Wyoming vs Delaware LLC: Which State Is Better for Non Residents?
Starting an LLC registration in USA can feel confusing for non-residents. Wyoming vs Delaware LLC is one of the biggest decisions you’ll face, and choosing the wrong state could mean paying higher annual fees, dealing with extra compliance, or making future banking and tax matters more complicated than they need to be.
The good news is that both states are excellent options- but they serve different goals. In this Wyoming vs Delaware LLC comparison, you’ll learn the real costs, taxes, privacy benefits, maintenance requirements, and which state makes the most sense for non-residents before you register your company.
Wyoming vs Delaware LLC: Quick Overview
Wyoming is cheaper to maintain at just $60 per year compared to Delaware’s $300 annual franchise tax. It also offers strong privacy and is a great choice for non-residents, solopreneurs, online businesses, and freelancers who want to keep costs low while running a U.S. company.
Delaware costs more but is highly trusted by investors and venture capital firms, and its specialized Court of Chancery makes it a popular choice for startups seeking funding. If you’re starting a simple business and want to keep costs low, choose Wyoming. If you plan to raise investment in the future, choose Delaware. As your business grows, you can also hire a virtual assistant to handle administrative tasks, customer support, scheduling, and other day-to-day work.
Wyoming LLC: Costs, Benefits, Timeline and Requirements
Wyoming LLC Formation Cost and Processing Time
Wyoming is known for its fast and affordable LLC formation process. If you’re wondering how long does it take to register a Wyoming LLC, the answer depends on your filing method – but it’s one of the quickest states to get started.
| Item | Cost |
|---|---|
| Wyoming LLC Filing Fee | $100 |
| LLC Registration For Non Residents | $150 |
| Online Card Processing fee | 2.4% (minimum $1) |
If you file online through Wyoming’s WyoBiz portal, approval usually takes 1–3 business days. Mail filings generally take around 15 business days. And unlike Delaware, Wyoming does not offer any official expedited processing.
Wyoming LLC Owners: Minimum Requirements and Ownership Changes
A Wyoming LLC can be formed with just one owner, and there is no limit on the number of owners you can have. You can also add or remove owners at any time after the LLC is formed by updating your Operating Agreement.
Wyoming LLC Privacy Benefits
Whenever we speak with clients about forming a Wyoming LLC, one question comes up repeatedly: “Can you hide our name as a Wyoming LLC owner?”
Our answer is yes. One of the biggest advantages of registering an LLC in Wyoming is the strong level of privacy it provides to business owners. The state does not require LLC owners or managers to be listed in public formation documents.
When someone searches the Wyoming Secretary of State database, they generally see:
Company name
Formation date
Registered agent information
Your personal name is not displayed in public business records, making it more difficult for competitors, data brokers, and casual online searches to identify you as the owner.
When a professional service provider such as US Global Startup forms your company on your behalf, its name is listed as the organizer on the public filing documents. This means your name does not appear in the state’s public records, adding an additional layer of privacy.
However, there are some important limitations to understand:
Banks are still required to verify your identity when you open a business bank account.
The IRS receives your information through your EIN application and tax filings.
Courts can require disclosure of ownership information through legal orders or subpoenas.
Government agencies may access ownership details when legally required.
As of March 2025, U.S. citizens and domestic company owners are generally exempt from FinCEN Beneficial Ownership Information (BOI) reporting requirements.
Foreign nationals who own a Wyoming LLC may still be required to file a BOI report within 30 days of formation and provide personal identification details.
While Wyoming LLCs do not provide complete anonymity, they offer one of the strongest business privacy protections available in the United States. For entrepreneurs who value confidentiality, Wyoming remains one of the most attractive states for LLC formation.
What Is The Monthly Costs for Running a Wyoming LLC?
There is no monthly cost to run a Wyoming LLC if you’re operating as a simple LLC without employees.
Wyoming has no state income tax, no franchise tax, no gross receipts tax, and no monthly state filing obligations. Your only on going state cost is the annual report (covered below). You don’t pay anything month to month just to keep your company active in Wyoming.
