Wyoming vs Delaware LLC for Non-Residents: Complete 2026 Comparison Guide
If you live outside the US and want a US company, the Wyoming vs Delaware LLC for Non-Residents question will come up within the first hour of research. Every formation service has an opinion, and most of those opinions come with a sales pitch attached.
Here is the plain version. For most non-resident freelancers, agencies and online sellers, Wyoming is the cheaper and simpler choice. Delaware makes sense when you plan to raise money from US investors. The rest of this guide explains why, with real numbers, so you can decide for yourself.
This Wyoming vs Delaware LLC for Non-Residents guide covers costs, privacy, taxes and the IRS paperwork most articles skip.
Wyoming vs Delaware LLC for Non-Residents: The Quick Comparison
| Wyoming LLC | Delaware LLC | |
|---|---|---|
| State formation fee | $100 | $110 |
| Yearly state cost | $60 minimum (annual report) | $400 flat tax from tax year 2026 (was $300) |
| When it’s due | First day of your formation anniversary month | June 1 each year |
| State income tax | None | None on income earned outside Delaware |
| Owner names on public filings | Not required | Not required |
| Courts | Business-friendly | Court of Chancery, very well respected |
| Best for | Freelancers, agencies, online sellers | Startups planning venture funding |
These are state fees only. A registered agent, which both states require, costs extra, and so does any formation service you use. Always confirm the latest amounts on the Wyoming Secretary of State and Delaware Division of Corporations websites, because fees do change.
What Both States Have in Common
Before the differences in Wyoming vs Delaware LLC for Non-Residents, it helps to know what you get either way.
You can form an LLC in either state from anywhere in the world. No visa, no US address of your own, no Social Security number. You’ll appoint a registered agent, who gives the state a physical address in that state and receives legal mail on your behalf. You can own the company 100% as a single member, and the IRS will treat the LLC as a disregarded entity by default.
You’ll also face the same federal paperwork whichever state you choose: an EIN and, if you’re a foreign owner of a single-member LLC, Form 5472 every year. More on that below, because it matters more than the state fee.
Cost in the Wyoming vs Delaware LLC for Non-Residents Decision
When people compare Wyoming vs Delaware LLC for Non-Residents, cost is where the gap shows up first, so let’s do the maths.
Wyoming charges $100 to form the company and a minimum of $60 a year after that. The annual figure is technically the greater of $60 or a small percentage of your assets located in Wyoming. For a typical online business with no physical assets there, you pay the $60 minimum. You file the annual report by the first day of the month your LLC was formed, and if it stays unpaid for 60 days the state can dissolve the company.
Delaware charges $110 to form. There’s no annual report, but there is a flat annual tax instead, due every June 1. For years that tax was $300. It was raised to $400 starting with the 2026 tax year, and the first $400 payment falls due on June 1, 2027.
Over five years, state fees alone come to roughly $400 in Wyoming and roughly $2,100 in Delaware. If your business earns a few thousand dollars a month, that gap is real money you’d rather keep.
Add a registered agent to either. Prices vary widely, often between $50 and $300 a year. That cost is the same in both states, so it doesn’t change the comparison.
Privacy: Closer Than the Marketing Suggests
You’ll read a lot of claims that Wyoming is far more private. It’s worth being careful.
On privacy, the Wyoming vs Delaware LLC for Non-Residents gap is smaller than most guides admit. Neither state requires you to list the names of members or managers in the public formation document. In both cases, the public record shows the company and its registered agent rather than you.
What matters more is what happens outside the registry. Your bank will know who you are. The IRS will know who you are, through your EIN application and your annual filings. Payment processors will verify you. An LLC protects you from casual public lookups, but it isn’t a way to hide from financial institutions or tax authorities, and anyone telling you otherwise is selling something.
Asset Protection in Wyoming vs Delaware LLC for Non-Residents
Both states give you a decent level of protection. In general, if someone wins a personal judgment against you, their ability to reach into your LLC is limited to a “charging order,” which gives them a claim on distributions but not control of the business. Wyoming has built a particular reputation here, including for single-member LLCs. Delaware’s law also provides charging order protection.
If asset protection is your main reason for forming, talk to a US attorney. This area is technical, and the details depend on your situation and where you live.
Where Delaware Earns Its Higher Price
Delaware isn’t popular by accident. Its Court of Chancery handles business disputes using experienced judges rather than juries, and its company law is mature and predictable. For investor-backed startups, the Wyoming vs Delaware LLC for Non-Residents answer flips toward Delaware.
The key point is investors. Most US venture capital firms expect to invest in a Delaware company, and they usually prefer a Delaware C-Corporation over an LLC. If your plan is to raise venture funding, starting in Delaware, or converting later, avoids friction. If you’re bootstrapping, selling services or running an online store, that advantage rarely comes into play, and you’d be paying a premium for something you won’t use.
