Wyoming and Delaware are the two most common states for non-resident LLCs. Both are legitimate, both are fully remote and both work with US banks and Stripe. The real differences are yearly cost, admin effort and whether you plan to raise investment. This guide compares them using current 2026 figures.
Quick answer
- Choose Wyoming if you are a single owner or a small team running a service business, agency, SaaS or e-commerce store, and you do not plan to raise venture capital. It is cheaper every year and simpler to maintain.
- Consider Delaware if you plan to raise money from investors, issue equity to many people, or your investors or lawyers require it. In that case founders usually form a Delaware C-corporation rather than an LLC.
Side-by-side comparison (2026)
| Wyoming | Delaware | |
|---|---|---|
| State filing fee to form an LLC | $100 | From $110 (Delaware raised several filing fees on August 1, 2026; we confirm the current fee in your quote) |
| Yearly state obligation | Annual report with license tax: $60 for most small LLCs (the lesser of $60 or $0.0002 per dollar of assets located in Wyoming) | Annual LLC tax of $400 (raised from $300 by House Bill 400, effective for 2026) |
| Due date | First day of the month in which the LLC was formed, every year | June 1 every year |
| Annual report required? | Yes (simple online filing) | No annual report for LLCs, just the tax |
| Late consequences | Loss of good standing; the state can eventually dissolve the LLC | $200 penalty plus 1.5% interest per month on the unpaid tax and penalty |
| State income tax | None | None on income earned outside Delaware by a non-resident LLC |
| Registered agent | Required | Required |
| Owner names in public filings | Not required in the Articles | Not required in the Certificate of Formation |
| Reputation with investors | Good for small businesses | The standard for venture-backed startups |
| Best for | Freelancers, agencies, SaaS, e-commerce, single owners | Companies planning to raise venture investment |
Cost over three years
State fees alone (not counting registered agent, address or accounting, which you pay in either state):
| Wyoming | Delaware | |
|---|---|---|
| Formation | $100 | $110+ |
| Year 1 yearly obligation | $60 | $400 |
| Year 2 | $60 | $400 |
| Year 3 | $60 | $400 |
| Approximate 3-year total | about $280 | about $1,310+ |
Exact timing of the first payment depends on when you form. A Wyoming LLC files its first annual report in its anniversary month the following year. A Delaware LLC pays the tax each June 1 for the previous calendar year.
Why most non-residents choose Wyoming
- Lower yearly cost: $60 instead of $400 is a meaningful saving for a small business, every year.
- Simple upkeep: one short online annual report in your formation anniversary month.
- No state income tax.
- Good privacy: owners do not have to be listed in the Articles of Organization.
- No disadvantage with banks or Stripe: they look at your business, documents and website, not whether you chose Delaware.
When Delaware makes sense
Delaware is the default for startups planning to raise money. Investors and their lawyers know Delaware corporate law and its specialized business court, the Court of Chancery, very well. If you plan to raise venture capital, you will most likely need a Delaware C-corporation, not an LLC. That is a separate decision with different tax consequences, and you should make it with a lawyer.
A Delaware LLC can also make sense if a partner, client or investor specifically asks for it, or if you already have other entities in Delaware.
What is the same in both states
- You need a registered agent with a physical address in the state.
- The EIN is obtained the same way, without an SSN. See EIN without an SSN.
- Federal obligations are the same: a foreign-owned single-member LLC files Form 5472 with a pro forma Form 1120 every year, and the penalty for not filing is $25,000.
- BOI reporting: FinCEN has permanently exempted companies created in the United States from beneficial ownership reporting, so an LLC formed in either state does not file a BOI report.
- Banks and Stripe do not favor one state over the other.
- Your home-country tax obligations do not change with the state you choose.
What about other states?
New Mexico, Florida, Texas and other states also appear in online comparisons, each with its own fees and rules. You can form in any state, but for most non-resident founders none of them clearly beats Wyoming on cost and simplicity. If you have a real presence in a particular state, such as an office, employees or a warehouse, you may have to register there anyway, so tell us about it during the consultation.
Common misconceptions
- “Delaware is more prestigious, so clients will trust me more.” Clients rarely check your formation state. Your website, reviews and professionalism matter far more.
- “Wyoming means no taxes at all.” There is no state income tax, but federal filings still apply, and you may owe tax in your home country.
- “I can switch states later for free.” Moving an LLC to another state (domestication) is possible in many cases, but it costs time and fees. Choose well at the start.
Frequently asked questions
Is Wyoming or Delaware better for Stripe?
Neither. Stripe looks at your business, website and documents, not your formation state.
Which state is better for Amazon or e-commerce?
For most sellers, Wyoming, for the lower yearly cost. Sales tax depends on where your customers and inventory are, not on your formation state.
Do I have to visit the state?
No. Both states allow fully remote formation through a registered agent.
Can I convert a Wyoming LLC to a Delaware corporation later if I raise money?
Often yes, through conversion or by forming a new entity, but plan it with a lawyer when the time comes.
Our recommendation
For most non-resident founders running a business on their own, we recommend Wyoming. If you plan to bring in investors or several owners, let’s talk before you file. See packages. Our published prices apply to Wyoming, and other states get a separate quote.
Not sure what you need? Book a free consultation and get an honest assessment of your case before you commit to anything.
This is a general information guide, not legal or tax advice. Fees and rules change; consult a qualified adviser about your specific situation. Figures checked: September 2026.