Do Non-Residents Need Payroll If They Hire Employees in Wyoming?
If your Wyoming LLC hires employees in the United States, you must comply with payroll requirements even if you are a non-resident owner. One advantage of Wyoming is that it has no state income tax, so employers do not need to withhold Wyoming state income tax from employee paychecks.
If managing payroll sounds complicated, you can outsource it to professionals. US Global Startup offers affordable monthly payroll services to help non-resident business owners stay compliant with payroll taxes, employee reporting, and ongoing filing requirements.
State Unemployment Insurance (SUTA)
Wyoming requires employers to pay State Unemployment Insurance (SUTA). For 2025, the taxable wage base is $32,400 per employee per year. New employer tax rates generally range from 2.28% to 9.78%, depending on the industry.
Workers' Compensation Insurance
Most Wyoming employers must provide workers’ compensation coverage for their employees. Unlike many states, Wyoming requires coverage through its state-operated worker’s compensation program.
Federal Payroll Taxes
Federal payroll taxes still apply, including:
- Social Security Tax (6.2% employer share)
- Medicare Tax (1.45% employer share)
- FUTA (Federal Unemployment Tax)
New Hire Reporting
Employers must report newly hired employees to the Wyoming New Hire Reporting Center within 20 days of hiring.
Important for Non-Residents
Most non-resident LLC owners do not need to worry about payroll taxes unless they hire U.S.-based employees. If you operate alone without employees, these payroll requirements generally do not apply.
IRS Filing Requirements for Non-Resident Wyoming LLC Owners
If you own a Wyoming LLC as a non-U.S. resident, your IRS filing requirements depend on the number of owners in the company.
Single-Member LLC (Foreign/Non-U.S. owner)
A foreign-owned single-member LLC must file:
- Form 5472
- Pro Forma Form 1120
This form reports any money or transactions between the LLC and its foreign owner. It is required even if the LLC had no income, no sales, or no business activity during the year.
Deadline: April 15
Extension: Available until October 15 using Form 7004
Penalty for Non-Compliance: $25,000 per missed Form 5472
Multi-Member LLC (Foreign owners)
A foreign-owned multi-member LLC is generally treated as a partnership and must file:
- Form 1065
- Schedule K-1 for each member
- Schedule K-2 and K-3 (international reporting)
Deadline: March 15
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The most common mistake made by non-resident LLC owners is failing to file Form 5472. Even if your Wyoming LLC earns no revenue, the IRS can still impose a $25,000 penalty for missing this filing requirement.
Wyoming LLC Annual Report Requirements for Non-Residents
If you own a Wyoming LLC as a non-U.S. resident, you must file an Annual Report each year to keep your company active and in good standing.
Due Date For LLC Annual Report In Wyoming
The Annual Report is due on the first day of your LLC’s formation anniversary month every year.
Wyoming LLC Filing Fee
The filing fee is:
- $60 minimum per year, or
- $0.0002 per dollar of Wyoming-based assets, whichever is higher
Most non-U.S. owners pay only the minimum annual fee of $60 because their LLC usually does not own any property or assets in Wyoming.
What Happens If You Miss the Deadline?
If you fail to file the Annual Report:
- Your LLC may become delinquent
- The state may administratively dissolve your company
- Reinstatement fees can range from $100 to $350, depending on the circumstances
For most non-resident Wyoming LLC owners, the Annual Report and the annual fee are the primary state-level compliance requirements.
Wyoming LLC Total Formation Cost
To form a Wyoming LLC, the Wyoming Secretary of State charges a $100 state filing fee.
If you prefer a professional service for company registration in USA – Wyoming, US Global Startup charges $249, which includes:
- Wyoming LLC registration
- EIN (Employer Identification Number)
- Business bank account opening assistance
- 1 year of registered agent service
| Item | Cost |
|---|---|
| Wyoming State Filing Fee | $100 |
| US Global Startup Package | $249 |
This allows you to complete your Wyoming LLC formation without dealing with the paperwork, filings, and compliance requirements on your own.
