Delaware LLC vs Wyoming LLC — Which Is Best for International Founders?
Both Delaware and Wyoming are popular choices for non-US residents forming a US LLC. They differ significantly in annual fees, privacy, and investor perception. Here's everything you need to know.
| Aspect | Delaware LLC | Wyoming LLC |
|---|---|---|
| Annual Franchise Tax | Flat annual fee, due June 1 every year | Lower flat annual fee than Delaware |
| Annual Report Filing | Not required for LLCs — franchise tax payment is the only annual obligation | Required every year on the formation anniversary, bundled with the annual fee |
| State Income Tax | 0% (no state income tax on LLCs) | 0% (no state income tax) |
| Privacy | Member names public in some filings | Strong anonymity — members not listed publicly |
| Investor Preference | Strongly preferred by VCs and investors | Less common for VC-funded startups |
| Court System | Court of Chancery — most developed in the US | Standard state courts |
| Formation Cost with Corpyo | From $499 | From $299 |
| Best For | VC-backed startups, investor-ready structure | Freelancers, consultants, privacy-conscious founders |
🏆 Verdict
Choose Delaware if you plan to raise VC funding or need the most legally respected US structure. Choose Wyoming if you want lower annual fees and stronger privacy protections.
Frequently Asked Questions
Which is better for a non-US resident, Delaware or Wyoming LLC?
Wyoming is more cost-effective and private. Delaware is preferred if you plan to raise venture capital. For solo founders and freelancers, Wyoming is usually the better choice.
Can I change from Wyoming to Delaware LLC later?
Yes, it's possible to convert/domesticate an LLC between states. Corpyo can guide you through this process.
Do I need to pay US federal tax with a Wyoming or Delaware LLC?
Neither state charges its own income tax, but a single-member LLC owned by a non-resident with no US-source income still needs an EIN and generally must file IRS Form 5472 with a pro forma 1120 annually — this is a federal filing requirement independent of which state you incorporate in. Corpyo obtains your EIN as part of formation.
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