Why Delaware and Wyoming are so popular for forming a U.S. LLC as a non-resident? What is so special about these two states? 

U.S. Resident vs Non-U.S. Resident

If you live in the U.S. or if you have a physical office, meaning if you have a permanent establishment in any of the 50 states, you should choose that state to register your LLC.  This is because you will be legally required to register in that state anyway. 

People don’t normally need to double register in the state they domicile and in Delaware or Wyoming.

Why would you choose Delaware or Wyoming to be your state home?

Business Friendly States

To attract more businesses, they have made the incorporation process quick, easy, and affordable. If your business is already big enough or has great potential for growth, you and your investors would need stronger business laws and a legal system that can protect your LLC from lawsuits and any legal damages. In addition, if you register your LLC in Wyoming, your privacy would be better protected as your name and address won’t be listed in any public database.

No State Income Taxes

If you don’t run your business in these two states, there is no need to pay income taxes.  Wyoming is one of the eight states that doesn’t charge any state income tax at all.  Delaware does charge state income taxes but not for an entity that doesn’t have any operations in Delaware.  Other states may charge state income taxes if you have an employee, physical office, or any sales exceeding their permitted amount.

LLC Formation and Maintenance Costs of Delaware vs Wyoming

Business Name Reservation$75$50
LLC Formation$90$100
Annual Franchise Tax or Annual Report Fee$300(Min.)$50

Comments are closed