Short answer
Wyoming is usually cheaper for a simple LLC. Delaware can make sense for founders who specifically want Delaware’s legal ecosystem, investor familiarity, or a business structure that may later involve more formal financing.
If you operate in another state, neither Delaware nor Wyoming automatically replaces your home-state obligations. You may still need to register as a foreign LLC where the business actually operates.
| Factor | Delaware LLC | Wyoming LLC |
|---|---|---|
| Formation fee estimate | $110 in this calculator model | $100 in this calculator model |
| Recurring state cost | $300 annual LLC tax | Annual license tax, commonly a $60 minimum for many small LLCs |
| Registered agent | Required if you do not maintain a Delaware registered office | Required if you do not maintain a Wyoming registered office |
| Best for | Legal predictability, investor familiarity, more formal business structures | Lower recurring state cost, simple holding or small business use cases |
Delaware LLC cost profile
Delaware is famous for business law and the Court of Chancery, but an LLC is not automatically cheaper there. The state’s annual LLC tax is a meaningful recurring cost for a small business.
Delaware’s official Division of Corporations explains annual taxes for alternative entities, including LLCs. Always verify the latest state amount before filing.
Wyoming LLC cost profile
Wyoming is often positioned as a lower-cost alternative for LLCs. Its annual report license tax is commonly based on assets located and employed in Wyoming, with a minimum payment for many small LLCs.
That can make Wyoming attractive for some founders, especially if they need a nonresident-friendly LLC state and understand their home-state compliance obligations.
If your business is actually run from California, Texas, Florida, New York, or another state, forming in Delaware or Wyoming may not avoid local registration or tax rules. You may pay for the “famous” state plus your real operating state.
When Delaware may be worth it
- You expect investors, attorneys, or partners to prefer Delaware entities.
- You want a state with a long-standing reputation for business law.
- You are building a more formal company structure and the extra annual cost is acceptable.
When Wyoming may be better
- You want to keep recurring state costs lower.
- You are forming a simple LLC and do not need Delaware’s legal brand.
- You want a state often used by nonresident or privacy-conscious LLC owners.
Official sources to check
Before filing, verify the current rules with the state. Useful starting points include the Delaware Division of Corporations annual tax instructions, the Delaware registered agent page, the Wyoming Secretary of State business center, and Wyoming's Business Division filing fee schedule.