You can also start in Wyoming and move to Delaware later if investors ask for it. It takes some paperwork, but it’s a common path and not a trap.
Taxes: The Part Most Guides Skip
“No state income tax” doesn’t mean “no tax.” Read this section twice.
Taxes work the same in the Wyoming vs Delaware LLC for Non-Residents comparison, because federal rules apply to both. A single-member LLC owned by a non-resident is normally a disregarded entity for US federal tax. If your LLC has no US trade or business and no US-sourced income, which is the usual situation for a foreign freelancer serving clients abroad, it generally owes no US federal income tax. Your home country, however, may tax that income, and the rules differ a lot from place to place. If you earn income connected to a US trade or business, US tax can apply.
Then there’s the filing that catches people out. A foreign-owned single-member US LLC generally has to file Form 5472 with a pro forma Form 1120 every year, even if the company earned nothing. The penalty for failing to file is $25,000 per form. It applies equally to both states, so it isn’t a reason to pick one, but it belongs in your yearly budget.
So your real annual cost is the state fee, the registered agent and the Form 5472 filing. Wyoming still comes out cheaper, but plan for all three.
After You Form Your LLC
Whichever way you go in the Wyoming vs Delaware LLC for Non-Residents choice, formation is only the beginning. Here is what usually comes next:
Calendar your deadlines. That means the Wyoming annual report or the Delaware June 1 tax, plus your Form 5472 filing.
Get your EIN. If you don’t have an SSN, apply to the IRS using Form SS-4, usually by fax or phone.
Write an operating agreement. Even a one-person LLC benefits from one, because it documents ownership and shows the company is separate from you.
Open a business bank account. Our guide to Mercury vs Relay Financial vs Wise Business covers the main options, and our overview of US business bank accounts for non-residents explains how approval works.
Connect your payment tools. Set up Stripe or PayPal and keep business and personal money separate from the very first transaction.
Which Should You Pick in the Wyoming vs Delaware LLC for Non-Residents Choice?
Choose Wyoming if you’re a freelancer, consultant, agency owner or online seller, if you want the lowest yearly cost, and if you have no plans to raise venture capital soon.
Choose Delaware if you expect to raise money from US investors, if you may convert to a C-Corporation, or if a partner or advisor specifically requires a Delaware entity.
Not sure? Wyoming is the safer, cheaper default for most non-resident small businesses, and you can always move to Delaware later.
Frequently Asked Questions
Which state is cheaper in the Wyoming vs Delaware LLC for Non-Residents comparison?
Wyoming. It costs $100 to form and $60 a year at the minimum, compared with Delaware’s $110 formation fee and $400 annual tax.
Is my name public in the Wyoming vs Delaware LLC for Non-Residents comparison?
Neither state requires member or manager names in the public formation document. Your name will still appear in bank, IRS and payment processor records.
Do I need to visit the US to form an LLC?
No. You can form in either state remotely, usually through a registered agent or a formation service.
Do I need a US address?
For a Wyoming vs Delaware LLC for Non-Residents setup, you need a registered agent with a physical address in the state where you form you need a registered agent with a physical address in the state where you form. For banking and mail you may want a US mailing address too, which many agents provide.
Do I need to file taxes if my LLC earned nothing?
You may still have to file Form 5472 with a pro forma Form 1120 each year. Missing it risks a $25,000 penalty.
Can I open a US bank account in the Wyoming vs Delaware LLC for Non-Residents comparison?
Often yes, through fintech providers, but approval isn’t guaranteed and each provider sets its own rules, including which countries it supports.
Can I switch from Wyoming to Delaware later?
Yes. Many founders pick Wyoming first in the Wyoming vs Delaware LLC for Non-Residents decision and convert when investors require Delaware.
The Bottom Line on Wyoming vs Delaware LLC for Non-Residents
For most non-resident entrepreneurs, Wyoming gives you the best mix of low cost and simplicity. Delaware earns its higher price when you’re building a venture-backed startup. Whichever state you choose, the steps after formation, your EIN, your bank account and your yearly Form 5472, matter just as much as the state itself.
Once your state formation is complete, the next immediate step is to Get EIN Number for Non-US Residents to unlock corporate banking.
If you remember one thing from this Wyoming vs Delaware LLC for Non-Residents guide, make it this: pick the state that fits your next two years, not your most ambitious daydream. You can change later, but paying for features you don’t use starts costing you immediately.
This article is general information, not legal or tax advice. Fees and rules change, so confirm current details with the Wyoming Secretary of State, the Delaware Division of Corporations and the IRS, and speak with a qualified US tax professional before you form.
