Wyoming and Delaware are the two most popular US states for non-residents and small business owners forming an LLC. They are both excellent choices, but they serve very different goals. Here is what actually matters when you compare them in 2026.
Cost comparison
Wyoming: $100 to file, $60 per year (annual report). Total year-one cost with Registered Agent: about $189-$249.
Delaware: $110 to file, $300 per year (franchise tax). Total year-one cost with Registered Agent: about $410-$549.
Over five years, a Delaware LLC costs roughly $1,000 more in state fees than a Wyoming LLC. That difference matters if you are bootstrapping.
Privacy comparison
Wyoming does not list LLC members or managers on the public state record. Only the Registered Agent appears.
Delaware also does not list members publicly, but it does require you to disclose them to the state internally. For most founders this distinction does not matter, but Wyoming is marginally more private.
Taxes
Both states have zero state income tax on LLC pass-through income earned outside the state. For non-US residents with no US physical presence, neither state will tax you on foreign-sourced income.
Delaware does charge the flat $300 annual franchise tax on every LLC, regardless of revenue. Wyoming has no such tax.
Banking and reputation
US banks are equally comfortable with both states. Mercury, Relay, Wise Business and Brex approve Wyoming and Delaware LLCs at similar rates.
Stripe and PayPal also accept both without issue.
If you ever pitch US venture capital, Delaware is expected. If you do not, this point is moot.
Verdict
Choose Wyoming if: you are bootstrapping, running an online business, freelancing, drop-shipping, doing Amazon FBA, or building a SaaS that will be funded with revenue.
Choose Delaware if: you are planning to raise from US VCs, your co-founders or future investors expect a Delaware entity, or you want the maximum legal predictability for complex agreements.
Frequently asked questions
Can I move my LLC from Wyoming to Delaware later?+
Yes. It's called domestication or conversion. Delaware accepts incoming LLCs from Wyoming with a state filing. Most founders who do this are preparing for a fundraise.
Does Delaware have any tax advantage over Wyoming?+
No, not for typical LLC owners. Both states have zero state income tax on pass-through income. The only Delaware-specific tax is the $300 franchise tax, which is a cost, not a saving.
Is a Wyoming LLC respected by US banks?+
Yes. Wyoming is one of the top three most accepted LLC states by US neobanks and traditional banks alike. There is no banking penalty for choosing Wyoming.
Why do startups always pick Delaware?+
Because investors want it. The investor's fund documents, term sheets, and SAFE templates are all written assuming Delaware. Switching to Delaware just before a round is paperwork the investor doesn't want to deal with.
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