Wyoming LLC vs Oregon LLC for Non-Residents (2026)

How does a Wyoming LLC compare to an Oregon LLC?

Wyoming is the clear choice for non-residents forming an LLC. Wyoming has zero state income tax, lower annual fees, private member information, and stronger asset protection. Oregon has one of the highest state income tax rates in the country at up to 9.9%, higher annual fees, and publicly listed member names.

Oregon's only structural advantage over Wyoming is the absence of a general sales tax. Oregon is one of five US states with no statewide sales tax. However, for non-residents forming LLCs for online businesses, payment processing, or international trade, the sales tax difference is irrelevant because sales tax applies to in-state transactions, not to the state of LLC formation.

Oregon compensates for its lack of sales tax with high income tax rates. Oregon's top marginal individual income tax rate of 9.9% is among the highest in the US, exceeded only by California. This creates a substantial tax burden for LLC owners with Oregon-sourced income. Wyoming's zero income tax eliminates this cost entirely.

Oregon also imposes a Corporate Activity Tax (CAT) of 0.57% on commercial activity over $1 million, adding another layer of taxation that Wyoming does not have. For non-residents, these combined tax obligations make Oregon one of the most expensive states for LLC formation and operation.

What are the formation costs for Wyoming vs Oregon LLCs?

Wyoming and Oregon both charge $100 for LLC formation. The formation cost is identical. The difference appears in annual fees, income tax, and compliance costs over time, where Wyoming is significantly cheaper.

Wyoming formation requires filing Articles of Organization online with the Wyoming Secretary of State for $100. Standard processing takes 1-3 business days. Expedited 24-hour processing costs $50 extra. Wyoming requires no publication or additional post-formation filings.

Oregon formation requires filing Articles of Organization with the Oregon Secretary of State for $100. Online filing is available and processing takes 2-5 business days. Oregon does not require newspaper publication but does require an annual report starting the year after formation.

Registered agent costs differ slightly. Wyoming registered agents charge $25-$100/year. Oregon registered agents charge $50-$150/year. Both states require a registered agent with a physical in-state address. Non-residents need a professional registered agent in whichever state they choose.

While formation costs are identical, the total cost of ownership diverges immediately in year one due to Oregon's income tax. A non-resident earning income through an Oregon LLC faces state income tax obligations that do not exist with a Wyoming LLC. For a complete cost breakdown, see Wyoming LLC cost breakdown.

What are the annual fees and ongoing costs?

Wyoming charges $60/year for the annual report while Oregon charges $100/year. Wyoming is $40/year cheaper on annual reporting. Combined with Wyoming's zero income tax versus Oregon's up to 9.9%, Wyoming is dramatically less expensive over time.

Wyoming's annual report is due on the first day of the anniversary month. Filing is completed online in minutes. The $60 flat fee applies regardless of LLC revenue or assets. Late filing incurs a $2/month penalty.

Oregon's annual report is due each year on the anniversary of the LLC's formation. The $100 fee is nearly double Wyoming's annual report cost. Oregon's annual report requires listing member names and addresses, which become part of the public record. Failure to file results in administrative dissolution.

The annual cost difference extends far beyond reporting fees when income tax is included. Wyoming charges $0 in state income tax. Oregon's graduated income tax rates start at 4.75% and reach 9.9% for income over $125,000. For a business earning $100,000/year, Oregon's state income tax is approximately $8,000-$9,000 annually. Over 5 years, this totals $40,000-$45,000 in Oregon income tax versus $0 in Wyoming.

How does state income tax compare between Wyoming and Oregon?

Wyoming has zero state income tax. Oregon has graduated income tax rates from 4.75% to 9.9%, placing it among the highest-tax states in the US alongside California. This is the single most important factor in choosing between these two states.

Wyoming has never had a state income tax. The state generates revenue from mineral extraction, property taxes, and sales tax. Non-residents who form a Wyoming LLC pay $0 in state income tax on LLC earnings regardless of amount. No state income tax return is required.

Oregon's graduated income tax brackets for 2026 are approximately: 4.75% on the first $3,750 of taxable income, 6.75% on income from $3,750 to $9,450, 8.75% on income from $9,450 to $125,000, and 9.9% on income over $125,000. These rates apply to individual income including LLC pass-through income. The top rate of 9.9% applies to most of the income for successful businesses.

For non-residents, Oregon's income tax applies to Oregon-sourced income. Forming an LLC in Oregon creates organizational nexus. Non-residents must file Oregon Form 40N (Non-Resident Individual Income Tax Return) for Oregon-sourced income. The calculation involves determining the portion of LLC income attributable to Oregon operations.

