Every week someone asks a version of the same question: “I live in Ohio, should I form my LLC in Wyoming for the privacy and the taxes?” The three states in this title are the ones people mean. Here is what each one actually charges, side by side, and then the number the formation ads leave out: what it costs once the LLC has to register in the state where you actually work.
The short answer
Form in the state where the business operates. Wyoming, Delaware and Nevada are for three specific situations, and if you are not in one of them the out-of-state LLC costs more and changes nothing.
- You run the business from one state and are not raising outside moneyForm there. You pay that state’s taxes and fees either way; a second state only adds a second set.
- You are raising venture capital or issuing equity to several investorsDelaware, because that is what the investors’ documents are written for. Expect $400/year minimum entity tax on top of whatever your home state charges.
- You are fully remote with no fixed state, or building a holding company, and want your name off the public recordWyoming. $100 to form, $60/year, and no member names on the filing. Nevada is not the privacy state its marketing says it is.
Already formed in one of the three and operating somewhere else? Your home state almost certainly wants the LLC registered there as a foreign LLC. The free compliance check tells you which states apply.
The three states, side by side
State fees only, from each state’s published schedule. A registered agent in the state is required in all three and is not included; Northwest charges $125/year in any state.
Forming in Wyoming, Delaware or Nevada
| What you pay | Wyoming | Delaware | Nevada |
|---|---|---|---|
| Formation filing fee | $100 | $110 | $75 |
| Year one, state fees | $160 | $510 | $425 |
| Each year after | $60 | $400 | $350 |
| What the recurring charge is | $60/year | $400/year minimum entity tax | $150/year + $200/year business license |
| Member names on the public filing | Not required | Not required | Required |
| State income tax | No state income tax | Income tax up to 6.6%, top bracket starting at $60,000 of taxable income (2026 tax year) | No state income tax |
Wyoming’s annual report is the greater of $60 or 0.0002 of assets located in Wyoming, so an LLC holding property there pays more than the base. Nevada’s recurring charge is the Annual List plus the state business licence renewal, both mandatory.
What Wyoming and Delaware actually offer
Wyoming
Delaware
The problem: you still owe your home state
This is the part the formation ads leave out. Form the LLC in Wyoming, live and work in California, and California treats the LLC as a foreign entity doing business in the state. You must register it in California, pay California’s franchise tax, and file California’s reports. Wyoming’s zero income tax does not reach across the border.
Wyoming LLC operating in California, against a California LLC
| Line | Form in Wyoming, register in California | Form in California |
|---|---|---|
| Formation filing fee | $100 (Wyoming) | $70 |
| California foreign registration | $70 | Not needed |
| Recurring, each year | $60 Wyoming + $800 California | $800 |
| Registered agents | Two, one in each state | One |
| Annual filings to track | Two states | One |
California’s $800 is the $800 minimum franchise tax, due whichever state the LLC was formed in. The California Statement of Information ($20 every two years) applies on both sides.
The Wyoming route pays everything the California route pays, plus Wyoming’s fees, plus a second agent. The same arithmetic holds for every operating state, not only California: the pair pages for Texas to Delaware, Florida to Nevada and every other home state into these three carry the two routes side by side with your state’s own figures.
Who actually benefits
Delaware is the right choice if you are raising venture capital, issuing equity to several investors, or building a company where a sophisticated legal dispute is likely. Investors expect it and their lawyers draft for it. If none of that applies, Delaware’s advantages are theoretical and its $400/year minimum entity tax is not.
Wyoming makes sense if you are a fully remote business with no physical presence in any one state, want no member names on the public record, or are structuring a holding company. Real estate investors with rentals in several states sometimes use a Wyoming holding LLC, and even then each property state may require its own registration.
Nevada is the one to be most skeptical of. It costs $425 in year one and $350 every year after, lists member names on the public filing, and its no-income-tax rule helps only a business that is in Nevada.
For most people, freelancers, consultants, small online businesses, single-member LLCs run from a home office, forming in the home state is simpler, cheaper and equally protective.
The pitch to be skeptical of
- “Form in Wyoming to avoid state taxes.” You owe tax where you live and work, whatever the LLC’s state of formation. Wyoming’s zero rate helps if you are in Wyoming.
- “Delaware has the best legal protection.” Every state’s LLC statute provides limited liability. The Court of Chancery matters for complex shareholder disputes, not for a single-member consultancy.
- “Nevada is the best state for LLCs.” See the table: $425 in year one against $160 for Wyoming, and member names go on the public filing.
How to decide
Where do I live and work? If it is one state and you run the business from there, form there. You pay that state’s taxes regardless.
Am I raising outside investment? If yes, talk to your lawyer about Delaware. If no, it does not matter.
Do I need my name off the public record? Wyoming and New Mexico offer that, and so do fourteen other states on our reading; the anonymous LLC states guide has the statute-by-statute list. Anonymous on the Secretary of State website is not anonymous to the IRS or to a court with subpoena power.
If you already formed in Wyoming or Delaware and operate elsewhere, you likely need to register in your home state. Our foreign qualification guide explains the process, the triggers guide covers which activities require it, and if you formed in Delaware the guide to running a Delaware LLC in another state walks through the two-state setup you now have.
Bottom line
Wyoming for a remote or holding business that wants privacy, Delaware for a company raising money, your home state for everyone else. Whatever you choose, a registered agent with an address in each state is required, and if the LLC operates outside its formation state the home state will want it registered there too.
Forming where you actually operate? Northwest does it for $39 plus the state fee.
Its address goes on the filing instead of yours, the first year of registered agent is included, and the agent renews at a flat $125/year with no second-year jump. If you do end up with a two-state setup, both agents sit in one account with one renewal date.
Form with Northwest ↗Or undo it, if the two-state setup is not worth keeping
Already formed out of state?
Check if your LLC needs to register where you actually operate.
Sources, research & corrections
Sources: Wyoming Secretary of State, Delaware Division of Corporations, Nevada Secretary of State, California Secretary of State and Franchise Tax Board, and the fee schedules behind our state filing guides. Every figure on this page is drawn from that data at build time; the last-reviewed date for each state is on its guide.
This guide provides general information based on publicly available state requirements. It is not legal advice. Consult an attorney for guidance specific to your situation.