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When forming a U.S. business, two of the most popular states are Wyoming and Delaware. Both offer strong legal and tax advantages, but the right choice depends on your business goals.

Why Entrepreneurs Choose Delaware

Delaware is widely recognized as the corporate capital of the U.S. and is home to many Fortune 500 companies.

Best for:

Startups planning to raise venture capital or convert to a C-Corp in the future

Businesses seeking the prestige and investor confidence of a Delaware registration

Key Benefits:

Business-friendly legal system (Delaware Court of Chancery specializes in corporate law)

Well-established case law providing predictability in legal disputes

Preferred by U.S. investors and venture capital firms

Costs in Delaware:

Annual Franchise Tax: $300 (minimum)

State Filing Fee: $90–$100 (depending on entity type)

Why Entrepreneurs Choose Wyoming

Wyoming has become the most popular choice for non-U.S. residents and small business owners running online businesses or e-commerce companies.

Best for:

Non-residents forming a U.S. LLC

E-commerce and service-based businesses with no physical U.S. office

Business owners seeking a cost-effective and simple setup

Key Benefits:

Low annual fees ($60 vs. $300 in Delaware)

Lower state filing fee ($100)

Strong privacy protections (Wyoming does not require member names on public record)

No state corporate income tax

Wyoming vs. Delaware: Quick Comparison

Feature

Wyoming LLC

Delaware LLC

Annual Fees

$60

$300

Filing Fee

$100

$90–$100

Privacy

Strong (members not listed)

Moderate (some disclosures)

Investor Appeal

Less relevant

Highly preferred

Best For

Non-residents, e-commerce

Startups raising capital

Our Recommendation

Choose Delaware if you plan to raise venture capital, convert to a C-Corp, or want the credibility of a Delaware-registered business.

Choose Wyoming if you’re a non-resident or running an online/e-commerce business and want low costs, strong privacy, and simple compliance.

Conclusion

Both Wyoming and Delaware offer excellent environments for forming an LLC. The decision comes down to your business model, growth plans, and budget. For most non-resident entrepreneurs and e-commerce owners, Wyoming is the best choice due to its lower costs and privacy protections. For startups seeking U.S. investment, Delaware is the gold standard.

Still undecided? Check out our full guide: “Wyoming vs Delaware: Which State is Best for Your LLC?”