2024 Comprehensive Guide

Wyoming vs Delaware Which State is Right for Your LLC?

Both states are business-friendly, but they serve different needs. This guide helps you make the right choice based on your specific situation.

Wyoming
Best for Most Businesses
Lowest costs, maximum privacy
Delaware
Best for VC-Backed Startups
Established corporate law

Quick Verdict

Choose Wyoming if you:

  • Want the lowest ongoing costs ($60/year vs $300)
  • Are bootstrapping or running a small business
  • Value privacy and asset protection
  • Don't plan to raise VC funding

Choose Delaware if you:

  • Plan to raise venture capital funding
  • Need to issue stock options (C-Corp)
  • Expect complex corporate litigation
  • Are building a tech startup for acquisition

Feature-by-Feature Comparison

Every detail you need to make an informed decision

Feature Wyoming Delaware
Formation Fee

One-time state filing cost

$100 Cheaper $110
Annual Fee

Yearly state maintenance cost

$60 5x Cheaper $300
5-Year Total Cost

Formation + 5 years maintenance

$400 Save $1,210 $1,610
State Income Tax

Tax on business profits

None (0%) None (0%)
Franchise Tax

Additional business tax

None Winner $300/year (LLC)
Privacy Protection

Member names hidden from public

Excellent Excellent
Asset Protection

Charging order protection

Strongest in US Winner Strong
Processing Time

Standard filing duration

1-3 business days Faster 3-5 business days
Corporate Case Law

Legal precedents for disputes

Developing Most Established Winner
Specialized Business Court

Dedicated court for business matters

No Court of Chancery Winner
VC/Investor Familiarity

Preferred by venture capitalists

Low Very High Winner
Best For Small businesses, freelancers, e-commerce, international founders VC-funded startups, tech companies planning IPO/acquisition

Real Cost Comparison Over Time

See how the costs add up over 1, 5, and 10 years

Year 1

Wyoming $160
Delaware $410
Save $250 with Wyoming

Year 5

Most Popular
Wyoming $400
Delaware $1,610
Save $1,210 with Wyoming

Year 10

Wyoming $700
Delaware $3,110
Save $2,410 with Wyoming

* Costs include state formation fee + annual fees. Does not include registered agent or other services.

When to Choose Wyoming

Ideal Business Types:

  • E-commerce stores (Amazon, Shopify)
  • Freelancers and consultants
  • SaaS and digital products
  • Service-based agencies
  • International founders
  • Real estate holdings

Key Advantages:

  • 80% lower annual costs than Delaware
  • Best asset protection laws in the country
  • No franchise tax ever
  • Fast processing (1-3 days)
  • Lifetime proxy for nominee services

When to Choose Delaware

Ideal Business Types:

  • VC-backed tech startups
  • Companies planning IPO
  • Businesses with complex equity
  • C-Corps with stock options
  • Companies expecting litigation

Key Advantages:

  • Court of Chancery for business disputes
  • 200+ years of corporate case law
  • VCs prefer it - familiar documents
  • Predictable outcomes in court
  • 60%+ of Fortune 500 are incorporated here

Frequently Asked Questions

Can I change from Wyoming to Delaware later (or vice versa)?
Yes, through a process called "domestication" or "conversion." However, it involves legal fees, new state filings, and updating all your business accounts. It's better to choose the right state from the start. Most businesses that start in Wyoming stay there because the cost savings compound over time.
Do VCs really care which state I'm incorporated in?
For LLCs, most VCs don't have strong preferences - they'll likely ask you to convert to a C-Corp anyway. For C-Corps raising significant funding ($1M+), Delaware is strongly preferred because VCs are familiar with Delaware corporate law and standard documents. If you're bootstrapping or raising small amounts, Wyoming works fine.
What if my business is in California or New York?
If you have a physical presence in CA or NY, you'll need to register as a "foreign LLC" there regardless of where you form. You'll pay CA/NY taxes on income sourced there. For purely online businesses without physical presence, Wyoming or Delaware lets you avoid those state taxes. Consult a tax professional for your specific situation.
Is Wyoming's asset protection really that much better?
Yes. Wyoming was the first state to create the LLC structure (1977) and has continuously strengthened its laws. Wyoming is one of only a few states that extends "charging order protection" to single-member LLCs, meaning creditors can't easily seize your LLC interests. Delaware offers good protection too, but Wyoming is widely considered the gold standard.
I'm a non-US resident. Which state should I choose?
For most international entrepreneurs, Wyoming is the better choice. The lower annual costs, simpler compliance, and strong privacy protections make it ideal. Delaware's advantages (VC familiarity, Court of Chancery) are less relevant unless you're specifically targeting US venture capital. We recommend Wyoming for 90%+ of our international clients.
What about Nevada? I've heard it's also business-friendly.
Nevada used to be popular but has become less competitive. Formation costs $425 (vs $100 for Wyoming), annual fees are $350 (vs $60), and they require a state business license ($200/year). Wyoming now offers all of Nevada's benefits (no state income tax, privacy) at a fraction of the cost.

Ready to Start Your LLC?

Both Wyoming and Delaware are excellent choices. We'll help you form your LLC quickly and correctly, whichever state you choose.

Need help deciding? Contact our team

USBizGuru Support

Welcome! 👋

Please introduce yourself to start chatting with our AI assistant.