Delaware LLC vs Nevada LLC
Comparison of Delaware vs Nevada LLC; Nevada has higher annual fees but historical privacy advantage.
Definition
Delaware LLC: $110 formation, $300/year flat franchise tax. Nevada LLC: $75 formation, $200 annual list filing plus $200 business license equals $400/year. Nevada is more expensive than Delaware on annual basis. Nevada historical privacy advantage diminished after BOI reporting requirements.
Context
Nevada was historically favored for asset protection and privacy; Delaware now offers similar privacy with stronger case law.
Example
A solo founder compares Delaware ($300/year) vs Nevada ($400/year). Delaware wins on cost and case law.
Common pitfalls
- Nevada has higher annual fees than Delaware.
- Post-BOI, the privacy advantage is reduced.