Delaware or Wyoming LLC: which one for a freelancer?

By SoloWOS teamPublished October 23, 2026

IN SHORT

For most US freelancers, neither. If you live and work in one state, an LLC formed in Delaware or Wyoming still has to register as a foreign LLC in your home state, so you pay both states' fees plus an out-of-state registered agent. Delaware or Wyoming mostly makes sense if you live outside the US or are raising money.

Prices and limits as of October 26, 2026.

Key takeaways

Delaware charges LLCs a $400 annual tax due June 1 (raised from $300 in 2026); Wyoming's annual license tax starts at $60.
California charges its $800 annual LLC tax to any LLC doing business in California, wherever the LLC was formed.
Forming out of state doesn't change your federal taxes: a single-member LLC is a disregarded entity and you still file Schedule C.
Both states require a registered agent with a street address in the state, which costs $100 to $125 a year through Stripe Atlas or Northwest.
Delaware fits founders raising venture money; Wyoming fits non-US residents who want low annual fees; a freelancer living in one state usually fits neither.

Delaware and Wyoming show up in every "best state for an LLC" list, usually next to a formation service's buy button. The lists leave out the part that matters to a freelancer: you don't stop owing your home state anything. This post, from our business setup series, puts both states' fees next to a home-state LLC and shows when the out-of-state choice pays off.

What each state charges

Delaware vs Wyoming, from each state's official site (checked October 23, 2026)
	Delaware	Wyoming
To form	$110 for a certificate of formation, on the August 2026 fee schedule (Stripe Atlas's $500 includes it)	$100 for articles of organization
Every year	$400 annual LLC tax, due June 1 (raised from $300 by House Bill 400 in 2026; older pages still show $300); no annual report	Annual report license tax: $60 or two-tenths of a mill on Wyoming assets, whichever is greater
Late payment	$200 penalty plus 1.5% interest a month	Subject to dissolution if not paid within 60 days
Registered agent	Required in Delaware	Required, with a street address in Wyoming and the agent's written consent
Agent cost if you live elsewhere	Stripe Atlas: first year included, then $100 a year; Northwest: $125 a year after the first	Northwest: first year included with its $39 formation, then $125 a year

The double-cost problem

States generally require an LLC formed elsewhere to register before doing business there (a foreign registration), and that registration carries its own filing fee and yearly reports. If you design websites from your apartment in Ohio, your Wyoming LLC is doing business in Ohio. You'd pay Wyoming, pay an agent in Wyoming, and pay Ohio's foreign registration and recurring fees, which are typically similar to what a home-state LLC would cost anyway.

California spells it out. Its Franchise Tax Board charges the $800 annual tax to every LLC that is organized in California or doing business there. A Californian with a Wyoming LLC pays the $800 regardless, and the Wyoming fees are pure extra.

WORKED EXAMPLE

A developer in Los Angeles, over 3 years

Option A, a California LLC: $70 to form, $2,400 in annual tax (3 x $800) and $40 for two Statements of Information, $2,510 in total. Option B, a Wyoming LLC registered in California: the same $2,400 in annual tax plus California's foreign registration and filing fees, and on top of that Wyoming's $100 to form, $120 in license taxes (2 x $60) and a Wyoming agent through Northwest ($39 to form with the first year of agent included, then $250 for years 2 and 3). The Wyoming side alone adds $509 over 3 years and saves nothing on taxes.

WORKED EXAMPLE

A consultant in Florida using Stripe Atlas

A Florida LLC filed directly: $125 to form, then $138.75 a year, $402.50 over 3 years. A Delaware LLC through Stripe Atlas: $500, then $100 a year for the agent, plus Delaware's $400 tax each June 1 (two payments in 3 years), $1,500, plus Florida's foreign registration and annual report fees on top, because the consultant works from Florida.

Taxes don't follow the state of formation

The IRS treats a single-member LLC as a disregarded entity unless it elects otherwise, so you report the business on Schedule C and pay self-employment tax the same way whether the LLC was formed in Wyoming, Delaware or your home state. Wyoming has no state income tax, but that helps people who live in Wyoming, not people who only form an LLC there. Your home state still taxes you as a resident. To estimate the federal side, use the self-employment tax calculator.

When Delaware makes sense

You plan to raise venture money. Investors are used to Delaware companies, which is why Stripe Atlas forms there. That usually means a corporation, not an LLC, so get advice before choosing.
You live outside the US and need a US company to sell to US clients, and you want a service like Stripe Atlas to handle formation, the agent and the paperwork.
Your home state is Delaware.

When Wyoming makes sense

You live in Wyoming.
You live outside the US, have no home state, and want the lowest yearly cost: a $60 minimum license tax plus an agent.
You hold assets in an LLC that doesn't do business in any other state. That's rarely a freelancer's situation.

Decide in one table

Where to form your LLC
Your situation	Form in	Why
You live and work in one US state	Your home state	One set of fees, no out-of-state agent, no foreign registration
You live in California	California	The $800 tax applies either way
You'll raise venture money	Delaware (probably as a corporation)	What investors expect; ask a lawyer
You live outside the US	Delaware or Wyoming	Delaware for the Atlas route and investors; Wyoming for lower yearly fees
You move often within the US	Your current home state	Register as foreign if you move, or form again

A note on privacy claims

Some formation sites pitch Wyoming or Delaware for anonymity. We didn't verify what each state publishes about owners, and your home state's foreign registration asks for its own information. What's certain: the registered agent's name and street address go on the public filing, which is why people use a paid agent instead of their home address. Our registered agent explainer covers that choice, and LLC fees by state has the yearly costs for 15 states.

Where SoloWOS fits

SoloWOS doesn't form LLCs or give tax advice. Wherever your LLC is formed, you can send invoices clients pay by card under its name and log state fees and agent renewals in Expenses.

Prices checked on October 23, 2026 on each company's site. State fees from each state's official site. This is general information, not legal or tax advice; a lawyer or CPA in your state can confirm what applies to you.

Questions

Is a Wyoming LLC cheaper than a Delaware LLC?

Yes, on yearly fees alone: Wyoming's annual license tax starts at $60, while Delaware charges a $400 annual LLC tax. But if you live in another state, both add a registered agent and your home state's foreign registration fees, so the cheapest choice is usually your home state.

Can I live in California and form my LLC in Wyoming?

You can, but California's Franchise Tax Board charges its $800 annual tax to every LLC doing business in California, wherever it was formed. You'd pay California, Wyoming and a Wyoming registered agent, and register the LLC in California as a foreign LLC.

Does a Delaware or Wyoming LLC lower my taxes?

Not federally. A single-member LLC is a disregarded entity by default, so you file Schedule C and pay self-employment tax the same way. Wyoming's lack of a state income tax only helps people who live there.

Do I need a registered agent in Delaware or Wyoming?

Yes. Every LLC needs a registered agent with a street address in the state of formation. If you don't live there, you pay a service: Stripe Atlas charges $100 a year after the first year in Delaware, and Northwest $125 a year after the first.

Sources

Facts checked against these sources on October 23, 2026. Rules and amounts change, so confirm them at the source before you file or sign.

We don't get paid by any brand on this page: no affiliate links, no sponsored placements.

Last reviewed: October 23, 2026

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