📚 Best States to Start an LLC for Dropshipping (2025 Guide)
📚 Best States to Start an LLC for Dropshipping (2025 Guide)
Everything you need to know as a non-U.S. entrepreneur who wants to start dropshipping with a U.S. company.
Everything you need to know as a non-U.S. entrepreneur who wants to start dropshipping with a U.S. company.
If you live outside the U.S. and want to build a Shopify store, use Stripe, or sell on Amazon, forming a U.S. Limited Liability Company (LLC) is often required.
A U.S. LLC gives you:
Access to Stripe and PayPal Business
Legal documents for Amazon and Shopify
A real U.S. business address
Tax ID (EIN) — even without SSN
More trust with U.S. suppliers and platforms
💡 And the best part? You can start your LLC 100% online — no travel, no SSN, no U.S. residency needed.
Every U.S. state has its own rules, costs, and benefits.
If you're starting a dropshipping store, your LLC should be:
Easy to set up
Private (your name isn't public)
Affordable each year
Friendly for international owners
Let's break down the top states for dropshippers.
Why Choose Wyoming?
✅ No state income tax
✅ Privacy: You don't have to list your name publicly
✅ Low annual fees (~$60–$100)
✅ Strong protection for single-owner LLCs
✅ Fast setup online
💬 Best for: Dropshippers, freelancers, digital nomads
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Why Choose New Mexico?
✅ No annual reports
✅ Low annual cost (~$50/year)
✅ Privacy protection for owners
✅ One of the cheapest options long-term
💬 Best for: Beginners who want a simple, low-maintenance LLC
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Pros:
No personal income tax
Large U.S. economy
Cons:
• Complicated franchise taxes
• More paperwork
• Not great for remote or solo digital businesses
💬 Best for: People living in or doing business in Texas
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Pros:
No sales tax
Low fees
Cons:
• No advantage if you're not selling physical products in Montana
• Less privacy than Wyoming or NM
💬 Best for: U.S. car registration, not dropshipping
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ChooseWyomingif you want privacy, protection, and simple renewal
ChooseNew Mexicoif you want the lowest long-term costs
Avoid states like California, New York, or Texas unless you're doing business
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