Is an LLC cheaper in Wyoming or Delaware?

Wyoming is significantly cheaper over time. While Delaware has a slightly lower initial filing fee ($90 vs $100 in Wyoming), Delaware charges a mandatory $300/year annual franchise tax regardless of revenue. In contrast, Wyoming charges only $60/year for its annual report with zero franchise taxes, making Wyoming nearly 3x cheaper over 5 years ($595 vs $1,785).

Why do venture capitalists prefer Delaware over Wyoming?

Venture capitalists prefer Delaware because of its specialized Court of Chancery, which resolves corporate disputes quickly without juries using judges experienced in corporate governance. Delaware also has over a century of predictable legal precedent. Note that VCs almost universally require a Delaware C-Corporation, not a Delaware LLC.

Which state offers better privacy: Wyoming or Delaware?

Wyoming offers superior privacy. Wyoming does not require the names of LLC members or managers to be listed in the Articles of Organization or on public annual reports. Delaware also offers strong privacy for LLCs, but Wyoming was the first state to create the LLC structure in 1977 and has the strongest statutory charging order protections for single-member LLCs.

Can I form a Wyoming LLC if I live in California or New York?

You can, but doing so will usually cost you much more. If you live or operate in California or New York, you must register your Wyoming entity as a Foreign LLC in your home state, which requires paying both states' registration fees and ongoing taxes (such as California's $800/yr franchise tax).

2026 Head-to-Head Comparison

Wyoming vs Delaware LLC: Which is Better in 2026?

Delaware and Wyoming are the two most famous incorporation states in America. But for most small business owners, freelancers, and bootstrapped startups, one of these states is 3x cheaper and offers far better privacy. Here is the definitive breakdown.

Choose Wyoming If:

You want the lowest 5-year cost ($595 vs $1,785 in Delaware)
You want complete anonymous member privacy
You are an e-commerce, real estate, or bootstrapped business
You are a non-US resident needing a cost-effective US presence

Choose Delaware If:

You plan to raise institutional Venture Capital or Angel funding
You plan to convert into a Delaware C-Corp later
You want access to the world-renowned Court of Chancery
Investors explicitly demand a Delaware legal entity

5-Year Total Cost Comparison: Wyoming vs Delaware

Assumes baseline commercial registered agent ($39/yr) and on-time annual filings.

Fee Category	Wyoming LLC	Delaware LLC	Winner
Initial State Filing Fee	$100	$110	Delaware (-$10)
Annual Report / Franchise Tax	$60/year (Annual Report)	$300/year (Franchise Tax)	Wyoming (-$240/yr)
State Corporate Income Tax	0%	0% (if no in-state income)	Tie
Registered Agent (5 Years)	$195 ($39/yr)	$195 ($39/yr)	Tie
Total Estimated 5-Year Cost	$595	$1,805	Wyoming (Saves $1,190)

Calculate Wyoming LLC Cost Calculate Delaware LLC Cost

Legal & Privacy Feature Matrix

Feature	Wyoming	Delaware	Significance
Anonymous Ownership	Yes (Total privacy)	Strong (Agents listed)	Shields personal identity from public searches
Charging Order Protection	Exclusive Remedy (1-Member & Multi)	Exclusive Remedy	Creditors cannot seize LLC assets or force liquidation
Specialized Business Court	Chancery Court (Created 2021)	Court of Chancery (Est. 1792)	No jury, expert judges, fast resolution
Venture Capital Standard	Rarely preferred by Silicon Valley	Universal Standard	VC term sheets mandate Delaware entities

Frequently Asked Questions: Wyoming vs Delaware

Why is Wyoming cheaper than Delaware for an LLC?

Wyoming only charges a $60 minimum annual report fee based on in-state assets. Delaware charges an inescapable $300 annual franchise tax for all LLCs regardless of revenue, assets, or activity. Over 5 years, this difference alone costs $1,200 more in Delaware.

Do I need a Delaware LLC to raise money from investors?

Most institutional venture capitalists will not invest in an LLC at all—they require a Delaware C-Corporation to issue preferred stock and stock options. If you are forming an LLC for now, starting in Wyoming saves money, and you can easily convert to a Delaware C-Corp later if you close a funding round.

Should I just register in my home state instead?

If you are an ordinary business owner operating a storefront, consulting practice, or local service in your home state, you should register in your home state. Forming in Wyoming or Delaware will simply require you to register as a Foreign LLC in your home state, forcing you to pay double the registration and annual fees.

LLC Cost by State (Full 50-State Table)

Filter and sort all 50 US states by initial filing and ongoing report fees.

Rankings

Cheapest States to Form an LLC

Learn which states have $0 annual fees and how to avoid dual-state penalty fees.