Wyoming vs Delaware: Best State for LLC in 2026

If you are an international founder looking to start a business in the United States, you've likely narrowed your state choices down to Wyoming and Delaware. Both states are tax-friendly for non-residents, but they serve different business goals.

Wyoming: Best for Bootstrapped Founders

Wyoming is widely considered the best choice for small business owners, freelancers, and e-commerce stores. Why? Wyoming's state maintenance costs are very low. The state fee is $102 to file, and the annual report fee is just $60. There is no state corporate income tax, and Wyoming offers top-tier asset protection and privacy.

Delaware: Best for VC-Backed Startups

Delaware is the corporate capital of the United States. More than 60% of Fortune 550 companies are registered there. However, it is more expensive. Delaware has a $90 filing fee, but charges a minimum of $300 per year in franchise tax. Additionally, if you plan to raise venture capital, issue stock options, or eventually go public, investors will expect a Delaware C-Corporation or Delaware LLC.

Summary Recommendation

If you are self-funded and operating an agency, consulting firm, or Shopify store, go with Wyoming to save money. If you are building a tech startup and plan to raise funds from US venture capitalists, go with Delaware.