Delaware LLC vs Wyoming LLC
Comparison of Delaware (premium, case-law-deep) vs Wyoming (cheap, less case law) LLC formation.
Definition
Delaware LLC: $110 formation, $300/year flat franchise tax, deep case law and Court of Chancery, $50-125 registered agent. Wyoming LLC: $100 formation, $60/year annual license tax, less case law but very strong charging-order protection, $50-100 registered agent. Wyoming is about $240/year cheaper.
Context
For deep counterparty due diligence (VC, M&A, enterprise B2B), Delaware case law makes it the default. For solo founders prioritizing low ongoing cost, Wyoming saves money.
Example
A solo bootstrap founder calculates 5-year cost: Delaware $1,500 plus vs Wyoming $300. Wyoming saves $1,200 over 5 years. Trade-off: less developed case law if dispute arises.
Common pitfalls
- Counterparty recognition risk with Wyoming.
- Wyoming offers stronger charging-order protection than Delaware in some scenarios.