Pick any two founders forming a US company from abroad and odds are both of them googled the same thing: Wyoming or Delaware? The Wyoming vs Delaware LLC for non-residents question looks complicated from the outside, but it comes down to a handful of concrete differences: what you pay up front, what you pay every year, who can see your name in public records, and what investors expect if you ever raise money.
Here is the honest version most formation services will not give you. For the majority of non-resident founders, Wyoming is the better default. It costs less every single year, keeps your name out of public databases, and changes nothing about your banking or federal taxes. Delaware earns its reputation in one specific scenario: startups raising money from US venture capital.
This guide puts both states head to head on the things that actually affect a foreign owner, then closes with a verdict by founder profile so you can stop researching and start filing.
The short answer
Choose Wyoming if you are an Amazon seller, freelancer, agency owner, or consultant running your own business with your own money. You get the lowest annual cost of any serious formation state, strong privacy, and no state income tax.
Choose Delaware if you are building a startup and plan to raise from US investors. Their entire world runs on Delaware entities, and fighting that convention will cost you more than the few hundred dollars a year you would save in Wyoming.
If neither profile fits you cleanly, or you are also weighing states like New Mexico or Florida, our guide on which state you should choose walks through the full decision tree.
Formation cost and speed: nearly a tie
Wyoming charges $100 to file an LLC. Delaware charges $110. Both states typically approve a clean filing in 3 to 7 business days, and neither requires you to visit, hold a US visa, or have a US address of your own.
Brio forms your LLC in either state for $1 plus the state fee, so the up-front math should not drive this decision. The number that matters is what each state charges you in year two, year three, and every year after that.
Annual costs: a $60 report vs a $400 tax
This is the biggest practical difference between the two states. Wyoming charges an annual report fee starting at $60. Delaware charges every LLC a flat $400 franchise tax, due June 1 each year, whether you made a million dollars or never opened for business.
Stretch that over five years and the gap is real money for a bootstrapped founder: roughly $300 in Wyoming against $2,000 in Delaware, before you sell a single product. Both states also require a registered agent with an in-state address, which Brio includes, so that cost is a wash.
Want the complete picture for your specific situation, including agent and filing costs? Run your numbers through our LLC cost calculator.
Wyoming vs Delaware at a glance
| Factor | Wyoming | Delaware |
|---|---|---|
| State filing fee | $100 | $110 |
| Annual cost | Annual report from $60 | $400 flat franchise tax |
| State income tax | None | Typically none for LLCs operating outside Delaware |
| Owner names in public records | No | No, not on formation documents |
| Courts | Standard state courts | Chancery Court with deep business case law |
| Investor perception | Neutral | The default for US venture capital |
| Best for | E-commerce, freelancers, agencies, holding companies | Startups raising US VC |
Privacy: Wyoming by a clear margin
Wyoming does not require member or manager names in its public filings, and it has built its reputation on keeping things that way. Search a Wyoming LLC and you will typically find the company name and the registered agent, not you.
Delaware is more private than most people assume. The Certificate of Formation lists the registered agent, not the owners. But Delaware’s ecosystem is built for corporate transparency toward investors and courts, not personal privacy, and that shows in how the two states market themselves.
One federal note that surprises founders: as of FinCEN’s 2025 interim final rule, US-formed companies are exempt from beneficial ownership (BOI) reporting, while foreign companies registered to do business in the US must still file. Rules in this area change, so confirm the current requirement when you form. And remember that privacy from public searches is not privacy from the IRS: your federal filings identify you either way.
Courts and investors: Delaware’s home turf
Delaware’s Court of Chancery hears business disputes without juries, decides them fast, and has produced decades of predictable case law. That is why lawyers and venture funds default to it. When a US investor wires you money, their counsel expects Delaware paperwork they have seen a thousand times.
Here is the nuance most articles skip: if you get to a priced venture round, investors will usually want a Delaware C-Corp, not an LLC of any state. So the real sequence for a venture-track founder is a Delaware entity from day one, or a conversion later. Our LLC vs C-Corp guide breaks down when each structure makes sense.
If you are bootstrapping and never plan to raise, none of this applies to you. You would be paying $400 a year for a courtroom you will almost certainly never enter.
Banking and federal taxes: identical either way
Neither state gives you an edge at the bank. Mercury and Wise both accept remotely opened accounts for non-resident-owned US LLCs from Wyoming or Delaware alike (Mercury excludes some countries), while traditional banks like Chase or Bank of America usually want an in-person visit regardless of where you formed. The paperwork is the same, and we cover it step by step in our guide to opening a US business bank account from abroad.
Federal taxes do not care about your state either. A single-member foreign-owned LLC files Form 5472 attached to a pro-forma 1120 each year, and missing it carries a $25,000 penalty. If you have US-source income effectively connected to a US trade or business, you may also need a 1040-NR. A multi-member LLC files Form 1065 with K-1s and handles foreign-partner withholding. Those obligations are identical whether your certificate says Wyoming or Delaware.
You will need an EIN in both states before you can open an account. The IRS typically takes 2 to 4 weeks for non-residents; Brio gets it done in about 10 days as part of formation.
The verdict by founder profile
- Amazon or e-commerce seller: Wyoming. Low annual cost, strong privacy, and marketplaces do not care which state you picked.
- Freelancer, consultant, or agency owner: Wyoming. You are the only owner, and nobody is doing due diligence on your charter documents.
- Startup planning to raise US venture capital: Delaware. Meet investors where they live, and settle the C-Corp question before you file.
- Holding company for assets or IP: Wyoming. Strong charging-order protection and a minimal public footprint.
- Genuinely unsure: Wyoming is the safer default. Moving to Delaware later is possible, while paying Delaware $400 a year for optionality you never use is just a leak.
Whichever way you land, Brio forms your LLC in either state for $1 plus the state fee, with registered agent, EIN, and the annual federal filings handled by one team. And if your situation has a tax wrinkle, book a free tax consultation before you file rather than after.
Frequently asked questions
Is Wyoming or Delaware better for a non-resident LLC?
Wyoming is better for most non-resident founders: it costs $100 to file with an annual report starting at $60, has no state income tax, and keeps owner names out of public records. Delaware is better if you plan to raise from US venture investors, who treat Delaware entities as the standard.
Do I pay state income tax in Wyoming or Delaware if I live abroad?
Wyoming has no state income tax at all. Delaware typically does not tax LLC income earned outside the state, so most non-resident owners pay state income tax in neither. Your federal obligations, like Form 5472 for a single-member foreign-owned LLC, apply in both states, so plan for those regardless.
Can I move my LLC from Delaware to Wyoming later?
In most cases yes, through a process called domestication, which both states allow. It involves filings in both states plus some cost and downtime, which is why we suggest choosing deliberately up front rather than treating the state as a temporary decision.
Does my choice of state affect opening a US bank account?
Not meaningfully. Mercury and Wise accept remotely opened accounts for non-resident-owned LLCs from either state, and traditional banks usually require an in-person visit no matter where you formed. What actually matters is having your formation documents and EIN in order.
Do I need a Delaware C-Corp to raise venture capital?
It is not a legal requirement, but it is the strong market convention. Most US venture funds expect a Delaware C-Corp at a priced round, and many will ask an LLC to convert first. If fundraising is the plan, start with the entity investors expect.
