How to Choose the Right State for Your US Company: Wyoming vs Delaware vs New Mexico

One of the most common questions from Egyptians looking to set up a company in the US is: "Which state should I register in?" The answer isn't the same for everyone, because each state has different advantages that suit different types of businesses.

In this article, we'll cover the most popular options among Egyptians and non-US residents in general: Wyoming, Delaware, and New Mexico.

Wyoming

Wyoming has become the go-to choice for many entrepreneurs from outside the US, and for good reasons:

• Low cost: Filing fees and annual renewal costs are affordable compared to other states.
• Strong privacy: You're not required to list your name as an owner in public records.
• No state income tax: Wyoming doesn't impose a state-level income tax.
• Management flexibility: Its laws are very LLC-friendly and well-suited for small to mid-sized businesses.

Wyoming is the best fit if you run an online business or offer digital services and want low costs with strong privacy.

Delaware

Delaware is the unofficial corporate capital of the US — more than half of all publicly listed American companies are incorporated there. Why?

• Advanced legal system: Delaware's business courts are specialized with well-established precedents, which gives investors confidence.
• Investor preference: If you're thinking about raising funding, US investors typically prefer companies incorporated in Delaware.
• Flexible share structure: Especially well-suited for C-Corps aiming for growth and investment.

Delaware is the best fit for startups planning to raise capital or join programs like Y Combinator or Techstars. Keep in mind that costs are slightly higher, and if your company doesn't operate inside Delaware, you'll also need to register in the state where you do business.

New Mexico

New Mexico is the least well-known option, but it's been gaining attention for one key reason: no annual report requirement. Most states require you to file a yearly report and pay a fee — New Mexico doesn't, which significantly reduces ongoing costs and paperwork. Like Wyoming, it also doesn't require public disclosure of the owner's identity.

New Mexico is the best fit if you want minimal ongoing administration and a simple, low-cost structure.

Which One Is Right for You?

The state you choose depends primarily on your business goals. If you're looking for simplicity and low costs, Wyoming or New Mexico are your best options. If you're thinking about raising investment or scaling, Delaware is the standard investors expect.

In all cases, your registered state doesn't limit where you work — you can serve clients anywhere in the world regardless of where your company is incorporated.

Need help choosing the right structure for your company? [Contact us] and we'll guide you through every step.