Wyoming LLC Annual Maintenance Costs (US Global Startup Pricing)
| Item | Cost |
|---|---|
| Wyoming Annual Report Fee (State Fee) | Starting at $60/year |
| Registered Agent Renewal | $69/year |
| Annual Tax & Compliance Filings | $250/year |
Total Estimated First-Year Cost for a Wyoming LLC: $728
This estimate includes the state fee, professional fee, Wyoming Annual Report fee, registered agent renewal, Annual Report Filing, and Form 1120 + Form 5472 Filing. Individual IRS Tax Filing (Form 1040/1040NR) is not included because it is not required for everyone.
Delaware LLC: Costs, Benefits and Requirements
While Wyoming is known for lower costs and privacy, many startups choose Delaware because it is preferred by investors and venture capital firms. If you plan to raise funding in the future, you may also need a Certificate of Good Standing, which helps show investors that your company is active and compliant with state requirements.
Delaware LLC Formation Cost and Processing Time
If you’re wondering how long it takes to register a Delaware LLC, the answer is fairly simple.
Standard Delaware LLC processing usually takes 7 to 10 business days, although it can take longer around 2 to 3 weeks during busy periods.Â
Those who need to start immediately for any reason can register an LLC in Delaware because it offers expedited filing and can approve a company in as little as one hour. However, you should keep in mind that Delaware’s state filing fees are higher than Wyoming’s.
| Speed Tier | Additional fee | Availability |
|---|---|---|
| 24-Hour Service | +$50 | File before cutoff |
| Same-Day Service | +$100 | Submit before 2:00 PM ET |
| 2-Hour Service | +$500 | Submit before 1:00 PM ET |
| 1-Hour Service (Priority 1) | +$1,000 | Submit before 1:00 PM ET |
These fees are on top of Delaware’s base filing fee of $110 for the Certificate of Formation. So if you need a Delaware LLC in one hour, your state cost alone is $1,110.
Delaware LLC Privacy Benefits
Many people ask us this question: “Can you hide our name as a Delaware LLC owner?”
The answer is yes. Delaware is one of only four U.S. states that allows anonymous LLC formation, along with Wyoming, Nevada, and New Mexico. This means your name generally does not appear in the public formation records of the LLC.
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The state does not require member or manager names to appear on the Certificate of Formation.
Public records generally show:
- Company name
- Registered agent details
- Formation information
Owner information is not publicly displayed. Another advantage is that Delaware LLCs do not file annual reports, hence it reduces the chance of ownership information appearing in future state filings.
However, banks, the IRS, and courts can still access ownership information when legally required.
Monthly Costs for Running a Delaware LLC
Like Wyoming, there are no monthly costs to maintain a Delaware LLC if you have no employees and do not operate a physical business. However, if you hire employees or sell physical products, you may need payroll compliance and a sales tax permit.
Delaware LLC Tax Requirements for Non-Residents
State Income Tax
Most non-resident LLC owners operating outside Delaware do not pay Delaware state income tax on LLC profits.
Sales Tax
One major advantage of Delaware is that it has 0% state sales tax
gross receipts tax
Delaware charges a Gross Receipts Tax if you are doing businesses that physically operate in the state. The tax rate ranges from 0.096% to 1.92%, depending on the type of business. Most non-resident LLC owners operating outside Delaware do not have to pay this tax.
Do Non-Residents Need Payroll in Delaware?
If you are a non-resident and do not have employees in Delaware, then payroll setup is generally not needed.
However, if you hire employees and they are working in Delaware, Then you must:
- Withhold Delaware state income tax from employee wages (rates range from 2.2% to 6.6%).
- Pay Delaware State Unemployment Tax (SUTA) on the first $10,500 of each employee’s wages.
- Pay federal payroll taxes, including Social Security, Medicare, and FUTA.
- File required payroll tax reports with state and federal authorities.
For most non-resident LLC owners operating an online business through their own website or e-commerce platforms such as Amazon, Etsy, Shopify, or Walmart, payroll requirements generally do not apply as long as they do not have employees working in Delaware.
