State comparison · State fees in USD as of October 12, 2026
Delaware vs Wyoming LLC: 2026 Real Cost Comparison for Non-US Residents
Most comparisons stop at the price gap: Delaware's $400 annual LLC tax versus Wyoming's $60 minimum annual report. That's about $340 a year. But cost is only part of the decision. Privacy, ongoing filings, legal certainty and how your business may grow all matter too.
Key takeaways
- Wyoming has lower formation and annual state fees, but requires an annual report every year.
- Delaware costs more each year, has no annual report for LLCs, and gives access to its Court of Chancery.
- Both states offer limited liability and charging-order protection. Wyoming isn't automatically stronger.
- Delaware is often the better fit for founders planning to grow or raise investment. Wyoming suits small, simple businesses focused on the lowest annual fee.
Delaware vs Wyoming at a glance
| Delaware | Wyoming | |
|---|---|---|
| State formation fee | $110 | $100 (about $102–$103 online) |
| Annual state cost | $400 flat LLC tax, due June 1 | $60 minimum annual report license tax |
| Annual report | Not required for LLCs | Required, due 1st of your formation anniversary month |
| Owner names in formation filing | Not required | Not generally required |
| State sales tax | None | Yes, plus possible local tax |
| Business court | Court of Chancery | Standard courts |
| Charging-order protection | Yes | Yes |
Sources: Delaware Division of Corporations, Wyoming fee schedule. These are state fees only, not provider service fees.
Formation fees
Wyoming: $100 state fee
Wyoming charges $100 to file by mail, and about $102–$103 online after the card processing fee. Online filings are processed quickly, so there's no separate expedited option.
Delaware: $110 state fee
Delaware charges $110 for standard processing, only slightly more than Wyoming. Paid expedited options are available, which can help if you're timing formation around banking or a launch. See the full Delaware LLC cost breakdown for what VALIS's setup includes.
Annual costs that matter
Delaware: $400 flat annual LLC tax
Every Delaware LLC pays a flat $400 a year, due June 1, whatever its revenue or activity. Delaware LLCs don't file an annual report. That keeps things simple: pay the tax, keep a registered agent, and there's no yearly filing to manage.
Wyoming: $60+ annual report
Wyoming LLCs file an annual report by the first day of their formation anniversary month (Wyoming Business Division). The fee is the greater of $60 or 0.0002 × the value of company assets located and employed in Wyoming. Up to $300,000 of such assets, you pay $60. Most online businesses run from abroad have few or no assets in Wyoming, so they pay the minimum.
The trade-off is one extra filing each year. Depending on what details go in it, some founders also pay for address or nominee services to keep their personal information separate, which adds cost.
Registered agent: both states
Both states require a registered agent. Fees usually range from about $25 to $300 a year depending on what's included, such as mail forwarding, a business address, compliance reminders or annual report help. For non-residents who can't receive legal papers in the state, a reliable agent matters.
Tax considerations for international owners
Forming in Delaware or Wyoming doesn't automatically mean state income tax in that state. It depends on where the business operates, where work is done, and whether you have US employees, inventory or offices that create tax ties to a state.
Sales tax: Wyoming has a state sales tax and local taxes may apply. Delaware has no general sales tax. What matters in practice is your business model and where your customers are.
Federal filings are the same in both states. Since March 2025, US companies are exempt from beneficial ownership (BOI) reporting to FinCEN; foreign companies registered in the US may still need to report. A foreign-owned single-member LLC may need to file Form 5472 with a pro forma Form 1120 when it has reportable transactions (IRS guidance). Missing or incomplete filings can bring a $25,000 penalty, so it's worth having someone who knows these rules.
Privacy: what each state actually offers
Delaware doesn't require member or manager names in the Certificate of Formation. The public record mainly shows the LLC name, registered agent and formation details. With no annual report, there's no yearly public filing that could reveal more over time.
Wyoming also doesn't generally require owner names at formation. But the yearly annual report adds an ongoing filing, and some founders use extra services to keep the privacy they want. Wyoming's lower fee doesn't make it automatically the more private choice.
Legal framework
Delaware's Court of Chancery is a specialist business court with experienced judges and no juries, backed by a large body of case law. That brings more predictable outcomes and credibility with investors and partners, which matters if you may add partners, raise money or sell the company.
Wyoming's asset protection is often oversold. Both states give LLCs limited liability and charging-order protection, which limits how a creditor can go after a member's interest. Wyoming law also bars court-ordered audits. In either state, protection depends on keeping finances separate, keeping records, signing contracts in the company's name and meeting your filing duties. An LLC isn't a magic shield.
Which state is right for you?
Delaware tends to fit if you…
- Want no annual report and a predictable flat fee
- Value long-term privacy
- May raise investment or add partners
- Want the Court of Chancery and established case law
Wyoming tends to fit if you…
- Want the lowest annual state fee
- Are fine filing an annual report each year
- Run a small, simple business
- Don't expect investors or complex deals
For founders building a long-term business, Delaware's extra cost of about $340 a year often buys a cleaner structure that won't need rethinking as you grow. But the right state depends on your plans.
Still deciding? Take the state quiz
A few questions about your business suggest a state to discuss with VALIS. It's a starting point, not tax or legal advice.
Take the free state quiz →Delaware vs Wyoming FAQ
How much more does Delaware cost each year?
At the state level, Delaware's flat $400 LLC tax versus Wyoming's $60 minimum annual report is a difference of about $340 a year. Registered agent and other service costs apply in both states.
Is Wyoming better for asset protection?
Not automatically. Both states give LLCs limited liability and charging-order protection. How well any LLC protects you depends mostly on running it properly: separate finances, good records and contracts in the company's name.
Do I pay state income tax in Delaware or Wyoming?
Not automatically. It depends on where the business operates, where work is done, and whether you have US staff, inventory or offices. Confirm your situation with VALIS.
Does the choice of state change my federal filings?
No. A foreign-owned single-member LLC may need to file Form 5472 with a pro forma Form 1120 when it has reportable transactions, whichever state it's formed in.
Get it set up right from day one
VALIS International helps non-US founders with formation, banking setup and ongoing compliance, in either state.
State fees are USD as of October 12, 2026 and can change; check the official sources linked above. This guide is general information, not tax or legal advice.