2026 Decision Guide

Best States to Form an LLC

Compare Wyoming, Delaware, and Florida to see which state may be the best fit for your business goals, privacy needs, taxes, and startup plans.

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WyomingDelawareFlorida
Wyoming
Privacy
Delaware
Startups
Florida
Simple
Quick Comparison

Wyoming vs Delaware vs Florida

Three popular states, three very different strengths. Here's how they stack up at a glance.

Wyoming
LLC
Best for
Privacy, online businesses, low ongoing cost
Privacy
Strong — members not listed publicly
Taxes
No state income tax
Fees
$100 filing · ~$60/year
Business fit
Online entrepreneurs, non-U.S. residents, solo operators
Downside
Less recognized by VCs than Delaware
Delaware
LLC
Best for
Startups, investors, venture-backed companies
Privacy
Moderate — members not public, but franchise tax filings exist
Taxes
No state tax on out-of-state income · $300 annual franchise tax
Fees
$110 filing · $300/year franchise tax
Business fit
VC-backed startups, holding companies, future C-corps
Downside
Higher annual cost than Wyoming
Florida
LLC
Best for
U.S.-based entrepreneurs & simple setups
Privacy
Lower — members listed publicly
Taxes
No personal state income tax
Fees
$125 filing · $138.75/year annual report
Business fit
Florida residents, ecommerce, agencies, real estate
Downside
Less privacy than Wyoming
Which State Is Right For You?

Find your fit in 30 seconds.

Online entrepreneurs

Recommended: Wyoming

If you run an online brand, content business, or remote service, Wyoming's privacy protections and ~$60/year cost make it hard to beat.

Startups seeking investors

Recommended: Delaware

Almost every U.S. VC expects to see a Delaware entity. The court system and legal precedent are built for high-growth companies.

U.S.-based small business owners

Recommended: Florida or home state

If you live and operate in Florida — or any other state — form there. It avoids foreign qualification and double annual reports.

Non-U.S. residents

Recommended: Compare Wyoming & Delaware

Most international founders weigh Wyoming (lowest cost, strong privacy) against Delaware (best for raising U.S. capital).

Wyoming

Why Wyoming Is Popular

  • Strong member privacy — owners aren't listed in public filings
  • No state income tax for LLCs or owners
  • Low ongoing cost — about $60 per year
  • Top pick for online entrepreneurs and digital businesses
  • Friendly to non-resident business owners
Delaware

Why Delaware Is Popular

  • Court of Chancery — a dedicated business court trusted by VCs
  • Most U.S. investors expect to invest in Delaware entities
  • Strong corporate reputation and legal precedent
  • Standard choice for venture-backed startups
  • Easy path to convert into a Delaware C-corp later
Florida

Why Florida Is Popular

  • No personal state income tax
  • Straightforward online filing through Sunbiz
  • Strong community of ecommerce and agency founders
  • Good fit for U.S.-based small business owners
  • Affordable to start and maintain
FAQ

Questions, answered.

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