Delaware vs Wyoming LLC: Tax Filing Comparison

Delaware and Wyoming are the two most popular states for LLC formation. From a tax filing perspective, here's how they compare.

Formation cost

• •Delaware: $90 filing fee
• •Wyoming: $100 filing fee (includes first year annual report)

Roughly equivalent.

Annual state obligations

Delaware:

• •Annual franchise tax: $300 flat fee for LLCs (due June 1)
• •No annual report for LLCs (corporations have one)
• •No state income tax on LLCs with no Delaware operations

Wyoming:

• •Annual report: $60 minimum (due anniversary month)
• •No franchise tax
• •No state income tax

Winner: Wyoming. $60/year vs $300/year, and Wyoming's annual report is simpler.

Federal obligations

Identical for both states. The IRS doesn't differentiate:

• •Same Form 1120 / 1065 requirements
• •Same Form 5472 for foreign-owned LLCs
• •Same FinCEN BOI reporting
• •Same deadlines

Privacy

Delaware: Manager/member names are not on public filings. But the registered agent and authorized person are public.

Wyoming: Similar privacy. No requirement to disclose members/managers in state filings.

Court system

Delaware: Famous Court of Chancery with deep corporate law expertise. Matters more for corporations than LLCs.

Wyoming: Standard state courts. Less corporate law precedent.

When to choose Delaware

• •You're raising VC and investors require it
• •You anticipate complex corporate governance disputes
• •Your attorney specifically recommends it

When to choose Wyoming

• •You want the lowest ongoing costs
• •You're a small LLC or solo founder
• •You value simplicity
• •You don't have investor requirements dictating the state

The bottom line

For most international founders forming a simple LLC, Wyoming is the better choice. Lower annual costs, simpler filings, and the same federal tax treatment. Delaware's advantages (Court of Chancery, corporate law precedent) matter more for venture-backed corporations.