State Comparison

Wyoming vs Delaware LLC

Side-by-side comparison of forming an LLC in Wyoming vs Delaware — fees, processing times, taxes, and decision factors to help you choose the right state for your business.

Wyoming

Filing fee$100

Processing5–10 days

Annual report$60

State income taxNone

None

Delaware

Filing fee$90

Processing3–5 days

Annual report$300

State income taxNone on out-of-state income for pass-through LLCs

$300 flat annual franchise tax

Lower state fees:

Wyoming — $160 total 1st-year state fees

Excludes franchise tax, registered agent, and other compliance costs

Pros and Cons

Wyoming (WY)

Pros

Lowest ongoing costs in the US ($60 annual report)
Strongest charging order protection in the nation
No state income tax
Strong privacy — member names not public
LLC-friendly statute favors owners over creditors

Cons

Foreign qualification required if operating in another state
Less developed case law than Delaware
Not preferred by most institutional investors

Delaware (DE)

Pros

Most developed LLC/corporate case law in the US
Court of Chancery resolves business disputes faster than any other state
No state income tax on LLCs not doing Delaware business
Preferred by VCs and institutional investors
Strong privacy — member names not required on public filings

Cons

$300 annual franchise tax regardless of revenue
Foreign qualification required in your home state if operating elsewhere
Annual registered agent fee ~$100-$300

Side-by-Side Comparison

Feature	Wyoming	Delaware
LLC filing fee	$100	$90
Corporation filing fee	$100	$89
Annual report fee	$60	$300
Processing time	5–10 days	3–5 days
State income tax	None	None on out-of-state income for pass-through LLCs
Franchise / entity tax	None	$300 flat annual franchise tax
Popular formation state?	Yes	Yes

Which Should You Choose?

Choose Wyoming if...

• Best for asset protection and holding companies

• Ideal for non-resident founders (US nexus without tax)

• You live or operate primarily in Wyoming — forming locally avoids foreign qualification costs and compliance in multiple states.

Choose Delaware if...

• Ideal for VC-backed startups and multi-state operations

• Overkill for single-state small businesses

• You live or operate primarily in Delaware — forming locally avoids foreign qualification costs and compliance in multiple states.

FAQ

Is it cheaper to form an LLC in Wyoming or Delaware?

Wyoming charges $100 filing + $60 annual report. Delaware charges $90 filing + $300 annual report. Wyoming is the cheaper option on state fees alone, though franchise tax and other compliance costs also matter.

Should I form my LLC in Wyoming or Delaware?

For most businesses, form in the state where you actually operate. Wyoming (None state income tax) and Delaware (None on out-of-state income for pass-through LLCs state income tax) each have their specific characteristics. If you physically operate in one of these states, form there. Forming in Wyoming while operating in Delaware (or vice versa) means paying fees in both states.

Can I form my LLC in Wyoming and operate in Delaware?

Yes, but you'll need to "foreign qualify" in Delaware, which means paying a registration fee in Delaware plus ongoing compliance in both states. You'll also typically owe Delaware state taxes on income earned there regardless of where the LLC is formed. Forming in a single state (usually your home state) is typically cleaner and cheaper for small businesses.

What are the annual costs for an LLC in Wyoming vs Delaware?

Wyoming: None — plus $100-$300/yr for a registered agent. Delaware: $300 flat annual franchise tax — plus $100-$300/yr for a registered agent. Budget an additional $500-$2,000/yr for accounting, bookkeeping, and business license renewals regardless of state.

Which state has better asset protection — Wyoming or Delaware?

Asset protection varies by state statute. States like Wyoming, Nevada, and Delaware have the strongest charging-order-exclusive doctrines for LLC members. Wyoming and Delaware both offer LLC liability protection, but consult an attorney for state-specific asset protection planning if you have significant personal assets to shield.

Wyoming resources

Delaware resources

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Pros and Cons

Wyoming (WY)

Pros

Lowest ongoing costs in the US ($60 annual report)
Strongest charging order protection in the nation
No state income tax
Strong privacy — member names not public
LLC-friendly statute favors owners over creditors

Cons

Foreign qualification required if operating in another state
Less developed case law than Delaware
Not preferred by most institutional investors

Delaware (DE)

Pros

Most developed LLC/corporate case law in the US
Court of Chancery resolves business disputes faster than any other state
No state income tax on LLCs not doing Delaware business
Preferred by VCs and institutional investors
Strong privacy — member names not required on public filings

Cons

$300 annual franchise tax regardless of revenue
Foreign qualification required in your home state if operating elsewhere
Annual registered agent fee ~$100-$300

Feature

Wyoming

Delaware

LLC filing fee

$100

$90

Corporation filing fee

$100

$89

Annual report fee

$60

$300

Processing time

5–10 days

3–5 days

State income tax

None

None on out-of-state income for pass-through LLCs

Franchise / entity tax

None

$300 flat annual franchise tax

Popular formation state?

Yes

Which Should You Choose?

Choose Wyoming if...

• Best for asset protection and holding companies

• Ideal for non-resident founders (US nexus without tax)

• You live or operate primarily in Wyoming — forming locally avoids foreign qualification costs and compliance in multiple states.

Choose Delaware if...

• Ideal for VC-backed startups and multi-state operations

• Overkill for single-state small businesses

• You live or operate primarily in Delaware — forming locally avoids foreign qualification costs and compliance in multiple states.