Wyoming vs Delaware — Which State Is Best for an LLC from Abroad (2026)
Wyoming is the better choice for most foreign founders: zero state tax, $60 annual fee (vs $300 in Delaware), strong privacy. Delaware is only for VC investment or an IPO.
Why the choice of state matters so much
In the US, every state has its own laws on business, taxes and annual requirements. The choice affects:
- Annual costs — the difference can be hundreds of dollars
- Taxation — some states impose additional taxes
- Privacy — the level of public information about owners varies
- Banking — some banks prefer certain states
- Legal protection — different levels of asset protection
As a foreign owner, you are not required to register the LLC in the state where you do business. You can pick the most favorable state.
Fee comparison — Wyoming wins decisively
Registration: Wyoming $100 vs Delaware $90
Annual costs:
- Wyoming: $60 (Annual Report)
- Delaware: $350 ($300 Franchise Tax + $50 Annual Report)
Registered Agent: $50-150 in both states
Total over 5 years:
- Wyoming: ~$600-900
- Delaware: ~$2,000-2,500
The difference is $1,000-1,600 over 5 years. If you have no specific reason for Delaware, save the money.
Taxation in the two states
Wyoming: Zero state tax, zero Franchise Tax. The only cost: $60 Annual Report.
Delaware: $300/yr Franchise Tax (fixed). If you do business IN Delaware — additional 2.2-6.6% tax.
Important: Federal taxes are the same for all states. The tax treaty applies everywhere. The choice of state only affects state-level taxation.
Privacy and data protection
Wyoming: Does not require public disclosure of owners. Strong charging order protection laws.
Delaware: Also does not disclose owners publicly. Court of Chancery for fast dispute resolution. Weaker charging order protection.
Both states are good for privacy, but Wyoming has a slight edge in asset protection.
Banking and Stripe — Is there a difference
Mercury accepts LLCs from Wyoming and Delaware equally. Stripe also makes no distinction. Relay, Wise, PayPal — no preferences.
The only exception is New Mexico — some banks delay applications from NM LLCs.
When Delaware does make sense
Delaware makes sense only for:
- VC investment — funds require a Delaware C-Corp
- IPO — Delaware is the standard for public companies
- Multiple owners from different countries — most developed practice for disputes
- Fintech/blockchain — regulatory preferences
If none of the above applies — Wyoming is the right choice.
The other states — NM, FL, TX, NV
New Mexico: Zero Annual Report, but less recognized by banks.
Florida: $138.75 Annual Report, no advantage over Wyoming.
Texas: Franchise Tax on revenue over $2.47M, an unnecessary complication.
Nevada: $500/yr — the most expensive. The marketing is better than the reality.
Ranking: Wyoming > Delaware > New Mexico > Florida > Texas > Nevada
Our recommendation — Wyoming for 90% of cases
Wyoming is ideal for: freelancers, e-commerce, SaaS, digital services, dropshipping, online courses, consulting.
The $300+ annual savings, excellent privacy and simplicity make Wyoming the undisputed favorite for launching a US business from abroad.
Ready? See the full registration guide or contact us for a custom quote.
Frequently asked questions
Can I change states later?
Yes, via the domestication process. But it's easier to pick the right state from the start.
Do I need to live in the state?
No. The Registered Agent is enough.
Is one state better for taxes?
Federal taxes are the same. Wyoming has no state tax — the cheapest option.
Is Delaware easier for banking?
No. Mercury accepts both states equally.
Why are so many companies in Delaware?
Because of the Court of Chancery — important for large corporations, not for small business.