 South Dakota |  New Mexico | |
|---|---|---|
| All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee. | $245 | $136.95 |
| State filing fee | $160 | $51.95 |
| Typical approval time | 1–3 business days | 1–3 business days |
| What the state asks each year | Annual report $50 | None |
| Yearly state cost, about | $50 | $0 |
| Total over 5 years, aboutFormation, then four years of registered agent ($45) and state fees. Excludes bookkeeping and IRS filings, which are the same in every state. | $625 | $316.95 |
| State income tax on wages | None | Yes |
| Owners in the public formation document | Can be listed | Not listed |
| Newspaper publication after formation | No | No |
South Dakota against New Mexico
Advantages
- No state income tax on wages.
Disadvantages
- Costs $108.05 more to form than New Mexico.
- About $50 a year more to keep than New Mexico (annual report $50).
- Owners can appear in the public state record.
New Mexico against South Dakota
Advantages
- Cheaper to form: $51.95 state fee against $160 in South Dakota.
- Nothing to pay the state each year: no annual report and no annual fee, against about $50 a year in South Dakota.
- Owners are not named in the public formation document.
Disadvantages
- Has a state income tax, though it normally only reaches income connected to the state.
Which one to choose
For the lowest cost over time, New Mexico: about $308.05 less over five years.
If your company will have staff, an office or a warehouse in one particular state, form it there: otherwise you register in that state anyway. Federal taxes and IRS filings are the same in every state.
General information about the states, not legal or tax advice. State fees change occasionally; the price at checkout is the price you pay.
South Dakota or New Mexico
Questions about this comparison
Is a South Dakota or a New Mexico LLC cheaper?
New Mexico is cheaper to form: $136.95 all-in with us, against $245. Each year after, South Dakota costs the state about $50 and New Mexico about $0, plus $45 for the registered agent.
Which is faster, South Dakota or New Mexico?
South Dakota usually approves an LLC in 1–3 business days, New Mexico in 1–3 business days. We file within 48 hours of payment in either state.
Can a non-US resident form an LLC in South Dakota or New Mexico?
Yes, in both. Neither state asks for citizenship or residency, and the registered agent we include provides the in-state address. The EIN is included without an SSN.
Another pair