Wyoming LLC vs Delaware LLC: 2026 Comparison
By {AUTHOR_OPS_NAME}, Director of Filing Operations | Published May 15, 2026 | Updated May 15, 2026
Wyoming and Delaware are two of the most popular states for LLC formation, but they serve different purposes. Delaware is the gold standard for VC-backed C-corporations. Wyoming is the strongest choice for LLCs focused on asset protection, cost efficiency, and privacy. This comparison covers filing fees, annual costs, franchise taxes, charging order protection, privacy, formation time, and the specific scenarios where each state makes the most sense. For a complete overview of Wyoming LLC benefits, see our Wyoming LLC guide.
Side-by-Side Comparison Table
| Factor | Wyoming | Delaware |
|---|---|---|
| Filing Fee | $100 | $90 |
| Annual Report | $60/year | $75+/year |
| Franchise Tax | None | $300/year |
| State Income Tax | None | None (pass-through) |
| Single-Member Charging Order | Explicit protection | Not explicitly extended |
| Member Privacy | Not listed on filings | Not listed on filings |
| LLC Statute Enacted | 1977 (first in US) | 1991 |
| Series LLC | Yes (§ 17-29-1101) | Yes |
| Court of Chancery | No | Yes (primarily C-corp) |
| 5-Year Total Cost | ~$1,137 | ~$2,090 |
Wyoming Advantages Over Delaware
Wyoming's most significant advantage is cost. Wyoming has no franchise tax, while Delaware imposes a $300 annual franchise tax on LLCs. Wyoming's annual report fee is $60 compared to Delaware's $75 or more. Over five years, Wyoming saves approximately $953. Wyoming also has the older and more refined LLC statute, enacted in 1977 — fourteen years before Delaware's 1991 LLC Act. Wyoming explicitly extends charging order protection to single-member LLCs under § 17-29-503(a), while Delaware's statute does not explicitly address single-member protection with the same clarity. For asset protection, holding company structures, real estate investments, and cost-conscious business owners, Wyoming provides stronger protections at lower cost. Wyoming also allows Domestic Asset Protection Trusts under § 4-10-510, enabling a two-layer protection strategy not available in Delaware. The privacy provisions are comparable between the two states — neither requires listing members on public filings — but Wyoming's overall value proposition for LLC formation is clearly stronger.
Delaware Advantages Over Wyoming
Delaware's advantages are concentrated in corporate governance, particularly for C-corporations. The Court of Chancery is a specialized business court with judges (not juries) who are experts in corporate law. This matters for complex corporate disputes involving board duties, shareholder rights, and M&A transactions. Venture capital firms prefer Delaware C-corps because of established case law, standardized deal terms, and the familiarity of investors and their attorneys with Delaware governance. Delaware also has Series LLC legislation, name recognition among corporate attorneys, and a deep body of case law interpreting its LLC Act. For startups on a VC track planning to incorporate as C-corps, Delaware remains the standard. However, these advantages are primarily relevant to C-corporations, not LLCs. For LLC formation — especially single-member LLCs, holding companies, and asset protection vehicles — Delaware's advantages do not offset its higher cost. Most LLC disputes never reach the Court of Chancery, and Wyoming's LLC statute provides equivalent or superior governance provisions for LLC-specific situations.
Who Should Choose Wyoming
Choose Wyoming if you are forming an LLC (not a C-corp), if cost efficiency matters (no franchise tax, $60 annual report), if asset protection is a priority (single-member charging order protection, DAPT availability), if you are building a holding company structure (charging order protection on the parent protects all subsidiaries), if you are a real estate investor (Series LLC under § 17-29-1101), or if you are an online business owner seeking privacy and minimal ongoing costs. Wyoming is also the better choice for professionals and consultants operating through single-member LLCs, international founders forming US entities, and anyone who wants the strongest LLC-specific statute in the country. The $497 formation cost through Cowboy State Filings includes everything: state filing, registered agent, operating agreement, EIN, and bank applications. Annual recurring cost is $160 per year. For most LLC use cases, Wyoming delivers equivalent or superior legal protection at roughly half the annual cost of Delaware.
Who Should Choose Delaware
Choose Delaware if you are forming a C-corporation (not an LLC) and plan to raise venture capital, if you need the Court of Chancery for corporate governance disputes, if your investors or attorneys specifically require Delaware formation, or if you are planning an IPO or institutional acquisition within 3-5 years. Delaware is also preferred when your company has complex multi-class stock structures, board governance provisions, or stockholder agreements that benefit from Delaware's extensive case law. For startups following the Y Combinator or institutional VC path, Delaware C-corp formation is essentially a requirement — not because Delaware law is objectively better, but because the ecosystem (attorneys, investors, deal terms) is built around Delaware governance. If you are unsure whether you need a Delaware C-corp or a Wyoming LLC, the deciding factor is usually whether you plan to raise institutional venture capital. If yes, choose Delaware C-corp. If no, choose Wyoming LLC. Very few businesses benefit from forming a Delaware LLC specifically — the higher cost and franchise tax make it an inferior choice compared to Wyoming for LLC structures.
5-Year Cost Comparison: Wyoming vs Delaware
| Year | Wyoming Cost | Delaware Cost | WY Savings |
|---|---|---|---|
| Year 1 (Formation) | $497 | $490 | $93 |
| Year 2 | $160 | $400 | $240 |
| Year 3 | $160 | $400 | $240 |
| Year 4 | $160 | $400 | $240 |
| Year 5 | $160 | $400 | $240 |
| 5-Year Total | $1,137 | $2,090 | $953 |
Wyoming saves $953 over five years compared to Delaware. The savings are driven entirely by Delaware's $300 annual franchise tax, which Wyoming does not impose. Both states assume $100 per year registered agent costs. For a detailed breakdown of Wyoming LLC costs, see our cost guide.
Frequently Asked Questions: Wyoming vs Delaware
Choose Wyoming. Save $953 over 5 years.
$497 total. No franchise tax. No state income tax. Stronger single-member protection. State filing, registered agent, operating agreement, EIN, and bank applications included.
Start your Wyoming LLC