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Comparing LLCs in Wyoming and Delaware

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Mark Pierce

By Mark Pierce, Esq.


Wyoming Corporations vs Delaware Corporations

The main difference between Wyoming corporations and Delaware corporations is the cost. The taxes in Delaware, especially franchise taxes, are significantly higher than in Wyoming. Both offer essentially the same asset protection.

Though that is the short answer, both Wyoming and Delaware are among the most popular and advantageous choices for incorporation. If you are interested in forming a corporation, there are a few key differences that can help you decide which is best for you and your corporation.

Regardless of what you choose we can be your registered agent in Delaware or Wyoming, we have physical offices in both, and can open a free online bank account too.

Delaware Corporations

Service: Delaware Corporation Formation
Cost: $309
Turnaround: 24 Hours
What’s Included: First Year Registered Agent and Business Address, Bylaws, Free Bank Account

Fortune 500 companies have long been drawn to Delaware thanks to its well-developed body of case law for corporations, reaching back over a hundred years and covering a wide breadth of matters regarding shareholders, management, mergers and acquisitions, and more. Delaware laws also have a tendency of favoring management in shareholder disputes. Additionally, one of Delaware’s biggest draws when it comes to incorporation is its Court of Chancery. Unique to Delaware, this court focuses solely on business law and the matters are decided by judges well-versed in business issues, rather than by juries.

However, even taking all of this into consideration, Delaware may not necessarily be the best place to incorporate your business. Choosing where you incorporate may depend more on the structure of your business and your long-term goals.

For example, if your business goals center around taking your company public and growing into a Fortune 500, then Delaware may be a suitable choice for you. However, if your goals are not quite this lofty, then you should be mindful of Delaware’s corporate income tax and franchise tax, along with several disclosure and reporting requirements. If these things are important to you or may have an adverse effect on your company, then you should consider incorporating in Wyoming, which tends to be more appealing for small businesses and privately-owned companies.

Wyoming Corporations

Service: Wyoming Corporation Formation
Cost: $199
Turnaround: 24 Hours
What’s Included: First Year Registered Agent and Business Address, Bylaws, Free Bank Account

Wyoming is one of only a few states known for being a tax-haven to corporations. While Delaware does not tax corporate shares, Wyoming does not tax corporate shares, along with offering no state corporate income tax and no franchise tax. Similar to Delaware, Wyoming allows the formation of one-person corporations and does not have requirements for listing members or revealing stockholder information to the state. Wyoming, however, goes further in privacy matters by not collecting any corporate income tax information to be shared with the IRS.

There are a few additional benefits that make Wyoming attractive when it comes to incorporation. Compared to Delaware and many other states, Wyoming offers a very minimal annual fee. Additionally, Wyoming offers the option of continuance, which allows the moving of an existing corporation into the state of Wyoming, plus we have a Close Corporation for those wanting fewer formalities.

Incorporation Comparison: WY vs DE

As was discussed above, both Delaware and Wyoming offer several benefits to those who have incorporated in their respective states. Generally, Delaware tends to attract larger corporations that can benefit from its well-developed legal system and Court of Chancery. Wyoming, on the other hand, offers attractive benefits to smaller, privately-held companies, such as increased privacy and fewer applicable taxes. Weighing these offerings against the needs and long-term goals of your business will help you determine which state offers the best future for your company.

If the Wyoming benefits are attractive to the needs of your business, you might consider enlisting the help of our formation service for Wyoming incorporation assistance. Additionally, we can serve as your incorporator for articles of incorporation filing. In some cases, we can also serve as the registered agent for your corporation. You may choose this option if you have privacy concerns, as the articles of incorporation are a public document.

Frequently Asked Questions

Is Wyoming better than Delaware?

Wyoming is better for small companies due to reduced compliance and formation requirements, lower fees and a simpler tax structure. Delaware is better for Fortunte 500 companies.

Is Delaware or Wyoming better for LLC?

Wyoming is better than Delaware for forming an LLC. Delaware is made for Fortune 500 Corporations, not for small business owners who desire low fees and asset protection.

Is Wyoming a good state to incorporate?

Wyoming is a leading incorporation provider with low fees and no corporate income taxes. Delaware is generally only used by those raising venture capital or looking to go public.

Why you shouldn't incorporate in Delaware?

Delaware is excellent if you are a Fortune 500 company, otherwise you shouldn't incorporate in DE due to high fees, lack of privacy and generally complex operational requirements compared to Wyoming.