The Real Cost of Forming an LLC in Delaware vs. Wyoming (2026 Guide + Fee Calculator)
The Real Cost of Forming an LLC in Delaware vs. Wyoming (2026 Guide + Fee Calculator)
The Startup Dilemma: Every guru tells you to incorporate in Delaware. But for 90% of small business owners, that advice costs thousands in unnecessary taxes. This guide does the math for you.
If you are launching a startup, an e-commerce store, or a consulting firm in 2026, where you register matters. The battle is usually between two titans: Delaware (the corporate king) and Wyoming (the privacy haven).
Most “zero cost” formation services hide the long-term fees. They don’t tell you about the $300 annual tax or the cost of a Registered Agent.
At CostsAZ.com, we look at the 5-year horizon. We will compare the initial filing fees against the recurring maintenance costs so you can choose the state that fits your wallet.
(Need a business address? Check our breakdown of Virtual Office Costs (Article #13)).
1. Which State Fits Your Business? (Decision Matrix)
Don’t just copy what Facebook did. Your business model dictates the best state. Click to see our recommendation:
👇 Quick Check: What is your goal?
2. The 5-Year Cost Breakdown
This table exposes why Delaware is expensive. Look at the “Annual Franchise Tax” row.
| Fee Type | Delaware | Wyoming | Winner |
|---|---|---|---|
| Initial Filing Fee | $90 – $110 | $100 – $102 | Tie |
| Annual Franchise Tax | $300 (Minimum) | $60 (Minimum) | Wyoming |
| State Income Tax | 0% (for non-residents) | 0% (Always) | Tie |
| Total Cost (5 Years) | ~$1,590 + Agent | ~$400 + Agent | Wyoming saves $1,190 |
3. Deep Dive: Delaware (The Corporate Standard)
Why do 65% of Fortune 500 companies incorporate here if it costs more?
- Chancery Court: Delaware has a special court just for business disputes. No juries, just expert judges. This makes legal outcomes predictable.
- Investor Preference: VCs demand Delaware C-Corps. If you show them a Wyoming LLC, they will likely make you convert it to Delaware anyway (costing you more legal fees).
4. Deep Dive: Wyoming (The Privacy Haven)
Wyoming invented the LLC in 1977. It is designed for small businesses and asset protection.
🔒 The “Anonymous LLC” Feature:
Wyoming does not require you to list the “Members” or “Managers” on the public state database. You only list your Registered Agent. This keeps your name off the internet, protecting you from frivolous lawsuits and spam.
6. LLC Cost Estimator (2026)
Select your state and add-ons to see the real startup price.
🇺🇸 LLC Startup Estimator
Calculate your state filing & maintenance fees
7. Expert FAQ
Can I open a US LLC as a non-resident?
Yes, 100%. You do not need a visa, green card, or US citizenship to own a US company.
Do I pay taxes in Delaware?
Generally, no corporate income tax if you don’t do business physically inside Delaware. You only pay the Franchise Tax.
Can I switch states later?
Yes, via a process called “Domestication,” but it is expensive and requires legal paperwork. It is better to choose correctly from day one.
Related Topics
delaware llc franchise tax calculator 2026, wyoming llc privacy benefits, best state for online business llc, foreign qualification cost, registered agent fee comparison northwest vs zenbusiness.
