Why Delaware LLC Costs More Than Wyoming (But Founders Still Choose It)
Published April 27, 2026 · 4:00 · 5 views
Key takeaways
- If you pick Delaware over Wyoming to
- venture capital or sell equity to US
- investors, lawyers, and acquirers
- agent service, EIN registration, and
Summary
Why Delaware LLC Costs More Than Wyoming (But Founders Still Choose It) Get help: https://bastionformations.com Delaware LLC costs $100 more to form and $300 yearly franchise tax, yet 68% of venture-backed startups choose it over Wyoming because investors, lawyers, and acquirers trust Delaware's 40 years of case law and Chancery Court that resolves disputes in 90 days instead of 18 months. Wyoming LLC formation costs $249 at Bastion Formations with no franchise tax and files in 1 to 3 days. Delaware LLC costs $349 with $300 annual franchise tax but eliminates $2,500 to $8,000 conversion costs when you raise capital later. If you never plan to sell equity or take venture funding, Wyoming saves $250 every year. If you will raise a seed round, hire US employees, or grant stock options, Delaware protects you with established legal precedent that Wyoming lacks. As of 2026, the decision tree is simple: will you sell more than 10% to outside investors? Yes means Delaware. No means Wyoming. BY THE NUMBERS ============== Wyoming LLC formation: $249 Delaware LLC formation: $349 Wyoming annual cost (year 1): $348 total Delaware annual cost (year 1): $748 total Delaware franchise tax: $300
Chapters
Full transcript
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If you pick Delaware over Wyoming to save money, you'll waste $200. And here's why founders still choose it. Here's the problem. Price isn't the real cost.
Wyoming LLC costs $249 at Bastion Informations. Files in 1 to3 days. Zero franchise tax ever. Delaware costs $349 plus $300 yearly franchise tax, but 68% of funded startups still pick it.
A founder in Berlin launches a SAS product, picks Wyoming to save $100, then loses a $2 million series A because VCs only fund Delaware Core. Within 6 months, he reinccorporates, paying $1,200 in legal fees and state filings. Delaware isn't cheaper. It's insurance.
The question is whether you need that insurance in 2026, and most bootstrappers don't. Most people fail here. They see Delaware's $300 annual franchise tax and think Wyoming's $60 renewal wins. But if you plan to raise venture capital or sell equity to US investors, Delaware law protects you in 40 years of case precedent.
Wyoming has 8 years. When a co-founder sues or an investor disputes terms, you want the state with 1. 5 million entities and a chancery court that decides cases in 90 days, not 18 months. If you're bootstrapping, staying under $500,000 revenue, and never taking DC money, Wyoming saves you $250 every single year.
Bastions files your Wyoming LLC in 1 to 3 days for $249 total, and your registered agent costs $99 per year. No franchise tax, no annual report complexity. You keep that $250 and reinvest it in ads or products. If you plan to raise a seed round, hire US employees, or grant stock options, Delaware is the default.
This is important. 68% of ventureback companies incorporate in Delaware because investors, lawyers, and acquirers already know the rules. Bastion Formations charges $349 for Delaware LLC formation, and you pay the state $300 each June, but you avoid the $3,000 to $8,000 conversion cost when a VC asks you to ring corporate later. Here's the problem.
Founders try to save $100 today and spend $5,000 fixing it in year two. If you pick Wyoming, then pivot into fundraising, you'll pay a lawyer $2,500 to $8,000 to convert to Delaware, refile your operating agreement, reissue membership units, and update your EIN. That's 4 to 6 weeks of work and legal fees that erase 3 years of savings. Use this decision tree.
Ask yourself one question. Will I ever sell more than 10% of my company to outside investors? If yes, go Delaware. If no, go Wyoming.
Bastions lets you form either in under 10 minutes. And both include registered agent service, EIN registration, and mail scanning with no hidden fees. You can start a Delaware LLC online today for $349 or a Wyoming LLC for $249 and both file within three business days. The registered agent dashboard is included and you get real human support on WhatsApp, not a chatbot.
Will I ever sell more than 10% of my company to outside investors? Wyoming saves $250 yearly. Delaware costs $300 tax. 68% of VCbacked startups pick Delaware for investor trust.
Bastformations, Wyoming, $249, Delaware, $349, agent $99 yearly. Start your LLC at bastinformations. com. No hidden fees.
Files in 3 days. Visit https/bastinformations. com.
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