Delaware LLC vs Wyoming LLC (2026)
Compare Delaware LLC vs Wyoming LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | Delaware | Wyoming |
|---|---|---|
| Filing Fee | $90 | $100 |
| Processing Time | 7 day(s) | 1 day(s) |
| Annual Report Fee | $300 | $62 |
| Annual Report Due | June 1 | Anniversary month |
| State Income Tax | No | No |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$250 + registered agent ~$150/yr |
Verdict: Delaware wins for most businesses
For most Delaware-based small businesses, forming locally in Delaware is the better choice despite higher annual fees. Wyoming only makes financial sense if you need anonymous ownership or have multi-state operations that benefit from Wyoming's tax structure.
Filing Fees & Formation Costs
Delaware charges $90 to form an LLC while Wyoming costs $100, making Delaware slightly cheaper upfront. However, if you operate in Delaware but form in Wyoming, you'll need to register as a foreign LLC in Delaware for approximately $250, plus ongoing registered agent fees of around $150 per year in Wyoming. This hidden cost makes Wyoming formation significantly more expensive for Delaware-based businesses. The total first-year cost jumps from $90 (Delaware only) to roughly $500 (Wyoming formation + Delaware foreign registration + Wyoming registered agent).
Taxes: Delaware vs Wyoming
Both Delaware and Wyoming have no state income tax on LLCs, making them equally attractive from an income tax perspective. Delaware charges a $300 annual franchise tax for LLCs, while Wyoming has no franchise tax and only requires a $62 annual report fee. However, Delaware-based businesses forming in Wyoming still pay Delaware's $300 franchise tax as a foreign LLC, eliminating any tax advantage. Wyoming's tax benefits only apply if you can legitimately establish business operations there and avoid Delaware's foreign LLC requirements.
Privacy & Asset Protection
Wyoming offers superior privacy protection by allowing anonymous LLC formation without requiring member names on public records. Delaware requires disclosure of LLC member information, making ownership details publicly accessible. Both states provide strong charging order protection, limiting creditors' ability to seize LLC assets for personal debts of members. Wyoming's privacy advantage is significant for business owners who prioritize anonymity, but this benefit comes at the cost of maintaining a Wyoming registered agent and potentially complex multi-state compliance.
Annual Maintenance Costs
Delaware LLCs pay $300 annually in franchise taxes due June 1st, while Wyoming LLCs pay only $62 for their annual report due during the anniversary month of formation. However, Delaware businesses formed in Wyoming face double costs: the $62 Wyoming fee plus Delaware's $300 foreign LLC fee, totaling $362 annually. Add Wyoming's registered agent fee of approximately $150 per year, and the total annual cost reaches $512 compared to $300 for a Delaware-formed LLC. Over five years, this difference amounts to over $1,000 in additional costs.
When Wyoming Actually Makes Sense
Wyoming formation makes financial sense for Delaware businesses in limited scenarios: when anonymous ownership is legally required, when you have legitimate business operations in multiple states including Wyoming, or when sophisticated investors specifically require Wyoming formation. High-net-worth individuals seeking maximum privacy protection may find Wyoming's anonymity benefits worth the extra cost. For typical small businesses operating primarily in Delaware, the cost savings and simplicity of local formation far outweigh Wyoming's benefits. Most Delaware entrepreneurs should form locally unless privacy concerns or specific business requirements justify the additional complexity and expense.