Wyoming LLC vs Delaware, Nevada & New MexicoWhich State is Best for You?
Side-by-side comparison of costs, taxes, privacy & asset protection. See why Wyoming wins for 95% of non-residents.
Quick Verdict: Wyoming Wins
Wyoming is the best choice for 95% of non-residents. It offers the perfect combination of low costs ($100 formation, $60 annual), no state income tax, anonymous ownership, and the strongest asset protection laws in the US.
Choose Delaware only if you're raising VC funding. Choose Nevadaonly if you want to overpay for the same benefits Wyoming offers cheaper. Avoid New Mexicodue to weak asset protection.
State-by-State Comparison
| Feature | Wyoming | Delaware | Nevada | New Mexico |
|---|---|---|---|---|
| Formation Fee | $100 | $300 | $425 | $50 |
| Annual Fee | $60-100 | $300 | $350 | $0 |
| State Income Tax | ❌ None | ✅ Yes | ❌ None | ✅ Yes |
| Franchise Tax | ❌ None | ✅ $300+ | ❌ None | ❌ None |
| Anonymous Ownership | ✅ Yes | ❌ No | ✅ Yes | ✅ Yes |
| Asset Protection | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐ |
| Charging Order Protection | Strongest | Standard | Standard | Weak |
| Business License | Not required | Not required | $200+ | Not required |
Detailed State Analysis
Wyoming
Best Overall
Pros
- No state income tax
- No franchise tax
- Anonymous ownership
- Lowest annual fees
Cons
- Not as 'prestigious' as Delaware for VCs
- Smaller business ecosystem
Delaware
Venture Capital
Pros
- Prestigious for investors
- Business-friendly courts
- Strong legal precedent
- VCs prefer Delaware
Cons
- High formation cost
- High annual fees
- Franchise tax ($300+)
- No privacy (names public)
- Must list members publicly
Nevada
Privacy (tied)
Pros
- No state income tax
- Anonymous ownership
- No info sharing with IRS
- No franchise tax
Cons
- Most expensive state
- High formation fee
- High annual fees
- Business license required ($200)
New Mexico
Lowest Cost
Pros
- Cheapest formation ($50)
- No annual report fee
- Anonymous ownership
Cons
- State income tax applies
- Weak asset protection
- No charging order protection
- Less business-friendly
Key Differences Explained
Taxes: Wyoming & Nevada Win
Wyoming and Nevada have NO state income tax. Delaware and New Mexico tax your business income. For high-revenue businesses, this alone can save thousands per year.
Privacy: Wyoming, Nevada & New Mexico Win
Wyoming, Nevada, and New Mexico allow anonymous LLC ownership. Delaware requires you to list members publicly. For privacy-conscious founders, avoid Delaware.
Asset Protection: Wyoming Wins
Wyoming has the strongest 'charging order' protection in the US. This means creditors can't seize your LLC assets - they can only get a lien on distributions. Delaware, Nevada, and especially New Mexico offer weaker protection.
Formation Speed: All Similar
All four states process LLC formations within 1-3 business days for online filings. Speed shouldn't be your deciding factor.
Frequently Asked Questions
Why do so many people choose Delaware if Wyoming is better?
Delaware has a reputation from the Fortune 500 era. Venture capitalists traditionally prefer Delaware because of its established corporate law. However, for small businesses, LLCs, and non-residents, Wyoming offers better value. Delaware is only worth it if you're seeking VC funding.
Is Nevada worth the extra cost?
No. Nevada charges $425 formation + $350 annual + $200 business license = $975 first year. Wyoming offers the same benefits (no tax, privacy) for $160-200. You're paying 5x more for the same thing.
What about New Mexico - isn't free annual fee good?
New Mexico has $0 annual fee and $50 formation, but they have state income tax and weak asset protection laws. If someone sues your LLC, your personal assets are at risk in New Mexico. Wyoming's charging order protection is worth the $60 annual fee.
Can I move my LLC from another state to Wyoming?
Yes, you can domesticate (move) your LLC to Wyoming. This involves filing paperwork in both states. Many people do this after learning about Wyoming's benefits. Contact us for assistance with LLC domestication.
Does my state of residence matter?
No. You can form a Wyoming LLC from any state or country. Many US residents form Wyoming LLCs for the asset protection and tax benefits. For non-residents, Wyoming is even more advantageous.
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