Wyoming LLC vs Delaware LLC for Foreigners | The Real Differences That Actually Matter

[kevin-dotcom-wq]

Okay so this was the question that kept me stuck for almost two weeks.
Every forum thread I read gave a different answer. Some people swore by Delaware. Others said Wyoming without hesitation. Nobody actually explained why it mattered for someone like me — a non-resident with no US address, no SSN, just trying to run a legitimate business.
So I did the research myself and here is the honest version.

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Delaware sounds impressive until you see the costs.

Delaware has this reputation because of Silicon Valley. VCs love it, lawyers know it, the court system is fast and predictable. If you are raising money from US investors, sure, Delaware makes sense.

But I was not raising money. I was a solo founder trying to get paid properly by US clients. For that situation Delaware's reputation does nothing for me but the costs are very real.

Minimum $300 franchise tax every year. Whether you made money or not. Add registered agent fees on top. That is real money leaving your pocket annually for zero practical benefit if you are running a small business.

Wyoming just made more sense for my situation.

No state income tax. Annual fees around $60 for most small LLCs. Your name is not publicly listed which I appreciated. Low cost every single year with no surprise minimums.

And here is the thing most people miss — your federal taxes are exactly the same either way. Forming in Wyoming versus Delaware does not change what you owe the IRS. It only changes what you pay the state. Wyoming is cheaper. That is really the whole argument.

Doola actually helped me make this decision.

I was still going back and forth when I started the formation process with Doola. Honestly expected them to just let me pick a state and move on. Instead they actually asked about my business — what I do, whether I had investors, what my revenue model looked like.

Based on that they recommended Wyoming. Explained exactly why for my specific situation. That five minute conversation settled two weeks of confusion.

Formation was smooth after that. Documents came through fast, registered agent included, EIN filing started right away. Nothing felt like I had to chase anyone or figure things out on my own.

So when does Delaware actually make sense?

If you are raising VC funding, yes. If your investors specifically ask for it, yes. If you are setting up a C-Corp with complex equity structure, maybe.

For everyone else — freelancers, consultants, agency owners, SaaS founders — Wyoming is almost always the better call.

My honest take.

Stop reading forum debates on this. The answer depends on your specific situation and for most non-resident founders running lean businesses the answer is Wyoming.

If you want proper guidance before making the decision, go through Doola. They will ask the right questions and point you in the right direction before you commit to anything.

Saved me from making the wrong choice and probably saved me a few hundred dollars a year in the process.

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