Wyoming vs Delaware: which state to choose for your LLC in 2026

Choosing the state of formation is one of the first decisions to make when opening a US LLC. Wyoming and Delaware are the two most popular states.

Delaware: the state of corporations

Delaware is famous for the Court of Chancery specialized in corporate law. However, for foreign LLC owners, it has a significant disadvantage: the franchise tax of $300/year.

Wyoming: the state for LLCs

Wyoming has become the preferred state for LLCs owned by non-Americans. Zero annual franchise tax, maximum privacy, low maintenance costs ($60/year for the Annual Report).

Direct comparison

Franchise Tax: Wyoming $0, Delaware $300/year. Privacy: Wyoming high, Delaware medium. Annual Report: Wyoming $60, Delaware $300. For 95% of European founders, Wyoming is the optimal choice.