One of the first questions every non-resident founder asks us is “which state?” We only form companies in Wyoming and Delaware — not because they’re trendy, but because between them they cover almost every situation a non-resident founder runs into. Here’s how we help you choose.
Why just two states?
Any of the 50 states can technically host your LLC, but most non-resident founders don’t need the other 48. Wyoming and Delaware between them handle the two goals we hear most often: keep costs and paperwork low (Wyoming), or look and operate like a company venture investors already recognize (Delaware). Picking one of these two also keeps your registered agent, franchise tax, and annual filing rules simple and predictable — which matters a lot when you’re managing all of it from another country.
The side-by-side comparison
State fees change from time to time. These are current figures we confirm again at the time we file — you’ll always see the exact number before we submit anything.
| Factor | Wyoming | Delaware |
|---|---|---|
| State filing fee | $100 (~$102 online) | $110 |
| Ongoing annual fee | ~$62 annual report | LLC franchise tax ~$300/yr; Corp franchise tax from ~$450/yr |
| Owner names public? | No — Wyoming doesn’t list members on the public formation record | No — Delaware doesn’t require member/shareholder names either |
| State income tax | None | None on income earned outside Delaware |
| Best known for | Low, flat, predictable costs | Investor-familiar corporate law (Delaware General Corporation Law) |
| Best fit | Solo founders, e-commerce, service businesses, agencies | Companies planning to raise venture capital or issue multiple share classes |
When Wyoming is the better call
Wyoming is our default recommendation for most non-resident founders, especially if you’re forming a single-member LLC to run a service business, e-commerce store, SaaS product, or agency without outside investors. A few reasons it tends to win:
- The flat, low annual report fee (~$62) is easy to budget for year after year, with no surprise franchise-tax formulas.
- Wyoming has some of the strongest member privacy protections in the country — helpful if you’d rather your ownership not be part of the public record.
- There’s no state income tax, and Wyoming’s LLC statute is straightforward, so your annual compliance stays simple.
If your plan is “form a company, open a US bank account, get paid by US clients or platforms like Stripe,” Wyoming almost always gets you there for less money and less ongoing admin.
When Delaware makes more sense
Delaware earns its reputation for a reason: it’s the state most US investors, accelerators, and legal counsel already know inside and out. Consider Delaware if:
- You’re planning to raise venture capital — most US VCs default to requiring a Delaware C-Corp before they’ll invest.
- You expect to issue multiple classes of stock, set up an employee option pool, or eventually convert from an LLC to a C-Corp.
- Your lawyers or investors have specifically asked for Delaware, since its courts (the Court of Chancery) have decades of business-specific case law that gives everyone predictability.
The trade-off is a higher and less predictable annual cost — Delaware LLC franchise tax runs about $300/year, and a Delaware corporation’s franchise tax starts around $450/year and can climb depending on how you calculate it (authorized shares vs. assumed par value).
What this looks like once we file
Either way, the mechanics we handle for you are the same:
- We prepare and file your Articles of Organization (LLC) or Incorporation (C-Corp) with the state.
- We act as your registered agent, so you always have a physical in-state address for legal notices.
- We request your EIN from the IRS on your behalf.
- We prepare your operating agreement (LLC) and run a name availability check before we file anything.
- Formation with the state typically takes 5–7 business days; your EIN usually follows 2–4 weeks later, for an overall timeline of about 4 weeks from start to a fully set-up company.
Neither state charges its own income tax on your company — but you’ll still have federal tax obligations (like Form 5472) no matter which state you pick. That part doesn’t change.
Still not sure?
Most founders can decide with one question: are you planning to raise institutional funding in the next year or two? If yes, Delaware. If you’re bootstrapping, running a lean service business, or just want the lowest-friction way to operate in the US, Wyoming is usually the better fit — and you can always convert later if your plans change.
Either way, we take care of the paperwork on both ends. Head over to Company Formation to see the plans and pricing, or reach out and we’ll help you pick the right state for where your business is headed.
