The original low-cost, high-privacy US LLC state — still the default choice for founders who don't need Delaware's court system.
Wyoming was the first US state to create the LLC structure, and it still runs the leanest version of it: no state corporate or personal income tax, no franchise tax, no requirement to name members or managers in the public filing, and formation is possible with as little as $1 in capital and no written operating agreement [1][2]. For a single-member holding company, a SaaS business with no local presence, or a founder who wants a US entity without a US-resident partner, it's usually the simplest option on the table.
The two reasons Wyoming shows up in more asset-protection plans than almost any other state.
Wyoming does not require members or managers to be named in the Articles of Organization, unlike most states [2].
A creditor of a member can't seize LLC assets or force a sale — a court can only redirect distributions via a charging order [2].
One filing can hold multiple internally-segregated series, useful for holding several assets under one umbrella without one filing per asset [1][2].
A $60 minimum annual report and no franchise tax keeps ongoing compliance costs among the lowest of any US state [1].
The two most common answers to "which US state" — here's where they actually differ.
| Wyoming LLC | Delaware LLC | |
|---|---|---|
| Annual state fee | $60 minimum annual report [1] | $300 flat annual tax, no annual report [3] |
| State income tax on LLC profits | None [2] | None (outside Delaware) |
| Members/managers named publicly | No [2] | No |
| Charging order protection | Sole remedy by statute [2] | Sole remedy by statute |
| Best known for | Lowest-cost, highest-privacy upkeep | Deepest body of business case law |
Delaware's edge is mainly relevant if you expect outside investors, a future IPO, or complex litigation. For most founder-owned or bootstrapped use cases, that edge doesn't offset Wyoming's lower running cost.
If you actually operate the business from another state, that state can require you to "foreign qualify" there too.
Banks, payment processors, and the IRS still require real ownership information as part of standard KYC and tax reporting.
FinCEN permanently ended the Corporate Transparency Act's beneficial ownership reporting requirement for US companies and US persons in 2026 [4].
What Otonomos charges to set one up, itemised.
| YEAR ONE | |
|---|---|
| Incorporation (incl. $100 WY state filing fee) | $269 |
| Registered agent & local address | $216 |
| Total | $485 |
The order page has the live pricing, add-ons and checkout — this page was just the homework.
No — there's no residency or citizenship requirement, and formation is done entirely through a registered agent.
Most banks and payment processors will require an EIN and will run their own KYC on the actual owners regardless of what's public in Wyoming's filing.
If you're bootstrapped and want the lowest ongoing cost, Wyoming is usually simpler. If you're raising a priced round, Delaware's legal precedent is usually worth the extra cost.