IRS Filings Required for Non-Resident Delaware LLC Owners
Single-Member LLC (Foreign-Owned)
A foreign-owned single-member Delaware LLC must file Form 5472 and Pro Forma Form 1120 by April 15 each year.Â
Multi-Member LLC (Foreign-Owned)
A foreign-owned multi-member Delaware LLC must file Form 1065 and provide Schedule K-1s to its members. Depending on the business activities, K-2 and K-3 may also be required. These filings are generally due by March 15 each year.Â
Delaware Annual Franchise Tax
All Delaware LLCs must pay an Annual Franchise Tax of $300, due by June 1 each year.
Penalties for Missing Delaware Filings
If Delaware LLCs failed to pay the $300 Annual Franchise Tax by June 1
- Late penalty: $200
- Interest: 1.5% per month
If the tax remains unpaid for several years, Delaware may cancel your LLC. To restore it, you will need to clear all outstanding taxes, penalties, interest, and pay reinstatement fees by doing reinstatement filing.
For IRS filings, the penalties can be even more severe:
- Late Form 5472: $25,000 penalty per form.
- Late Form 1065: $235 per partner, per month, for up to 12 months.
- Late Form 1040: 5% of unpaid tax per month, up to 25%.
Because these penalties can be costly, non-resident LLC owners should make sure all state and federal tax filings are completed on time each year.
Delaware LLC Total Formation Cost
The cost to form a Delaware LLC is $110 for the state filing fee plus our $249 professional fee. Our fee includes Delaware LLC registration, EIN application, business bank account assistance, one year of registered agent service, and email scans of any mail received at your company address. Expedited filing is available for an additional fee depending on the processing speed selected.
Delaware LLC Annual Maintenance Costs (US Global Startup Pricing)
After your Delaware LLC is formed, there are a few ongoing costs to keep it compliant and in good standing.
| Item | Cost |
|---|---|
| Delaware Annual Franchise Tax (State Fee) | $300/year |
| Registered Agent Renewal | $69/year |
| Form 5472 + Pro Forma Form 1120 Filing | $250/year |
Estimated Total 1st year Annual Cost for Delaware LLC is $978
This estimate includes the state filing fee, professional fee, Delaware Franchise Tax, registered agent renewal, mail scanning and forwarding to your email for documents received at your company address, and Form 5472 with Pro Forma Form 1120 filing.
It does not include expedited filing fees or Form 1040/1040NR filing, as these are not required for every LLC owner.
Wyoming vs Delaware LLC Annual Costs for Non-Residents
As you can see, Delaware costs approximately $250 more per year than Wyoming. The main reason is Delaware’s $300 Annual Franchise Tax, while Wyoming’s annual state fee starts at just $60 per year.
Note: The figures above represent first-year costs. Since the state filing fee and formation service fee are one-time expenses, they do not apply in subsequent years. From the second year onward, the estimated annual maintenance cost starts at $379 for a Wyoming LLC and $619 for a Delaware LLC.
Wyoming vs Delaware LLC for Non-Residents
When non-residents compare Delaware vs Wyoming LLC, Wyoming is usually the most preferred choice.
Reasons include:
- Lower annual costs
- No franchise tax
- Faster formation
- Strong privacy protection
- Simpler compliance requirements
Many international founders use Wyoming LLCs for:
- Freelancing
- Consulting
- Digital marketing agencies
- E-commerce businesses
- Virtual assistant services
- Online service businesses
Wyoming vs Delaware LLC: Which Should You Choose?
Choose Wyoming LLC if:
- You want lower annual costs
- Privacy is important
- You're a freelancer, consultant, agency owner, or e-commerce seller
Choose Delaware LLC if:
- You plan to raise venture capital
- You expect future investors
- You may convert to a corporation later
- You want access to Delaware's Court of Chancery
Final Verdict: Wyoming or Delaware LLC For Non Residents?
For most non-residents running an online business or consultancy, Wyoming is the smarter choice. Lower fees, no franchise tax, strong privacy, and simple annual compliance keep your costs down while staying fully legal.
