Ohio vs. Wyoming LLC Formation — 2026 Cost, Privacy & Requirements Comparison

1. Compare formation costs: OH $99 vs. WY $100 — nearly identical Ohio and Wyoming have the most similar formation fees in any LLC comparison: $99 (Ohio) vs. $100 (Wyoming) — a $1 difference. This comparison is uniquely about what happens after formation. Ohio's zero annual fee is a decisive long-term advantage, while Wyoming's anonymity and charging-order protections are advantages Ohio cannot match. Choose based on your operational and privacy needs, not formation cost.
2. Compare annual obligations: OH $0/yr vs. WY $60/yr — Ohio has no annual report Ohio is one of a handful of states with NO annual report requirement. Ohio LLCs pay $0/yr in state administrative fees after formation. Wyoming requires an Annual Report ($60 minimum) due on the anniversary month. Over 3 years: Ohio ~$99 total vs. Wyoming ~$280 ($100 + 3×$60). Over 10 years: Ohio ~$99 vs. Wyoming ~$700 ($100 + 10×$60). For cost-focused founders with no privacy or asset-protection requirements, Ohio's combination of low formation and zero annual cost is exceptionally compelling.
3. Understand Ohio's Commercial Activity Tax (CAT) Ohio imposes a Commercial Activity Tax (CAT) on gross receipts above $150,000 at a rate of 0.26%. For LLCs below the $150,000 threshold, the effective CAT is $0 with no CAT filing required. Above that threshold, Ohio requires CAT registration and quarterly/annual reporting. The CAT is distinct from income tax — it applies to gross receipts, not net income. For service businesses with margins above 0.26%, the CAT is less burdensome than it first appears. Wyoming has no equivalent gross receipts tax.
4. Compare income tax: OH 3.5% flat (above threshold) vs. WY 0% Ohio imposes a flat 3.5% individual income tax on income above $26,050. Wyoming has no state income tax. However, forming a Wyoming LLC does NOT reduce Ohio income tax for Ohio residents — Ohio taxes residents on worldwide income regardless of where the LLC is formed. A Columbus, Ohio founder who forms a Wyoming LLC still owes Ohio's 3.5% income tax on pass-through earnings. To benefit from Wyoming's zero income tax, a real change of residency to Wyoming is required.
5. Evaluate privacy and anonymity: WY anonymous, OH public record Wyoming's Articles of Organization require only the LLC name, RA information, and organizer signature — member names are not on the public record. Ohio's public SOS filing lists member and manager names. For Ohio founders who want ownership privacy — investment holding structures, passive income businesses, privacy-sensitive ventures — Wyoming provides anonymous formation that Ohio cannot. If privacy is a non-issue for your use case, Ohio's lower cost wins decisively.
6. Understand Wyoming's charging-order and asset-protection advantage Wyoming's charging-order statute (Wyo. Stat. § 17-29-503) expressly declares a charging order the exclusive creditor remedy against an LLC interest — a judgment creditor cannot foreclose on the membership interest or force a liquidation. Ohio's creditor statutes do not provide an equivalent exclusive-remedy declaration. For Ohio business owners with personal liability exposure (professionals, contractors, real estate investors), a Wyoming holding LLC can provide a meaningful additional layer of asset protection that Ohio-formed LLCs do not offer.
7. Factor in foreign qualification if an OH operator forms in WY Ohio-based business owners who form in Wyoming and conduct regular business in Ohio may need to foreign-qualify in Ohio. This adds Ohio's foreign LLC registration fee and any ongoing Ohio obligations on top of Wyoming's $60/yr Annual Report. For a pure holding LLC that holds assets (not an operating entity conducting transactions in Ohio), foreign qualification may not be required — consult an Ohio attorney. For operating businesses, the dual-state overhead erodes Wyoming's cost advantage for most founders.
8. Choose your state: Columbus contractor → Ohio; privacy holding structure → Wyoming Ohio: file at ohiosos.gov (Articles of Organization, $99). Wyoming: file at wyobiz.wyo.gov (Articles of Organization, $100). Ohio wins for virtually every Ohio-based operating business — $99 once, $0 forever, no annual paperwork. Wyoming wins for founders who specifically need anonymity, stronger charging-order protection, or a holding structure for assets where privacy matters. If you are a Columbus-based contractor, freelancer, or small-business owner with no unusual privacy or asset-protection needs, Ohio's zero ongoing cost is the obvious choice.

Ohio Revised Code Ch. 1706 (Ohio LLC Act); Ohio CAT: Ohio Revised Code Ch. 5751; Wyoming Limited Liability Company Act, Wyo. Stat. § 17-29-101 et seq.; Wyoming charging-order: Wyo. Stat. § 17-29-503; IRS guidance on single-member LLC disregarded entity treatment.

FAQ

Ohio vs. Wyoming LLC — common questions