Vincenzo Villamena, CPA & founder of Entity Inc., helps global entrepreneurs with U.S. incorporation, tax filing and compliance.
When you Google “best state to open a U.S. LLC as a non-resident,” you’ll often see the same duo—Delaware and Wyoming. If you research a bit more, you may notice that many consider Wyoming the best choice for small- to medium-sized businesses. Wyoming might not be a big business hub like New York, Silicon Valley or Delaware, where many huge companies got started. But it has become one of the best places to form an LLC, especially for non-residents.
The numbers back it up. In 2023 alone, over 150,000 LLCs were formed in Wyoming. People often say Wyoming has more cows than residents, but at this rate, it may soon have more LLCs than people.
But what makes Wyoming the best option for non-residents? Here are a few key reasons why I recommend it.
Wyoming has no state income tax and franchise tax.
One of the best things about Wyoming is the absence of a state income tax. This means LLCs’ profits aren’t subject to extra taxation at the state level, leaving more money in owners’ pockets. Wyoming also stands out by not taxing corporate shares or imposing a corporate income tax, which is something you won’t find in many states. Meanwhile, states like Delaware tax any income earned within the state, driving up operational costs.
In some states, business leaders must pay a franchise tax annually, even if their company isn’t making a profit. For example, Delaware’s annual franchise tax is $300, and it can be higher in other states. Wyoming, on the other hand, doesn’t charge that extra fee, making it a more appealing option for entrepreneurs.
Because there’s no personal income tax, corporate income tax or franchise tax, Wyoming is one of the most tax-friendly states for LLCs, especially non-U.S. entrepreneurs.
Wyoming makes setting up an LLC simple and cost-effective.
Starting an LLC in Wyoming is simple and affordable. The filing fee is $100, with a quick processing time. The standard processing time for mail filings is typically 10-15 business days, plus additional time for mailing. Online filings, on the other hand, are processed immediately upon submission—in my experience, taking up to 1-2 days.
There’s also an annual report fee paid to the Wyoming Secretary of State as a maintenance cost. On top of that, I’ve found that Wyoming’s customer service handles LLC updates faster than Delaware, where processing can take weeks.
Wyoming’s asset protection laws are strong.
Wyoming has some of the strongest asset protection laws in the U.S., keeping personal assets from business liabilities. Even if you owe money personally, creditors can’t take over your LLC or its assets—they can only go after any profits you choose to take out (if there are any). And if your business gets sued, only the LLC’s assets are at risk, not your home, car or savings.
Wyoming laws ensure strong privacy for LLC owners.
Wyoming has a long tradition of individual rights and business-friendly policies, making it a leader in protecting LLC owners. One key advantage of a Wyoming LLC is privacy—unlike many states, Wyoming does not require LLC members or managers to be listed on public records. This ensures greater anonymity and confidentiality, making it an ideal choice for those who value discretion.
Wyoming leads in blockchain regulations.
If you’re in the blockchain world, you know how quickly regulations can change or become limiting. Wyoming is one of the pioneers in this field, setting itself apart with crypto-friendly legislation: It passed progressive blockchain and fintech laws in 2018, recognized digital assets as property in 2019, and introduced crypto bankruptcy protections and decentralized autonomous organization (DAO) frameworks in 2024.
In Wyoming, there’s no state tax on crypto earnings or transactions, which is why many blockchain and fintech businesses choose a Wyoming LLC.
Another great thing about Wyoming is its DAO LLC setup, which basically gives decentralized organizations the same legal protections as regular companies—without losing their decentralized nature. On top of that, Wyoming launched the first crypto-focused bank in the United States, so there’s now a regulated banking option for anyone working with blockchain.
Before forming an LLC in Wyoming, consider the drawbacks.
Wyoming’s low costs and strong privacy make it an attractive option, but it’s not ideal for all non-U.S. residents. While it offers greater privacy than many states, it doesn’t guarantee complete anonymity—members and managers must still provide contact details and a physical address (not a P.O. Box) to the registered agent.
Despite its popularity, Wyoming isn’t as widely recognized as Delaware, especially by some international banks, which may complicate transactions.
On top of that, its legal framework for LLCs is still developing, whereas Delaware’s well-established case law offers more certainty when interpreting the LLC Act.
How can non-residents make the right choice for their needs?
There’s one question my team and I get all the time: Wyoming or Delaware? Here’s the simple answer. If you’re looking to sell your company or attract venture capital, Delaware might be a good choice. VCs and investors prefer Delaware, and its legal system is built for scaling startups.
But if privacy, asset protection and low costs are your priorities, Wyoming may be the better choice.
With straightforward regulations, low fees and strong privacy laws, Wyoming makes running an LLC simple and efficient. For international business owners, this means fewer formalities, no state taxes and a structure that works well no matter where you live. Instead of dealing with extra paperwork and costs, you can focus on growing your business.
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.
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