Wyoming vs. Delaware LLC Formation — 2026 Cost, Protection & Requirements Comparison

1. Compare formation costs: WY $100 vs. DE $90 Delaware has a slightly lower formation fee ($90 vs. $100), but the $10 difference is negligible. Both states offer anonymous formation — neither requires member names or addresses on the public filing. Delaware offers more granular expedited processing tiers (up to 1-hour turnaround); Wyoming offers standard expedited processing. For most formations, the formation-fee difference is not a deciding factor.
2. Compare annual obligations: WY $60/yr minimum vs. DE $300/yr Wyoming's Annual Report is $60 minimum (or $0.0002 × WY assets) due on the anniversary month. Delaware charges a flat $300/yr Annual LLC Tax due June 1 — regardless of revenue. Over 3 years: Wyoming ~$280 ($100 + 3×$60) vs. Delaware ~$990 ($90 + 3×$300). Wyoming costs less than one-third of Delaware on an ongoing basis. For asset-protection and holding LLCs that may hold the structure for many years, the $240/yr savings compounds significantly.
3. Compare charging-order protection: WY statutory exclusive remedy vs. DE case-law-dependent Wyoming's charging-order statute (Wyo. Stat. § 17-29-503) expressly declares that a charging order is the exclusive remedy for a creditor of a member — a creditor cannot foreclose on the membership interest, force a liquidation, or obtain management rights. Delaware's LLC Act provides charging-order protection (6 Del. C. § 18-703), but Delaware courts have not declared it universally exclusive and have, in some circumstances, permitted foreclosure against single-member LLCs. For maximum asset-protection against creditors, Wyoming's statute is generally considered the stronger framework.
4. Compare court systems: DE Court of Chancery vs. WY Supreme Court jurisprudence Delaware's Court of Chancery is a dedicated business court with specialist judges (chancellors), no juries, and over a century of LLC and corporate case law. It is the gold standard for investor-facing structures, M&A, and complex governance disputes. Wyoming's Supreme Court has developed a strong body of LLC jurisprudence, particularly on charging-order and member-creditor issues, but lacks the institutional depth and investor familiarity of Delaware. For venture-backed startups, Delaware remains the default; for asset-protection and closely-held structures, Wyoming's statutory protections often matter more than court depth.
5. Evaluate anonymity and privacy Both Wyoming and Delaware permit formation without member names on the public record. Wyoming's Articles of Organization require only the LLC name, RA information, and organizer signature — no members or managers disclosed. Delaware's Certificate of Formation similarly requires only the LLC name and RA. Wyoming additionally allows nominee organizers and does not require member disclosure in annual filings. For pure anonymity use cases, Wyoming and Delaware are comparable; Wyoming is slightly preferred for its consistent statutory framework around anonymous LLCs.
6. Consider registered agent requirements Both states require a registered agent with a physical in-state address. Wyoming residents may self-serve as RA; Delaware requires a DE-address RA, meaning out-of-state owners must use a commercial service ($50–$150/yr). For owners outside both states, commercial RA services apply in both — Wyoming's RA market typically runs $50–$100/yr vs. Delaware's $50–$150/yr, a marginal difference.
7. Factor in foreign qualification if operating outside the formation state Most Wyoming and Delaware formation-only LLCs operate primarily in another state, triggering foreign qualification requirements there. Both WY and DE are used as formation-only states for this reason. Wyoming's lower $60/yr Annual Report makes the dual-state carrying cost significantly lower than Delaware's $300/yr Annual LLC Tax when combined with the operating state's annual obligation.
8. Choose your state and file Wyoming: file at sos.wyo.gov (Articles of Organization, $100). Delaware: file at icis.corp.delaware.gov (Certificate of Formation, $90). After formation, obtain an EIN at irs.gov/ein, draft an operating agreement, and open a business bank account. Wyoming wins on ongoing cost and asset-protection statute. Delaware wins on investor familiarity, Court of Chancery depth, and granular expedited processing. Choose Wyoming for asset-protection holding structures and privacy-first formations; choose Delaware for venture-backed startups and investor-facing entities.

Wyoming Limited Liability Company Act, Wyo. Stat. § 17-29-101 et seq.; Wyoming charging-order: Wyo. Stat. § 17-29-503; Delaware Limited Liability Company Act, 6 Del. C. § 18-101 et seq.; Delaware charging-order: 6 Del. C. § 18-703; Delaware Annual LLC Tax: 30 Del. C. § 502(b); IRS guidance on single-member LLC disregarded entity treatment.

FAQ

Texas vs. Florida LLC — common questions