Wyoming LLC vs Delaware LLC (2026)
Compare Wyoming LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | Wyoming | Delaware |
|---|---|---|
| Filing Fee | $100 | $90 |
| Processing Time | 1 day(s) | 7 day(s) |
| Annual Report Fee | $62 | $300 |
| Annual Report Due | Anniversary month | June 1 |
| State Income Tax | No | No |
| Anonymous LLC | Yes | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$100 + registered agent ~$150/yr |
Verdict: Wyoming wins for most businesses
For most Wyoming-based small businesses, forming locally in Wyoming is the clear winner due to lower total costs and simpler compliance. Delaware only makes sense if you need absolute privacy or have specific investor requirements that demand Delaware formation.
Filing Fees & Formation Costs
While Delaware's $90 filing fee is $10 cheaper than Wyoming's $100, this advantage disappears when you factor in the hidden costs. If you form in Delaware but operate in Wyoming, you'll need to register as a foreign LLC in Wyoming (around $100) plus pay for a Delaware registered agent (~$150/year). This means your first-year costs in Delaware are roughly $340 versus just $100 in Wyoming. The initial savings quickly become an expensive mistake for Wyoming-based businesses.
Taxes: Wyoming vs Delaware
Both Wyoming and Delaware have no state income tax on LLCs, making them equally attractive from a tax perspective. Delaware does impose a $300 annual franchise tax, while Wyoming only charges a $62 annual report fee. Neither state requires LLCs to pay minimum taxes or franchise fees beyond their annual filing requirements. For tax purposes alone, Wyoming comes out ahead with significantly lower ongoing costs and no corporate-style franchise taxes.
Privacy & Asset Protection
Both states offer strong privacy protections and allow anonymous LLC formation without requiring member names in public filings. Wyoming and Delaware both have robust charging order protection laws that shield LLC assets from personal creditors of members. Delaware has a longer track record with business-friendly court decisions, but Wyoming's asset protection laws are equally strong and well-established. For typical small businesses, the privacy and protection differences are negligible between these two states.
Annual Maintenance Costs
Wyoming's ongoing costs are substantially lower than Delaware's for most business owners. Wyoming charges just $62 for annual reports due in your anniversary month, while Delaware requires a $300 annual franchise tax due June 1st. If you form in Delaware but operate in Wyoming, you'll pay both states' fees plus Delaware registered agent costs (~$150/year), totaling around $512 annually versus Wyoming's $62. Over five years, this difference amounts to over $2,000 in extra costs for choosing Delaware.
When Delaware Actually Makes Sense
Delaware formation makes sense in specific situations: if you're raising venture capital (many investors prefer Delaware entities), planning to go public eventually, or need the most established body of business case law. Delaware's Court of Chancery provides predictable business dispute resolution that some sophisticated investors value. However, for the vast majority of Wyoming small businesses, sole proprietors, and local companies, these advantages don't justify the extra costs and complexity. Delaware's benefits primarily serve large corporations and venture-backed startups, not typical small business owners.