The Answer for Most People
Form your LLC in the state where you actually do business. If you operate in Texas, form in Texas. If you operate in California, form in California. The exception is if your business has zero physical presence in your home state — then Wyoming or Delaware may make sense.
The idea of forming in Delaware or Wyoming to avoid your home state's fees is a myth for most small businesses. Here's why: if you form in Wyoming but your business is based in California, you must still register as a foreign LLC in California — paying California's $70 registration fee, $800 annual franchise tax, and biennial statement fee on top of Wyoming's costs. You also need a registered agent in Wyoming ($50–$150/year). The math rarely works out.
Wyoming makes sense for: online-only businesses with no physical state presence, LLCs owned by non-U.S. residents, or founders who want maximum privacy. Delaware makes sense for: venture-backed companies where investors require a Delaware C-corp (less relevant for LLCs). Use the tool below to run the numbers for your specific situation.
Popular Out-of-State Comparisons
Popular Home States
These are the states most business owners compare from. Select yours to get started.
Select Your Home State
Where do you operate your business? Pick your state to see 49 tailored comparisons.
↑ Select your home state above to see 49 tailored comparisons.