The financial impact is dramatic. A non-resident earning $75,000/year through an Oregon LLC pays approximately $6,000 in Oregon state income tax. The same business through a Wyoming LLC pays $0. Over 10 years, the difference is $60,000 in state income tax alone. This dwarfs any advantage Oregon offers through its lack of sales tax.

Oregon also imposes a minimum tax of $150 on LLCs treated as corporations, ensuring that even LLCs with no income pay something. Wyoming has no minimum tax, no franchise tax, and no business license tax. Wyoming's tax framework is the simplest and cheapest in the nation for LLC owners.

How does sales tax compare between Wyoming and Oregon?

Oregon has no general sales tax. Wyoming has a 4% state sales tax with local additions up to approximately 6%. Oregon's no-sales-tax status is its primary advantage, but it is offset by extremely high income tax rates and is irrelevant for most non-resident LLC owners.

Oregon is one of five US states with no statewide sales tax (along with Montana, Delaware, New Hampshire, and most of Alaska). Purchases made in Oregon are not subject to sales tax. This benefits Oregon residents and businesses making physical retail purchases in the state.

Wyoming's 4% state sales tax applies to retail sales of tangible personal property and certain services within Wyoming. Local jurisdictions add up to 2%, bringing total rates to approximately 5-6%. Wyoming's sales tax generates significant state revenue but does not apply to digital products, most services, or sales made outside Wyoming.

For non-US residents forming an LLC for online businesses, SaaS products, consulting, or international trade, neither state's sales tax is relevant. Sales tax is collected based on where the customer is located (destination-based taxation under economic nexus rules), not where the LLC is formed. A Wyoming LLC selling to California customers collects California sales tax. A Wyoming LLC selling to international customers collects no US state sales tax.

Oregon compensates for its lack of sales tax with high income tax rates. The state legislature has consistently maintained high income tax rates to offset the missing sales tax revenue. For LLC owners, the income tax burden far exceeds any sales tax savings. The net tax impact strongly favors Wyoming despite its 4% sales tax.

What is Oregon's Corporate Activity Tax?

Oregon's Corporate Activity Tax (CAT) is a 0.57% tax on commercial activity (gross receipts) exceeding $1 million per year. The CAT applies in addition to Oregon's income tax. Wyoming has no equivalent gross receipts tax.

The CAT was enacted in 2019 through House Bill 3427 and took effect January 1, 2020. The tax applies to all business entities with Oregon commercial activity exceeding $1 million, including LLCs. The base tax is $250 plus 0.57% of Oregon commercial activity over $1 million, with a subtraction of up to 35% of the greater of cost of goods sold or labor costs.

For non-residents with Oregon LLCs generating significant revenue, the CAT adds another layer of taxation on top of Oregon's already high income tax rates. A business with $2 million in Oregon commercial activity pays approximately $5,700 in CAT ($250 base plus 0.57% of $1 million), in addition to income tax of up to 9.9% on net income.

Wyoming has no gross receipts tax, no corporate activity tax, and no business license tax. The only business-related tax in Wyoming is the sales tax on retail transactions, which does not apply to services, digital products, or out-of-state sales. Wyoming's tax simplicity is a major advantage for business planning and cost predictability.

Most non-resident LLC owners will not exceed the $1 million threshold that triggers the CAT. However, the existence of the CAT demonstrates Oregon's willingness to layer multiple taxes on businesses. Wyoming's consistently business-friendly tax policy provides a more predictable environment for long-term business planning.

Which state provides better privacy protection for LLC owners?

Wyoming provides significantly better privacy protection than Oregon. Wyoming does not require member names on any public filing. Oregon requires member names on the annual report filed with the Oregon Secretary of State, making them publicly accessible.

Wyoming's Articles of Organization require only the LLC name, registered agent name and address, and organizer name and address. The organizer can be the registered agent or formation service. Member names never appear on any publicly searchable Wyoming state database. Wyoming's privacy framework has been a cornerstone of its LLC-friendly reputation since 1977.

Oregon's annual report requires listing the names and addresses of members (for member-managed LLCs) or managers (for manager-managed LLCs). This information is filed with the Oregon Secretary of State and becomes part of the public record. Anyone can search the Oregon business registry and find the names and addresses of LLC members or managers.

For non-US residents who value privacy, Oregon's public disclosure of member information is a significant disadvantage. Publicly listed ownership information can lead to unsolicited contact, competitive intelligence exposure, and personal security concerns. Wyoming's default privacy protection eliminates these risks without requiring additional structural complexity.

