Comparison
Delaware LLC vs Wyoming LLC โ US State Comparison
Wyoming LLC wins for non-resident founders who just need US banking and payment processor access โ it's cheaper (USD 100 vs USD 90โ200 formation; USD 60/year vs USD 300+ ongoing), has better privac...
March 2026 3 min read
The comparison
| Factor | Wyoming LLC | Delaware LLC |
|---|---|---|
| Formation fee | $100 | $90โ200 |
| Annual report fee | $60/year | $300+ (franchise tax minimum) |
| Registered agent | ~$125/year | ~$100โ300/year |
| Privacy | Strong (no public member names) | Less privacy (some disclosure) |
| Asset protection | Strong charging order protection | Good |
| Court | No dedicated corporate court | Court of Chancery (world-class corporate law) |
| VC backing | Less preferred | Preferred by US VCs |
| Series LLC | Available | Available |
| State income tax | 0% | 0% (on out-of-state income) |
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When Delaware matters
Delaware's Court of Chancery has over 200 years of corporate law precedent. When VCs invest in a Delaware LLC or C Corp, their lawyers have established template documents, clear legal expectations, and predictable outcomes for disputes.
- Use Delaware when:
- Raising institutional VC from US investors
- You have multiple member investors who want clear legal protections
- You plan to convert to a C Corp for stock options and VC rounds
- Your business is complex enough that corporate law sophistication matters
- Use Wyoming when:
- You're the sole or primary owner
- You want the lowest possible annual cost
- Maximum privacy is important
- You're using the LLC purely for banking and payment processor access
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.