Side-by-side
Delaware vs Wyoming LLC: Complete 2026 Comparison
5-year cost difference: $2,700 in Wyoming's favor. But cost is not the only factor — VC funding plans, banking reputation, and case law all matter.
Quick verdict
| Wyoming | Delaware | |
|---|---|---|
| State filing fee | $100 | $110 |
| Annual fee | $62 | $300 |
| Franchise tax (LLC) | None | $300 flat |
| State income tax (top) | 0% | 6.6% (Delaware-source only) |
| Anonymous members | Yes (native) | Yes (via nominee) |
| Court of Chancery | No | Yes — 200+ yrs precedent |
| Charging order protection | Exclusive remedy | Standard |
| Series LLC available | Yes | Yes |
| Banking accessibility | 8/10 | 10/10 |
| Privacy score | 9/10 | 7/10 |
| 5-year total cost | $660 | $3,360 |
The Delaware myth: when it's worth the premium
Delaware is the gold standard for venture-backed C-Corporations. Over 60% of Fortune 500 companies and virtually every Silicon Valley VC-backed startup are Delaware entities. But this is about corporations, not LLCs. The Court of Chancery — Delaware's specialized business court with no juries and 200+ years of case law — primarily matters for shareholder disputes in cap-table-heavy companies.
For a single-member LLC running an e-commerce store or a SaaS side project, that infrastructure is overkill.
Pick Delaware if…
- You plan to raise venture capital (but in that case, you usually want a Delaware C-Corp, not an LLC).
- You manage subsidiaries where case-law predictability is critical.
- Your customers or partners specifically want to see a Delaware entity for credibility.
Pick Wyoming if…
- You want the lowest possible ongoing cost.
- Privacy matters — Wyoming does not require member or manager names on public filings.
- You want the strongest asset-protection charging-order language in US LLC law.
- You are a non-resident founder where Stripe and Mercury treat both states equally.
Asset protection: charging order differences
Both states protect LLC owners' assets from business creditors. But Wyoming goes further: if a personal creditor suesyou and tries to seize your LLC interest, Wyoming law makes the charging order the exclusive remedy — the creditor cannot force a sale or take over management. Delaware allows broader remedies in some circumstances.
Tax implications (hint: it's about where you live)
The biggest myth about Delaware and Wyoming: forming there does NOT eliminate your state income tax. LLCs are pass-through entities. You pay state income tax in your state of residence, not the state of formation. A California resident with a Wyoming LLC still owes California 13.3% top rate plus the $800 minimum franchise tax for doing business in California (if the LLC is operating there).
The foreign LLC headache
If you live in (or operate from) a state different from where your LLC is formed, you must "foreign qualify" the LLC in your home state. That means paying both states' annual fees and dealing with two registered agents. A California resident with a Wyoming LLC pays Wyoming's $62 plus California's $800 minimum.
Bottom line: form in your home state unless you have a specific reason (non-resident, asset protection, VC, holding structure).
Side-by-side cost over 5 years
- Wyoming 5-year total: $660
- Delaware 5-year total: $3,360
- Wyoming savings: $2,700
Assumes $50/yr registered agent baseline.
Frequently asked questions
Is Wyoming or Delaware better for a non-resident LLC?
For most non-resident founders, Wyoming wins. The annual fee is $62 vs Delaware's $300, members can stay anonymous, and Stripe/Mercury accept both equally. Delaware's premium is only justified if you plan to raise venture capital, in which case investors usually require a Delaware C-Corp (not an LLC) anyway.
Why do investors prefer Delaware?
Delaware has the Court of Chancery — a specialized business court with 200+ years of corporate precedent. VCs and underwriters insist on Delaware because legal questions resolve faster and more predictably. This matters for C-Corps with complex cap tables, not single-member LLCs.
Can I convert a Delaware LLC to a Wyoming LLC later?
Yes. It is called "domestication" or "conversion". You file paperwork in both states and pay a few hundred dollars in fees. The conversion preserves the LLC's EIN, contracts, and history.
Do I have to pay state tax in Delaware or Wyoming if I live elsewhere?
No. LLCs are pass-through entities. You pay state income tax in your state of residence on the LLC's profits, regardless of where the LLC is formed. Forming in a 0% state does not shield you from your home state's tax.
Does Stripe accept Wyoming LLCs?
Yes. Stripe accepts Wyoming LLCs without distinction from Delaware. You need an EIN, US business bank account (Mercury, Wise, or Relay are common), and basic verification documents.
What is the absolute minimum cost to maintain a Wyoming LLC?
The state minimum annual report fee is $62. Add a DIY registered agent ($0 if you have a Wyoming address) or a budget service ($25-$50/year). Realistic floor: $62-$100/year after year one.
Will I get audited more if I form in Wyoming?
No. The IRS audits based on return characteristics (deductions vs revenue, business activity, prior audits), not state of formation. Wyoming has no special audit risk.