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Formation 101Feb 22, 2026 · 8 min read · Appzo Team

Wyoming vs. Delaware vs. New Mexico: which state should you form in?

A clear comparison of the three most popular states for international founders.

The 'best state' question gets a lot of confident answers online, most of them oversimplified. The right state depends on what you're optimizing for. Here's how to think about it.

Wyoming

Low fees ($100 formation, $60 annual report), strong owner privacy, friendly business climate. Excellent default for most international founders.

Delaware

Most prestigious for investor-backed companies. Chancery court is unparalleled for corporate disputes. Annual franchise tax is higher and more complex.

New Mexico

Cheapest formation ($50) and no annual report. Excellent for very early-stage solopreneurs who want minimum overhead.

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