State Comparison

Delaware vs Wyoming LLC

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

Cost breakdown
Decision quiz
Expert recommendation

Quick Verdict: Wyoming wins for most founders

Wyoming costs less to keep every year than Delaware, with no franchise tax and no state income tax. With StartGlobal, forming in either state is $399 with the state fees included. Choose Delaware only if you're raising venture capital from US institutional investors.

Side-by-Side Comparison

Recommended

Wyoming

Alternative

Delaware

Formation (one-time)
$399, all fees included
$399, all fees included
Annual Reports & Compliance
Included
Included
Registered Agent
Included
Included
State Franchise Tax
None
Flat annual tax
State Income Tax
None
None (out-of-state)
Managed Plan (ongoing)
$149/mo
$149/mo
Processing Time
3-5 business days
3-5 business days
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

Minimum annual franchise tax, even with $0 revenue. High compliance burden.

Significantly more expensive than Wyoming over 5 years

New York

Requires newspaper publication after forming, which adds cost and weeks of delay.

Far more expensive to keep than Wyoming

Nevada

An annual list and a state business license every year. Higher upkeep than Wyoming with similar benefits.

Higher yearly upkeep than Wyoming

Explore More Tools

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Ready to Form Your LLC?

StartGlobal forms your LLC for a one-time $399, whether you choose Wyoming or Delaware, with all state and government fees, registered agent, and bank account setup included. Ongoing compliance is a la carte from $99/year, or fully managed at $149/month. Cancel the managed plan anytime.

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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 no franchise tax, no state income tax, and lower state fees. Delaware is better only if you plan to raise venture capital or need the Court of Chancery for complex business disputes. With StartGlobal, formation for either state is a one-time $399 with all state and government fees included, and ongoing compliance is a la carte from $99/year or fully managed at $149/month.
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 annual franchise tax for all LLCs, regardless of income or size. With StartGlobal, formation is a one-time $399 with all state and government fees included, and your annual report and compliance filings are handled a la carte from $99/year or in the fully managed $149/month plan. State franchise taxes are billed separately at cost.
Does Wyoming have a franchise tax?
No. Wyoming has no franchise tax, no state income tax, and no gross receipts tax. With StartGlobal, annual compliance and registered agent service are included in the Managed LLC plan ($149/month). This makes Wyoming an affordable choice for long-term LLC maintenance compared to Delaware.
Is a Delaware or Wyoming LLC anonymous?
Neither. Neither state lists LLC members on public formation documents, and neither is anonymous: the articles name an organizer, that filing is public in both states, and as a matter of policy we list the LLC's responsible party by name and address as the organizer. Wyoming does add strong charging order protection for single-member LLCs, which is an asset-protection point rather than a privacy one. Choose between the two on cost, courts and investor expectations.
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 forms your LLC for a one-time $399 for both Wyoming and Delaware, with all state and government fees, registered agent, operating agreement, and bank account setup included. Ongoing annual reports and compliance are a la carte from $99/year, or fully managed at $149/month. Cancel the managed plan anytime. State franchise taxes are billed separately at cost.