The three states most Semper Facilis members choose between have genuinely different profiles, and the right answer depends more on your specific goals than on which state is "best" in the abstract. Arizona is the natural choice if you're actually operating there — no annual report requirement, the lowest state filing fee (~$85), and no foreign-qualification headache for a business that only does business in-state. What it doesn't offer is privacy: member names are part of the public record.
Wyoming is the privacy-and-low-cost choice: member names never appear on the public Articles of Organization, there's no state income tax, and the $60/year annual report fee is the lowest ongoing cost of the three. Wyoming also extends its charging-order protection explicitly to single-member LLCs — a protection many states carve out.
Nevada offers the strongest, most litigation-tested charging-order statute of the three (NRS § 86.401) and no state income tax, but at meaningfully higher cost — roughly $400 in state fees at formation and ~$350/year ongoing, versus Wyoming's $60/year. Nevada suits businesses that specifically want the deepest statutory protection and don't mind paying for it.
Which state is best to form an LLC in?
- Arizona
- $499 service + ~$85 state. No annual report. 2.5% state income tax. Best if you operate there.
- Wyoming
- $599 service + ~$100 state. $60/year. No income tax. Members stay off the public record.
- Nevada
- $699 service + ~$400 state. ~$350/year. No income tax. Strongest charging-order statute.
- Foreign qualification
- Forming out of state while operating locally usually means registering in both.
How do you pick a formation state?
- Determine where you will physically operate — this usually decides it.
- Weigh privacy and charging-order strength only if they apply to your actual risk.
- Total the ten-year cost including annual fees, not just formation.
- Confirm whether foreign qualification would erase the advantage.
What the full article covers
- Foreign-qualification triggers in detail
- A complete fee table across all three states
- How to layer a trust with an out-of-state LLC
The full comparison covers foreign-qualification triggers in detail (when forming out-of-state actually requires a second registration where you operate), a complete fee table, and guidance on how to layer a trust structure with an out-of-state LLC.
3 more sections for members