Arizona vs Wyoming LLC: Which Is Better for Non-Residents?
Arizona and Wyoming are both excellent low-cost states. Compare fees, annual requirements, privacy, taxes, publication and bank familiarity to choose the right one for your business.
Arizona and Wyoming are two of the most cost-effective states for a foreign-owned LLC. Both are inexpensive to form, simple to run from abroad and accepted by banks and platforms. The differences come down to annual costs, privacy and a few practical details.
Head to head
| Arizona | Wyoming | |
|---|---|---|
| State formation fee | About $50 | About $100 |
| UCB LLC + EIN, all-in | $199 | $249 |
| Annual report | None | Yes, license tax from $60 |
| Franchise tax | None | None |
| State income tax | Flat 2.5% personal, only on Arizona-source income | None |
| Privacy | Moderate: members or managers listed | Excellent: owners not listed |
| Publication | Only if outside Maricopa/Pima counties | None |
| Familiarity for banks/platforms | Good | Very high |
| Five-year state cost | About $50 | About $340 |
Choose Arizona if…
- you want the lowest possible ongoing cost, with nothing to file at the state each year,
- privacy is not a priority (Arizona's articles list members or managers),
- you may later operate in Arizona, a fast-growing economy, or
- you like the simplicity of "form it and keep the agent".
See why form an LLC in Arizona.
Choose Wyoming if…
- privacy matters: owners are not listed in public filings,
- you want the state most familiar to banks, fintechs and platforms for foreign-owned LLCs,
- you prefer a state with no income tax at all, or
- you value Wyoming's long-established LLC law and asset protection.
See Wyoming LLC for non-residents.
Income tax in practice
For a foreign-owned LLC run entirely from abroad, with no Arizona activity, Arizona's 2.5% personal income tax usually does not apply, because there is no Arizona-source income. So for most remote businesses, the income tax difference is theoretical. It matters if you later have staff or operations in Arizona. See Arizona business taxes.
Annual obligations compared
| Arizona LLC | Wyoming LLC | |
|---|---|---|
| State annual report | No | Yes, anniversary month |
| Registered/statutory agent | Yes | Yes |
| Federal Form 5472 | Yes, every year | Yes, every year |
Federal obligations are identical: a foreign-owned single-member LLC files Form 5472 with a pro forma 1120 every year in both states. See Form 5472 explained.
What about New Mexico?
New Mexico combines Arizona's low cost (no annual report, $50 filing) with Wyoming-style privacy. See New Mexico LLC.
Our usual recommendation
- Most online businesses that value privacy and familiarity: Wyoming.
- Cost-focused solo founders comfortable with listed names: Arizona or New Mexico.
- Planning to raise venture capital: neither; a Delaware C-Corp. See Arizona vs Delaware.
How UCB helps
We form LLCs in both states, with EIN and first-year agent, for $199 (Arizona) or $249 (Wyoming) all-in. See the Arizona and Wyoming pages, or our best state guide.
Still deciding between Arizona and Wyoming? WhatsApp us at +91 8105 199 399 or email info@ucbsolutions.com.
Let our experts handle it for you
Every business is different. Message us with your country, business type and goals, and we will recommend the right structure, state and package. We do the work; you focus on your business.
This article is general information for non-resident business owners and is not legal or tax advice. Rules and fees change; contact us to confirm what applies to your situation.
