Delaware and Wyoming are the two states non-U.S. founders ask about most. Both let you own an LLC without living in the United States, and both are known for flexible LLC laws. The better choice depends on what the company does, who your customers and investors are and how much you want to pay each year to keep it active.
The short answer
If you run a small online business or consulting company alone and want low yearly state costs, Wyoming is usually the cheaper place to keep an LLC. If you plan to raise money from U.S. investors or want the large body of Delaware business law and court decisions, Delaware is the usual pick. Neither state removes your federal tax filings, and neither is automatically right for every company.
Yearly state costs compared
| Delaware LLC | Wyoming LLC | |
|---|---|---|
| Recurring state payment | Annual tax of $400, due June 1 | Annual report license tax of $60 or $.0002 of assets in Wyoming, whichever is greater |
| Annual report | None for LLCs | Yes, due by the first day of the anniversary month |
| Registered agent | Required | Required |
For a Wyoming LLC with Wyoming assets of $300,000 or less, the $60 minimum applies. Both states change their fees from time to time, so confirm the current amounts on the state websites before you decide.
When Delaware makes sense
- You expect to raise venture capital or sell the company, and investors prefer Delaware entities.
- You may convert to a Delaware corporation later and want the same legal environment.
- Your contracts or partners ask for Delaware law.
When Wyoming makes sense
- You run a small online business, freelance practice or online store and want predictable low costs.
- You do not need Delaware-specific court precedent.
- You prefer to keep fees and paperwork as simple as possible.
What does not change with the state
- Federal tax filings. A foreign-owned single-member LLC usually has to file Form 5472 with a pro forma Form 1120 every year, whichever state it is in. See our Form 5472 guide.
- The EIN. You still need an EIN for banking and tax filings. See how to get an EIN without an SSN.
- The registered agent. Both states require a registered agent with a physical address in the state. See what a registered agent does.
- Where the business operates. If you have customers, employees or an office in another state, that state may require its own registration.
How to decide
- Write down where your customers and any investors are.
- Estimate your yearly cost in each state, including the registered agent.
- Check whether any platform, bank or partner you rely on has a state preference.
- Choose the simpler and cheaper option unless you have a clear reason for Delaware.
Frequently Asked Questions
Can a non-U.S. resident own a Delaware or Wyoming LLC?
Yes. Neither state requires the owner to be a U.S. citizen or resident, although you do need a registered agent address in the state.
Is Wyoming always cheaper than Delaware?
For a small LLC with few Wyoming assets, the yearly state payment is lower in Wyoming. Filing fees and registered agent fees also differ by provider, so compare the total cost.
Does the state change my U.S. taxes?
Not by itself. Federal tax treatment depends on the LLC's tax classification, the owner and the type of income. You may also have obligations in other states if you operate there.
Can I move my LLC to another state later?
Yes. A move is called a domestication or conversion. See our LLC domestication guide.
Ready to form? See our LLC formation service for non-residents, or ask us which state fits.
