Best US States for Remote Founders to Register a US Business (Other Than Delaware)

America continues to be the magnet for entrepreneurial pursuits throughout the world, with more than 1.7 million new business filings made in the initial four months of 2025 alone and over 5.2 million in 2024. Although Delaware has traditionally been the go-to state for incorporation, particularly for major corporations, distant founders and startups are now turning elsewhere for cheaper, more flexible, and privacy-oriented alternatives. 

States such as Wyoming, Nevada, and Ohio are picking up steam, with special tax advantages, low charges, and favorable business regulations. This guide examines the top states for remote founders to register a US company in 2025, contrasting important features, expenses, and regulatory requirements.

Why Delaware Isn't Always the Best Choice for Remote Founders

Delaware has more than half of all publicly traded US companies and 60% of Fortune 500 firms, owing to its strong legal system and investor-friendly courts. Such strengths are mostly applicable to large companies, venture-backed start-ups, or companies that are preparing to become public. 

For remote founders, solo-entrepreneurs, and small start-ups, Delaware's yearly fees, twice registration requirements, and absence of privacy can prove to be expensive and bothersome.

Key Disadvantages of Registering in Delaware for Remote Founders

Let us understand the major drawbacks of registering a business in Delaware:

• Increased annual dues ($300 for LLCs)
• Required registered agent fees
• Foreign qualification is required if you do business or hire in another state, which results in double fees and paperwork
• Less privacy for LLC owners than in states such as Wyoming and Nevada

Best States for Remote Business Registration in 2025 (Outside Delaware)

Few states are better for registering a remote business than Delaware. Read to know more:

1. Wyoming: The New Star for Startups and Remote Founders

Wyoming has experienced explosive growth, with more than 200,000 new businesses 

registrations in 2024 alone. It's become a top destination for remote founders, digital nomads, and non-residents looking for a straightforward, low-cost, and discreet business vehicle.

Major Benefits:

• Zero corporate and individual income tax
• Low annual report fee ($60 on most LLCs)
• Robust asset protection and privacy (no public disclosure of members)
• No obligation to publish members in public records
• Crypto-friendly policies and the first state to regulate crypto banks
• Low cost of formation fee ($100 for LLCs)
• No residency for owners or managers

Ideal for:

Remote founders, small businesses, digital entrepreneurs, real estate investors, and crypto startups that seek anonymity and low expenses.

2. Nevada: The Western Alternative with Comprehensive Privacy

Nevada continues to draw distant founders and tech startups with its pro-tax climate and comprehensive privacy assurances.

Top Benefits:

• No state corporate or individual income tax

• No income tax on franchises

• Significant privacy statutes (no disclosure of shareholders or members to the public)

• No owners', directors', or managers' residency requirement

• Business-friendly courts inspired by Delaware's Chancery Court

• Low reporting requirements

• Robust asset protection (charging order protection for LLCs)

Considerations:

• Increased formation fees ($425–$725 for LLCs)

• Annual business license fee ($350 for LLCs)

• Commercial activity tax for firms with more than $4 million in gross receipts

Best for:

Technology firms, privacy-conscious founders, online businesses, and those who want robust legal protections.

3. Ohio: The Underrated, Affordable Option

Ohio is gaining popularity among non-resident founders for its simplicity and cost-effectiveness.

Key Benefits:

• Low formation fee ($99 for LLCs)

• No annual report or franchise tax

• Simple paperwork and compliance

• No residency requirement

• Business-friendly climate with a growing startup ecosystem

Best for:

Non-resident founders, small businesses, and those who want to avoid ongoing annual fees and paperwork.

4. Your Home State: Often the Best for Physical Presence

If your team and you are physically based in a given state, or if you have workers, office space, or inventory, it's generally best to register your business in that state. Registering in some other location can incur double fees, a foreign qualification, and extra headaches in compliance.

Key Considerations:

• Nexus rules: If you have business activity, inventory, or workers in a state, you're required to register there.

• Local taxes and compliance: You will be liable for state taxes and employment laws where you are doing business.

Comparing the Best States for Remote Founders

Key Compliance Points for Remote Founders

Below are the things to remember if remote founders must comply with registering their business:

1. Learn "Nexus" and Foreign Qualification

If you employ workers, establish an office, or have a steady business in a state, you establish a "nexus" and will have to register there, even if your business is incorporated elsewhere. This can involve paying fees and reporting in numerous states.

2. Registered Agent Requirement

All states need a registered agent with a state of formation physical address. Most remote founders take advantage of third-party registered agent services.

3. Local Business Licenses

Some counties and cities need extra business licenses or permits. Research local requirements, particularly if you're going to have remote workers in multiple states.

4. Privacy Considerations

Nevada and Wyoming provide the most privacy for LLC owners because they don't need public disclosure of members or managers.

5. Crypto and Tech Startups

Wyoming and Nevada are particularly welcoming to crypto and blockchain companies, with specific legislation and banking solutions for digital assets.

Common Mistakes to Avoid When Registering Your Business

Here are the mistakes you must avoid if you want to register your business except in Delaware:

• Failure to register in Delaware or Nevada without being aware of double fees and compliance if you have activity outside of those states

• Overlooking nexus rules and not registering as a foreign entity in jurisdictions where you have workers or business presence

• Selecting a state based on reputation alone instead of your business needs and future goals

• Forgetting about privacy needs if anonymity is crucial for your business or individual circumstances

Also Read | How to Streamline Operations in Your CPA Firm with Remote Talent

Conclusion

Though Delaware is still an excellent option for big corporations and VC-backed firms, remote founders now have attractive alternatives in 2025. Wyoming is exceptional for its cost-effectiveness, privacy, and crypto-supportive policies. Nevada offers strong privacy and legal protection, while Ohio offers a bare-bones, low-cost alternative with few recurring fees. 

Finally, the best state is a function of your business model and your team, and your priorities around privacy, cost, and compliance. Consulto our experts at The Fino Partners to know the best states for remote founders to register a US company in 2025.