There's no no need to use a formation service. Incorporating a company in the US is very easy and can be done online, even by foreigners. All you need is a Registered Agent and they start at $25/year (in Wyoming).

I'd also like to point out that forming a LLC as a foreigner is a bad idea, as that might make you personally liable for US taxes. Either form a C Corp outright or have your LLC taxed as a C Corp. Then just zero out the profits. Some extra forms to fill out, but still better than paying taxes.

How does one zero out the profits? Pay yourself as a contractor?

Exactly. If you're outside the US, you can only be a contractor, even if you work full-time for your company. There are no caps on how high a contractor's fee can be - that's not the case with employee salaries.

There are more fancy options, such as having a second, foreign company owned by you be the contractor - if you want to avoid personal income taxes in whatever country you live in. Beware of CFC regulations though.

For US founders, S Corps are better.

What makes Wyoming the best state for LLCs?

Members nor Managers are not listed with the state

My main issue with out-of-state LLCs though is you typically have to file in whatever state you're operating/living in as a foreign LLC, so you end up with double the paperwork and filing requirements.

IMHO its better, especially for sole-proprietor / pass-through LLCs to just register in whatever state you're living in.

100% not worth the headache so better to file in the state you "do business in" = home state!

But as an international resident world is your oyster and you can choose any state :)

> 100% not worth the headache so better to file in the state you "do business in" = home state!

This is only true until someone attempts to sue for a triviality. Most companies get sued at some point in time. This is why such a service is of value.

Ah if you are getting sued most formation services won't provide / cant provide "official legal counsel" so you will need a lawyer for that

Correct! I was referring to the disclosures of corporate officers not made by Delaware.

From our experience, most customers go for Wyoming LLCs because of the cost-effective option of a $50 Annual filing charge as compared to Delaware which has a $300 Annual franchise tax. The option is totally up to you.

We wrote a guide around how to choose the best state for new LLCs [1]

[1] https://www.startpack.io/best-state-to-form-your-llc-in

My understanding is that if you create your LLC out-of-state, you still need to register your llc as a foreign entity, which often, puts forth the same requirements as an in-state LLC.

Take specifically California. If you live and operate in CA, but register your LLC in Delaware (or Wyoming), you still need to pay the $800/yr franchise tax and complete all of the same tax paperworks that you would if the LLC was registered in CA.

Isn't it just simpler (and cheaper in time and money) to register in the state you operate in?

If you live in the US, correct! It's best to form an LLC in the state you live in.

If you live internationally, you can actually choose any state to form an LLC in (and Wyoming + Delaware tend to be the two most popular options, Wyoming for online digital businesses due to the lower ongoing annual costs = $50 per year to the state vs $300 per year in Delaware!)

Just a friendly heads up, there are a few copy issues on that page, like

> AsLLCs are overseen at a state level. Any LLC that has been registered in that state, and conducts business there, is called a Domestic LLC.

Why would you go to Wyoming, and not Nevada?

For international LLC owners, Wyoming has lower ongoing annual fees! $50/yr in Wyoming vs $350/yr in Wyoming!

Also I call out international above because if you are a US resident you should form an LLC in your "home state" aka the state you do business in!