Is Delaware better for privacy?

Both are strong. Neither Wyoming nor Delaware lists LLC members in the public formation record. Privacy is not a meaningful differentiator between these two — it is a differentiator against states like Florida, which does list managers publicly.

Do investors actually care which state?

For venture rounds they care a great deal, but the relevant question is entity type rather than state — they want a Delaware C-Corporation, not a Delaware LLC. If you are forming an LLC now and may convert later, forming in Wyoming does not disadvantage that conversion.

Does Delaware give better legal protection?

Delaware's advantage is depth of case law, which means more predictable outcomes in complex disputes. For a small company whose realistic legal exposure is a customer dispute or an unpaid invoice, that depth rarely becomes relevant.

US company formation: choosing your entity and your state

Guide · 1 min read

Wyoming vs Delaware LLC: which is right for you

Delaware costs five times more per year and is worth it for a specific reason. If that reason does not apply to you, Wyoming wins.

The short answer

Wyoming costs $100 to file and a $60 minimum annual report. Delaware costs $90 to file and $300 annual franchise tax for LLCs. Wyoming suits self-funded companies with no US presence; Delaware earns its premium when you raise investment, because of its case law and investor familiarity.

	Wyoming	Delaware
Filing fee	$100	$90
Annual cost	$60 minimum annual report	$300 franchise tax, due 1 June
Members listed publicly	No	No
Investor recognition	Lower	The highest of any state
Case law depth	Modest	Deepest in the US
Best for	Self-funded companies with no US presence	Companies raising, or wanting instant recognition

Fees checked against state schedules in August 2026. Confirm with the Secretary of State before filing.

The honest summary

Over five years, Wyoming costs roughly $400 in state fees and Delaware roughly $1,590. That difference is trivial for a funded company and meaningful for a solo founder testing an idea.

What neither of them fixes

If you actually operate from a US state, forming in either of these does not avoid that state's obligations. You will register there as a foreign LLC and pay both — see best state for an LLC.

Frequently asked questions

Is Delaware better for privacy?: Both are strong. Neither Wyoming nor Delaware lists LLC members in the public formation record. Privacy is not a meaningful differentiator between these two — it is a differentiator against states like Florida, which does list managers publicly.
Do investors actually care which state?: For venture rounds they care a great deal, but the relevant question is entity type rather than state — they want a Delaware C-Corporation, not a Delaware LLC. If you are forming an LLC now and may convert later, forming in Wyoming does not disadvantage that conversion.
Does Delaware give better legal protection?: Delaware's advantage is depth of case law, which means more predictable outcomes in complex disputes. For a small company whose realistic legal exposure is a customer dispute or an unpaid invoice, that depth rarely becomes relevant.

Sources

Last reviewed August 23, 2026. Verify against the primary source before acting.

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