State Comparison

Delaware vs Wyoming LLC

The two most popular states for LLC formation, compared on costs, taxes, privacy, and more.

Cost breakdown
Decision quiz
Expert recommendation

Quick Verdict: Wyoming wins for most founders

Wyoming saves you $400 over 5 years compared to Delaware ($2,191 vs $2,591 total), with no franchise tax, no state income tax, and stronger privacy. Choose Delaware only if you're raising venture capital from US institutional investors.

Side-by-Side Comparison

Recommended

Wyoming

Alternative

Delaware

Formation (Year 1)
$599
$599
Annual Compliance (Yr 2+)
$299/yr
$399/yr
Registered Agent (Yr 2+)
$99/yr
$99/yr
Franchise Tax
None
Included in annual
State Income Tax
None
None (out-of-state)
5-Year Total Cost
$2,191
$2,591
Processing Time
3-5 business days
3-5 business days
Privacy Protection
Excellent
Good
Business Courts
Standard courts
Court of Chancery
VC/Investor Preference
Acceptable
Strongly preferred
Asset Protection
Strongest in US
Standard
Best For
Most businesses, freelancers, e-commerce, international founders
VC-backed startups, complex structures

Not Sure? Answer 3 Questions

We'll recommend the right state for your situation.

1. Are you planning to raise venture capital from US investors?

2. What matters most to you?

3. What type of business are you starting?

States to Avoid for International Founders

California

$800/year minimum franchise tax, even with $0 revenue. High compliance burden.

5-year total: $5,000+ (vs $2,191 for Wyoming)

New York

Requires newspaper publication ($1,500+). Adds unnecessary cost and delays.

5-year total: $4,000+ (vs $2,191 for Wyoming)

Nevada

$325/year annual list + $200 business license. Higher than Wyoming with similar benefits.

5-year total: $3,500+ (vs $2,191 for Wyoming)

Explore More Tools

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Frequently Asked Questions

Is Wyoming or Delaware better for an LLC?
For most founders, especially international ones, Wyoming is better. It has lower annual costs ($299/year vs $399/year for Delaware), no franchise tax, no state income tax, and strong privacy protections. Delaware is better only if you plan to raise venture capital or need the Court of Chancery for complex business disputes.
Why do investors prefer Delaware?
Investors prefer Delaware because of its Court of Chancery (specialized business court), extensive case law precedent, and standardized corporate governance frameworks. Most VC term sheets are written assuming Delaware law. If you plan to raise institutional funding, Delaware makes negotiations smoother.
Can I switch from Wyoming to Delaware later?
Yes. You can domesticate (transfer) your LLC from one state to another. The process involves filing in both states. Many founders start in Wyoming for low costs and move to Delaware only if they raise VC funding. Contact StartGlobal for assistance with state transfers.
What is the Delaware franchise tax for LLCs?
Delaware charges a flat $300/year franchise tax for all LLCs, regardless of income or size. With StartGlobal, the Delaware franchise tax and annual report are bundled into a $399/year annual compliance fee. Formation is a one-time $599 all-inclusive fee covering filing, EIN, registered agent, and bank account.
Does Wyoming have a franchise tax?
No. Wyoming has no franchise tax, no state income tax, and no gross receipts tax. Annual compliance with StartGlobal is $299/year plus $99/year registered agent. This makes Wyoming significantly cheaper for long-term LLC maintenance compared to Delaware.
Which state has better privacy for LLC owners?
Wyoming has stronger privacy protections. Neither state requires LLC members to be listed on public formation documents, but Wyoming has additional protections: no requirement to file annual reports publicly disclosing members, and strong charging order protections for single-member LLCs.
Do I need to live in Wyoming or Delaware to form an LLC there?
No. You can form an LLC in any state regardless of where you live. International founders routinely form in Wyoming or Delaware while living abroad. You just need a registered agent with a physical address in that state, which StartGlobal provides.
How much does StartGlobal charge for Wyoming vs Delaware LLC?
StartGlobal charges the same $599 all-inclusive price for both Wyoming and Delaware LLCs. This covers formation filing, registered agent (first year), EIN, operating agreement, and bank account setup. The only difference is the annual compliance cost: $299/year for Wyoming vs $399/year for Delaware (plus $99/year registered agent for both).