Annual costs in 2026
| Wyoming LLC | Delaware LLC | |
|---|---|---|
| State filing to form | $100 (Articles of Organization) | Certificate of Formation — Delaware revised many filing fees from 1 August 2026, so check the current schedule |
| Annual state charge | Annual report licence tax: $60 minimum (or $0.0002 per dollar of Wyoming assets, if higher) | Flat annual tax of $400 (raised from $300 under House Bill 400) |
| Due date | First day of the anniversary month of formation | 1 June every year |
| Late payment | Can lead to administrative dissolution | $200 penalty plus 1.5% interest per month |
| Registered agent | Required (paid service) | Required (paid service) |
On state charges alone, Wyoming is usually several hundred dollars a year cheaper. Registered-agent fees are similar in both.
Side-by-side on what actually matters
| Wyoming | Delaware | |
|---|---|---|
| State income tax on the LLC | None | Generally none for an LLC with no Delaware operations |
| Investor familiarity | Low | High — the default for funds and acquirers |
| Business courts | Standard state courts | Court of Chancery, with deep case law |
| Best for | Low-cost, owner-run businesses | Anything that may take investors or be sold |
When Wyoming fits
- A one-person services or consulting business invoicing US clients.
- A US storefront for an Indian product with no plans to raise capital.
- A holding vehicle where running cost matters more than investor optics.
When Delaware fits
- You may raise money, add co-owners or sell the business.
- Counterparties (enterprise customers, platforms, lenders) expect Delaware.
- You want predictable, well-tested law for disputes between owners.
What’s the same in both states
- Form 5472: a foreign-owned single-member LLC files a pro forma Form 1120 with Form 5472 every year, whichever state it is in. Read the Form 5472 guide.
- Where you operate: if you have an office or employees in another state (say California or Texas), you register and may pay tax there — the formation state doesn’t change that.
- India side: your investment is an overseas investment under FEMA, reported through your AD bank, and the holding goes into Schedule FA of your income-tax return. See the ODI guide.
- No BOI report: US-formed LLCs no longer file beneficial-ownership reports with FinCEN.
First: should you be an LLC at all?
For India-resident owners, an LLC that the US treats as “disregarded” may still be treated as a separate foreign company for Indian tax — which can make foreign tax credits harder to claim. And if there’s any chance you’ll raise venture capital, you’ll need a C-Corp anyway. Compare before you choose a state: Delaware C-Corp vs LLC, or go straight to US company registration from India.
Frequently asked questions
Is a Wyoming LLC cheaper than a Delaware LLC?
Usually yes. Wyoming charges a $100 filing fee and a $60 minimum annual report licence tax, while Delaware charges a flat annual LLC tax ($400 for the 2026 tax year onwards, first payable 1 June 2027), plus its formation fee. Registered-agent costs are similar.
What is the Delaware LLC annual tax in 2026?
$400 for the 2026 tax year onwards, first payable by 1 June 2027 (the payment due 1 June 2026, for 2025, was $300). Delaware raised it under House Bill 400. Late payment attracts a $200 penalty plus 1.5% interest per month.
When is the Wyoming LLC annual report due?
On the first day of the LLC's anniversary month — the month it was formed.
Does a Wyoming LLC owned by an Indian need to file Form 5472?
Yes. A foreign-owned single-member LLC files a pro forma Form 1120 with Form 5472 annually, regardless of the state of formation.
Which state should I choose if I plan to raise funding?
Delaware — and usually as a C-Corp rather than an LLC, since most venture investors require a Delaware C-Corp.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.