Before renewing your company in Delaware this year, you may want to consider moving your existing company to Wyoming through a process known as domestication. While Delaware has historically been the most popular state to form an LLC, Wyoming is often now considered the best state in which to do so. Wyoming offers a business-friendly tax structure with no corporate or personal income taxes, no franchise tax fees, no business licensing fees, and offers the strongest asset protection laws in the nation. Sales tax is a low 4.0%.
It is also considerably less expensive to operate a business in Wyoming compared to Delaware. Annual Reports cost $62 ($60 filing fee with a $2 convenience fee if filed online). In order to enjoy the advantages of operating a business in Wyoming, one option would be to dissolve your current LLC or corporation and start a new one in Wyoming, but you would lose your original date of organization and would need new business documents, e.g., new operating agreements, etc. However, with domestication, your company maintains its date of organization, credit ratings, and governing documents all remain intact. The only thing that changes is your business’s address.
Corporations pay one of two fees. If your Corporation has been paying more than the minimum annual franchise tax, you must file a Certificate of Dissolution, pay a $204 filing fee, and pay all taxes.
If your Corporation meets all of the following requirements, you can file the Short Form and pay only the $10 filing fee:
For more on forming an LLC in Delaware, see our guide, including requirements, articles of organization, registered agent, operating agreement, and annual report. Explore benefits, taxes, fees, anonymous LLC, single-member LLC, and corporation taxes. Visit our homepage and blog for more.