Nevada Secretary of State. State Business License – FAQ That’s $350 in annual maintenance before any nominee service fee, for weaker privacy than Wyoming offers at $60. You may also see the claim that Nevada doesn’t share information with the IRS. No credible legal source supports this. All states are subject to federal tax law, and the IRS can obtain state information through standard legal processes.
Where the Strategy Falls Apart: Foreign Qualification
If you form an LLC in Wyoming but operate your business in California, California requires you to register the Wyoming LLC as a foreign entity. Many states ask for the names and addresses of managers or members on that foreign qualification application. The anonymity you paid for in Wyoming gets disclosed in the state where you actually do business.
Activities that trigger foreign qualification in nearly every state include keeping a physical office, employing people in the state, owning or leasing commercial real estate, storing inventory, and regularly meeting clients or fulfilling orders there. If any of those describe your situation, you almost certainly need to register in your home state regardless of where you formed the LLC.
Foreign qualification also means paying in two states: the formation state’s annual fee plus whatever registration and ongoing fees your home state charges, which commonly run from $100 to several hundred dollars a year. The strategy really works only when the LLC doesn’t operate in any specific state. Classic examples are holding companies that own real estate through separate in-state entities, intellectual property holding companies, and passive investment entities. An active business with employees, an office, and local customers rarely gains much by forming out of state.
Federal Limits You Can’t Design Around
State-level privacy keeps your name off public business databases. It doesn’t hide you from the federal government or the banking system.
IRS
Every LLC that needs an Employer Identification Number files Form SS-4, which requires the name and Social Security number of a “responsible party” the IRS defines as the individual who ultimately owns or controls the entity. You can’t substitute a nominee or a registered agent.10Internal Revenue Service. Instructions for Form SS-4 The information isn’t publicly searchable, but the IRS always has a line back to a real person.
Banks
Federal anti-money-laundering rules require banks to identify and verify beneficial owners when a business opens an account. Under FinCEN’s Customer Due Diligence Rule, anyone who owns 25 percent or more of a legal entity, or exercises significant control, must be identified.11Financial Crimes Enforcement Network. Information on Complying with the Customer Due Diligence Final Rule The bank holds that information internally, so your public anonymity survives, but you can’t open a business account without revealing yourself to the bank.
Corporate Transparency Act
The Corporate Transparency Act originally required most LLCs to report beneficial owners to FinCEN, including names, dates of birth, addresses, and government-issued ID copies. In March 2025, FinCEN issued an interim final rule exempting all entities formed in the United States from beneficial ownership reporting.12Financial Crimes Enforcement Network. FinCEN Removes Beneficial Ownership Reporting Requirements for US Companies and US Persons Sets New Deadlines for Foreign Companies Only entities formed under foreign law and registered to do business in a U.S. state remain subject to the reporting requirement. FinCEN has also stated it will not enforce penalties or fines against U.S. citizens, domestic reporting companies, or their beneficial owners related to BOI reporting.13Financial Crimes Enforcement Network. Beneficial Ownership Information Reporting This exemption came through an interim rule rather than a permanent legislative change, so the area is worth watching.
How to Choose
Wyoming is the right pick for most people. Your name never appears on formation documents, the annual report costs $60, and the state has mature LLC case law behind its protections. New Mexico wins if you want to minimize maintenance to almost nothing, since there is no annual report and no recurring state fee. Delaware is worth the extra $300 a year only if you need the credibility of its Court of Chancery or plan to attract investors who expect a Delaware entity. Nevada rarely makes sense for privacy, given the extra disclosure and the higher annual cost.
Whichever you choose, remember the limit. A professional registered agent keeps your name off the state’s business database, but the IRS, your bank, and any court with jurisdiction can still identify you. The honest goal isn’t total anonymity; it’s keeping your personal information out of the databases that competitors, data brokers, and casual searchers can reach. Wyoming and New Mexico both do that well at a reasonable price.