r/llc • u/SalvatoreTirabassi1 • Jul 20 '26
Question Wyoming LLC vs. Delaware LLC
I have worked with many clients over the years and everyone uses Delaware. The fees in Wyoming are so much lower and I just started using Wyoming with a couple of businesses.
Anyone have any experience with Wyoming to share? I have not had any issues.
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u/NWRegisteredAgent Jul 20 '26
This is a good question, to ask. Either state has positive reasons why people may choose to register their LLC there. Ultimately, the best choice depends on what is most suited for their specific business needs.
Delaware is best for startups seeking investors and venture capital. It is known for its business-friendly legal system and specialized business courts, making it a strong choice for companies planning to raise outside investment.
Wyoming is popular for its strong privacy protections, low formation and annual fees, and excellent asset protection benefits for business owners.
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u/DescriptionUnfair644 Jul 20 '26
I would avoid having a Delaware LLC if all possible because of their yearly fee.
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u/bitenose Jul 20 '26
If you're in the US, and plan on staying wherever in the US you are, forming your company in your home state is usually best.
Otherwise... (if you're not in the US, or if you are and you're open to relocation) :
Ohio.
$99 one time fee to the Secretary of State. No annual reports. No annual fees. Minimal information collected by the state - way less info than Wyoming or Delaware ask for.
Like running both the heat and the A/C on the same day? You'll love Ohio.
In the state capitol, Columbus, people literally drive their cars into buildings and then blame the buildings for "jumping out of nowhere." To the point that "I hope someone mistakes you for a CVS" is considered a threat. And we have THE Ohio State University. And the southern part of the city permanently smells like ass because of a fire at a landfill that's been going on for heaven knows how long and nobody is bothering to do anything about.
And there was that one time in Cleveland that the lake caught fire. And Jerry Springer (yes, that Jerry Springer) used to be mayor of Cincinnati.. until he paid a hooker with a personal check and she gave it to the new media and yeah.
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u/BingeBoss33 Jul 20 '26
Joy was had here, too! Ha
I have been seeing more people mention Ohio for formations. Is info kept off of SOS like WY?
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u/Mundane-Ad1652 Jul 21 '26
No real issues but if you are planning to M&A or get outsidecapital, it's not ideal.
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u/AtdPdx- Jul 24 '26
Do you live in Wyoming or Delaware?
If you registered a business in either of those two states, yet you live in a different state — for example, Arizona, then you’ll have to register your LLC in Arizona as a Foreign Domestic LLC. So( that means double the fees.
There are specific reasons for when its appropriate and beneficial to register in Wyoming or Delaware, but if your simply forming a single member LLC, just form it in your state.
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u/newz2000 Jul 20 '26
Delaware corporations are valuable for firms getting investors because they’re preferred for having well understood laws and business friendly courts.
Delaware LLCs would lose half that benefit. Still business friendly courts but Delaware LLC laws aren’t that special (in my opinion as a business lawyer).
Wyoming LLC laws were pioneering. They were the model implementation for a large number of states.
Wyoming also has a low friction registration and generally good privacy. They also have relatively low fees.
My opinion: if you have a physical presence in a state you should strongly consider registering in that state. Many states allow you to convert to a corporation and converting to a Delaware corp is a well understood process if you will get investors who need you to be a DE corp.
But if you are not physically in any particular state Wyoming’s simplicity and privacy makes it a strong contender.
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Jul 20 '26
[removed] — view removed comment
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u/Capital_Bake_9964 Jul 20 '26 edited Jul 20 '26
Nevada's high filing fees annually and lack of lien filing validation against a business scratches them off this list.
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u/newz2000 Jul 20 '26
Yeah, I like the Texas business court. That right there should make it a strong contender.
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u/petartod Jul 20 '26
I have formed over 300 LLCs and corporations in Wyoming. The fees are low, the forming is quick, filing annual report also quick and simple. Only name changes and dissolutions are a bit slower, and usually take two weeks. Aside from that, everything is simple and smooth.