Wyoming and Delaware are the two states non-resident founders compare most often, and the marketing around both can make the choice feel harder than it is. The reality: for most non-residents running an online business, Wyoming wins on cost and simplicity, while Delaware earns its premium only in a specific situation, raising venture capital.
This guide compares the two on the things that actually matter: filing fees, annual costs, privacy, and taxes, then gives a straight answer for non-resident founders. It builds on our guide to starting a US LLC as a non-resident and our non-resident tax guide.
In this guide
The short answer
If you want the quick version
Choose Wyoming if you are a freelancer, SaaS, agency, or ecommerce founder operating online with no plans to raise US venture capital. Choose Delaware if you intend to raise from US VCs or convert to a C-corp later. For everyone else, Wyoming is cheaper, just as private, and widely accepted.
Wyoming LLC at a glance
Wyoming pioneered the LLC in the US and built a reputation as a low-cost, privacy-friendly state with no state income tax. For non-residents with no physical US footprint, it hits the sweet spot of cheap to start, cheap to keep, and trusted by banks and payment processors.
- Low one-time filing fee and a small annual report fee.
- No state income tax and no franchise tax.
- Owner names are not listed in the public formation record.
- Widely accepted by Mercury, Relay, Wise, Stripe, and others.
Delaware LLC at a glance
Delaware is the default home of large US corporations and venture-backed startups. Its draw is legal: a dedicated business court (the Court of Chancery), decades of case law, and investor familiarity. That matters enormously if you are raising money, and very little if you are not.
- Trusted by US venture capital and institutional investors.
- Mature corporate law and a specialized business court.
- Flat annual franchise tax for LLCs, higher than Wyoming's annual fee.
- Easy path if you later convert to a Delaware C-corp.
Formation cost
The upfront cost to form the LLC is broadly similar in both states, so formation price is rarely the deciding factor. The cost difference that actually matters shows up in annual upkeep, covered next. With usllc.io, a Wyoming LLC is formed all-inclusive for $299, covering the state filing, EIN application, US business address, and Operating Agreement; see pricing for details.
Annual fees and ongoing costs
This is where the two states genuinely diverge. Wyoming charges a small annual report fee, while Delaware levies a flat franchise tax on every LLC, due each year regardless of activity. Over the life of the company, the difference adds up.
| State | Recurring state cost | When due |
|---|---|---|
| Wyoming | ~$60/yr annual report | Anniversary month |
| Delaware | $300/yr franchise tax | June 1 each year |
Privacy
Both states are strong on privacy and neither lists member names in the public formation filing, so your ownership is not broadcast in the state record either way. In practice, the privacy difference between them is small for a non-resident owner.
Wyoming is often marketed as the more private option and has a long-standing reputation for it, but you should not pick one over the other on privacy alone. Note that privacy in the state record is separate from federal reporting obligations, which apply regardless of state.
Taxes
Neither state imposes income tax on an LLC’s income earned outside the state, so for a non-resident operating from abroad, state income tax is typically a non-issue in both. The difference is Delaware’s flat franchise tax, which is a fixed annual cost rather than a tax on profit.
Federal tax and filing rules are identical no matter which state you choose, because the LLC is a pass-through and federal obligations attach to the entity type, not the state. We cover those in detail in the non-resident tax guide, including the Form 5472 filing that applies in either state.
State choice does not change your federal filings
Whether you form in Wyoming or Delaware, a foreign-owned single-member LLC still files Form 5472 with a pro-forma 1120 each year. Do not pick a state expecting it to remove federal duties.
Banking and processor acceptance
Both Wyoming and Delaware LLCs are well recognized by the US fintech banks and processors non-residents rely on, including Mercury, Relay, Wise, and Stripe. Neither state puts you at a disadvantage here, so banking should not drive the decision between these two.
Head-to-head comparison
| Factor | Wyoming | Delaware |
|---|---|---|
| Recurring state cost | ~$60/yr report | $300/yr franchise tax |
| State income tax (foreign income) | None | None |
| Owner privacy in state record | High | High |
| Bank and processor acceptance | Wide | Wide |
| Best for | Online businesses, cost focus | VC-backed startups |
| Specialized business court | No | Yes (Court of Chancery) |
When Delaware actually wins
Delaware is the right call in a narrow set of cases, and they are worth taking seriously if they apply to you:
- You plan to raise money from US venture capital firms, who expect Delaware.
- You intend to convert to a Delaware C-corp as you scale or join an accelerator.
- You want the predictability of Delaware's mature corporate case law for complex ownership or disputes.
If none of these describe you, Delaware's franchise tax is simply a recurring cost without a matching benefit.
Why most non-resident founders choose Wyoming
For the typical non-resident, a freelancer, agency, SaaS, or ecommerce seller running everything online, Wyoming gives the same core benefits as Delaware at a lower ongoing cost and with no downside in banking or privacy. You get an entity that processors trust, no state income tax, owner privacy, and a smaller annual bill.
That is why Wyoming is the most common choice among non-resident founders and the majority of usllc.io customers. Unless you are specifically optimizing for US fundraising, Wyoming is the practical default.
Why most usllc.io customers choose Wyoming
Low cost, strong privacy, no state income tax, and wide bank and processor acceptance. We form your Wyoming LLC, US address, and EIN for an all-inclusive $299, handled remotely.