Oregon allows manager-managed LLCs where only manager names are listed. This provides partial privacy if the manager is a separate entity. However, this adds structural complexity and cost that Wyoming avoids by simply not requiring member disclosure on any filing.

How does asset protection compare between Wyoming and Oregon?

Wyoming provides the strongest LLC asset protection in the United States with explicit charging order protection for single-member and multi-member LLCs. Oregon provides charging order protection but has weaker protections and less established case law for single-member LLCs.

Wyoming Statute 17-29-503 makes the charging order the exclusive remedy for creditors of LLC members. A creditor cannot seize LLC assets, force distributions, or compel liquidation. This protection applies to both single-member and multi-member LLCs. Wyoming courts have upheld this protection consistently over decades.

Oregon's LLC Act (ORS Chapter 63) provides charging order protection as a remedy for judgment creditors. Oregon follows the Revised Uniform Limited Liability Company Act framework. While Oregon courts generally respect LLC protections, the case law specifically addressing single-member LLC charging order protection is less developed than Wyoming's.

Oregon courts have shown a willingness to look beyond the LLC structure in certain cases, particularly when the LLC is not properly maintained as a separate entity. Wyoming courts apply a higher standard for veil piercing and have a stronger institutional commitment to protecting LLC owners. Learn more at Wyoming LLC asset protection.

For non-residents who value asset protection, Wyoming's combination of explicit statutory protection, extensive case law, and pro-business judicial culture provides the highest level of confidence available in the United States.

How do non-residents form an LLC in each state?

Non-residents form a Wyoming LLC by filing Articles of Organization online with the Wyoming Secretary of State for $100. Non-residents form an Oregon LLC by filing Articles of Organization with the Oregon Secretary of State for $100. Both processes are fully remote but Oregon has more post-formation requirements.

Wyoming LLC Formation Steps

1. Choose a unique LLC name and verify availability on the Wyoming Secretary of State website
2. Appoint a Wyoming registered agent with a physical Wyoming address ($25-$100/year)
3. File Articles of Organization online ($100, processed in 1-3 business days)
4. Apply for an EIN from the IRS using Form SS-4 (free, 4-8 weeks by fax)
5. Create an operating agreement
6. Open a US bank account with Mercury Bank or Relay Bank

Oregon LLC Formation Steps

1. Choose a unique LLC name and verify availability on the Oregon Secretary of State website
2. Appoint an Oregon registered agent with a physical Oregon address ($50-$150/year)
3. File Articles of Organization online ($100, processed in 2-5 business days)
4. Register with the Oregon Department of Revenue for state income tax
5. Register for Corporate Activity Tax if expected commercial activity exceeds $750,000
6. Apply for an EIN from the IRS using Form SS-4 (free, 4-8 weeks by fax)
7. Create an operating agreement
8. Open a US bank account

Wyoming's formation process is simpler with fewer post-formation registrations. Oregon requires income tax registration and potentially CAT registration, adding compliance obligations from day one. Both states accept online filings from non-residents without citizenship or residency restrictions.

The processing timeline favors Wyoming: 1-3 business days versus Oregon's 2-5 business days. Wyoming also offers 24-hour and same-day expedited processing for additional fees. For non-residents who need to open bank accounts and start processing payments quickly, Wyoming's faster processing is an advantage.

Which state should non-residents choose?

Non-residents should choose Wyoming over Oregon for LLC formation. Wyoming is superior on every metric that matters to non-residents: zero income tax, lower annual fees, stronger privacy, stronger asset protection, and simpler compliance.

Oregon has no advantages over Wyoming for non-resident LLC owners. Oregon's only structural benefit (no sales tax) is irrelevant for non-residents running online or international businesses. Meanwhile, Oregon imposes one of the highest income tax rates in the US (up to 9.9%), charges more for annual reports ($100 vs $60), requires public disclosure of member names, and has weaker asset protection.

Choose Wyoming If:

• You are a non-US resident forming a US LLC for any business purpose
• You want zero state income tax on LLC income
• You want member names kept private from public records
• You want the strongest charging order protection available
• You want lower annual fees ($60/year vs $100/year)
• You want minimal compliance requirements
• You plan to open US bank accounts with Mercury or Relay
• You plan to use Stripe for US payment processing

Choose Oregon If:

• You have physical business operations in Oregon
• You have Oregon-based clients requiring local registration
• You own Oregon real estate through the LLC
• You plan to hire employees in Oregon

For non-residents who choose Wyoming, WyomingLLC.co provides complete formation services for a flat $297 fee. Read more about Wyoming LLC benefits and the best US state for LLC formation.