How do you determine the state where the company will be formed based on the business you will do?

If you do not live in the USA, you can form an LLC company in any state you want. Citizenship is not required during LLC company formation in any US state. (Also, almost all states do not require ID or passport)

Assuming you are a non-US resident foreign entrepreneur, let's look at the situation from a different angle that may help you choose a state.

You should probably be setting up an LLC in Usa for one or more of the following business categories.

These;

• Selling on global marketplaces (Amazon, Etsy, Ebay, etc.)
• Shopify Dropshipping
• Selling products abroad from your own website
• digital marketing job
• Selling digital products or services
• software sales
• Online course sales
• online consulting

Almost all foreign entrepreneurs who do not live in the United States tend to form an LLC for the business types on this list.

We need to divide these business types into two: marketplaces and other.

Best State to Form an LLC for Marketplaces

If you are going to establish a company to sell on a global marketplace platform such as Amazon, we recommend that you establish your company Wyoming .

Why Wyoming?

Because in Amazon business, the address verification process is very important during the account opening phase.

Registered representative agencies (such as Northwest) that form companies accept verification codes sent from Amazon to the company addresses they allocate for LLC companies formed in the state of Wyoming.

We will discuss the subject of Registered Agent in detail in the next step.

• At least, you will not encounter any problems during the Amazon address verification phase, as they accept account verification cards sent by Amazon to the company addresses they provide to you in the state of Wyoming without any problems. Many registered agents require you to rent a virtual office for these types of address verification codes. But Northwest has you covered in the state of Wyoming.
• a Reseller License in the state of Wyoming .
• Some suppliers may request a Certificate of Good Standing for your LLC company. In Wyoming, you can download a certificate of good standing online for free. In other states, this document is subject to a fee.

These several reasons indicate that the most logical state to form an llc for marketplace platforms is Wyoming.

Otherwise, you may have to make more effort and spend extra money.

Best State to Incorporate for Other Business Types

It doesn't matter.

Because the common point of all other works is this;

Receiving payments from credit cards online and making online collections.

So you will need a Stripe account and a digital bank account. Choosing the most cost-effective state for this type of work would be a very logical decision.

The most cost-effective state with no annual payments and reporting requirements New Mexico .

If you plan to form an llc in the USA to do any business other than Amazon and marketplaces, choose the state of New Mexico.

LLC formation in this state is only $50 . Additionally, you do not have to file a report every year and make annual payments to the state, as in the states of Wyoming and Delaware.

If you have decided on the most advantageous state to form an LLC company in Usa, you can complete this section and move on to the next step.