Only consider Delaware if you’re actively raising investment or talking to institutional investors – that’s where it earns its reputation.
Ready to get started? Whether you pick Wyoming or Delaware, the US Global Startup team handles everything – filing, EIN, bank account, and registered agent — for just $249 plus state fees.
Frequently Asked Questions
Common question about Wyoming LLC vs Delaware LLC for non residents.
Can non residents open a U.S. bank account with a Wyoming or Delaware LLC?
Yes, you can. Most U.S. banks allow LLC owners - including non-residents - to open a business bank account with either a Wyoming or Delaware LLC. You'll typically need your LLC formation documents, EIN, and a valid passport. Some banks like Mercury, Relay, and Wise work fully online, so you don't need to physically visit a branch. Delaware and Wyoming are both widely accepted by U.S. banks, so the state you choose won't create any issues on that front.
Is Wyoming LLC cheaper than Delaware LLC?
Yes, Wyoming LLCs are generally cheaper to form and maintain than Delaware LLCs. Wyoming requires a minimum annual fee of $60, while Delaware charges a $300 annual franchise tax. For freelancers, online businesses, and most non-resident founders, Wyoming is often the more cost-effective option.
Which offers better privacy: Wyoming or Delaware LLC?
Both Wyoming and Delaware offer strong privacy protections, but Wyoming is often considered the better choice for privacy-focused business owners. Neither state requires LLC owners to be listed in public formation documents, but Wyoming is especially popular among non-residents who want to keep their personal information off public records while maintaining low annual costs.
Do non-residents pay U.S. taxes on a Wyoming or Delaware LLC?
It depends on how the LLC operates and where the income is earned. Many non-resident LLC owners do not owe U.S. income tax if they do not have U.S.-sourced income or a U.S. trade or business. However, they may still have IRS filing requirements, such as Form 5472 for foreign-owned single-member LLCs. Because tax rules vary by situation, it's important to understand your filing obligations before operating the business.
How Much Does It Cost to Form an LLC in Wyoming vs Delaware?
The Wyoming state filing fee is $100, while the Delaware state filing fee is $110. If you use a formation service such as US Global Startup, the service fee is $249 plus the state fee. This includes LLC formation, EIN, one year of registered agent service, and U.S. business bank account assistance. That brings the total cost to $349 for a Wyoming LLC and $359 for a Delaware LLC.
Is Wyoming or Delaware Better for a Remote Business?
For most remote businesses, Wyoming is usually the better choice. It has lower annual costs, no franchise tax, strong privacy protections, and simple compliance requirements. This makes it a popular option for freelancers, consultants, agencies, eCommerce stores, and other online businesses. Delaware is generally a better fit for startups that plan to raise investment or bring in outside investors.
Why Are Tech Companies Choosing Delaware Over Wyoming?
Many tech companies choose Delaware because it is the preferred state for investors, venture capital firms, and startup founders. Delaware has a well-established business court system, clear corporate laws, and a strong reputation in the startup world. Some of the world's largest companies, including Google, Meta, and Tesla, are incorporated in Delaware. If a company plans to raise funding, issue shares, or attract investors in the future, Delaware is often the preferred choice.
What's Easier to Maintain: A Wyoming or Delaware LLC?
Based on US Global Startup's pricing, the estimated annual maintenance cost starts at $379 for a Wyoming LLC and $619 for a Delaware LLC. This includes the state annual fee or franchise tax, registered agent renewal, and Form 5472 + Pro Forma Form 1120 filing for foreign-owned single-member LLCs.
Will Choosing Wyoming or Delaware Affect My Business Loans?
In most cases, no. Lenders usually look at your business revenue, banking history, credit profile, and financial records rather than whether your LLC is registered in Wyoming or Delaware. Both states are widely recognized and accepted for doing business in the United States.
Can I Switch From Delaware to Wyoming Later Without Issues?
Yes. It is possible to move your LLC from Delaware to Wyoming later, but the process involves additional paperwork and state filing fees. Depending on your situation, you may need to domesticate the LLC, register it as a foreign LLC, or form a new Wyoming LLC and transfer the business.
