Delaware vs Nevada vs Wyoming LLC is one of the most challenging decisions foreign business owners face when incorporating in the US.
Of course, the other challenging decision is where (and how) to open US bank accounts.
Fortunately, in this article, we’re going to help you navigate both of these challenges.
On the other hand, if you already have a US LLC, you can also use our other free US LLC resources including articles on how to request an EIN verification letter 147c, US LLC taxes, and of course how to open traditional bank accounts remotely.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Delaware vs Nevada vs Wyoming
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Delaware vs Nevada vs Wyoming LLCs
In past articles, we have discussed Delaware vs Nevada vs Wyoming LLCs directly, taking a look at the pros and cons, advantages and disadvantages, and important considerations before registering in any of these states.
In this article we will provide an overview of each, sharing the specific reasons that a business may choose to register in one of these states over another and how they could impact your options when it comes to banking.
Of course, if you have any questions don’t hesitate to contact us and ask. Or if you are ready to get started with bank account opening you can also join GlobalBanks USA and our team can assist you with opening accounts 100% remotely at traditional brick-and-mortar banks.
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Delaware LLC
Delaware is by far the most popular US state for registering LLCs. However, there is a specific reason for this, which is that Delaware is the preferred option of professional investors. In other words, if you plan to raise capital in the future or dream of turning your company into a venture backed startup, then you will likely want to consider Delaware.
Delaware became so popular with professional investors thanks to an overly supportive legal system, mandating courts to not challenge management decisions, and the Delaware Court of Chancery.
By many, the Delaware Court of Chancery is considered the most capable court for resolving corporate disputes in the US. In large part, this is due to the high volume of cases that it sees thanks to the presence of major corporations from across the country.
That said if you are considering incorporating in Delaware, you should consider the costs of maintaining your Delaware LLC as it is more expensive than other options.
Business owners who are interested in operating a business outside of its registered state, such as a Delaware LLC operating in Florida, can click this link to learn more about the application process.
Wyoming LLC
In our experience, the Wyoming LLC is fast becoming one of the most popular, at least with foreign non-resident business owners. One of the reasons for this is that a Wyoming LLC is one of the most affordable options. Unlike Delaware, Wyoming LLCs do not have to pay quarterly franchise taxes or additional fees. Instead, maintenance is annual and relatively low.
Additionally, Wyoming offers a very high level of privacy. While not anonymous, the information about LLC members and managers is not publicly available. In fact, the members and managers do not need to be named on any of the company documents filed with the registrar. Instead, this information can be replaced with the name of the registered agent, who would then maintain information on the members of the LLC directly.
It’s also important to note that unlike other “anonymous US LLCs”, Wyoming LLCs have a high likelihood of success when it comes to opening bank accounts. Thanks in part to their increased use among foreign business owners, Wyoming LLCs are more common and therefore raise fewer questions during the account opening process.
With the above in mind, a Wyoming LLC is a viable option for anyone looking for a low-cost LLC with a high degree of privacy in the USA.
Alternatively, if you would like to compare another choice for registering an LLC, specifically Wyoming vs New Mexico LLC, you can do so by clicking this link here to explore if New Mexico is a suitable option for you.
Nevada LLC
When compared to the other available options, Nevada is not nearly as common, at least not with foreign non-resident business owners. Perhaps one reason for this is that it does not offer many unique benefits when compared to the other options (e.g. Delaware) and it is not as affordable as other options (e.g. Wyoming).
That said, if you are looking for expedited LLC formation, Nevada may be worth considering. In fact, the state offers three different levels of expedited LLC formation, the fastest of which can be completed within one hour.
Conclusion
When trying to determine Delaware vs Nevada vs Wyoming LLC, it’s important to consider your unique benefits, circumstances, and objectives for the company. With this in mind, here are a few considerations you should think through before deciding where to form your LLC:
- Do you plan on raising capital in the future?
- Is your company a subsidiary of another US company?
- Do you require remote bank account opening?
- How much are you comfortable paying to register your LLC?
- How much are you comfortable paying to maintain your LLC?
- What level of annual reporting are you happy to complete?
- Would you prefer if your personal information remains private?
- Do you have ties to any of the states that you are considering?
These are just a few of the initial questions that you should consider before deciding where to form a US LLC. If you would like clarification on any of these, don’t hesitate to contact us directly and we would be happy to assist you.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking for the best state to register an LLC in. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Is it Better to Incorporate in Delaware or Wyoming?
Whether it is better to incorporate in Delaware or Wyoming depends on your objectives and the plans that you have for the business in the long term. For example: Do you plan on raising capital in the future? Do you want the names of members and managers to be completely private? Do you have business operations in either state? All of this information will help decide which state is best for you in terms of incorporation.
Should I Start an LLC in Nevada?
Nevada is a popular choice for registering US LLCs. However, it is not as popular as other options. If you are looking for privacy, low-cost registration, and low-cost maintenance, Wyoming may be the best choice for you to consider.
How Do I Know Which State Is Best to Incorporate My Business In?
In order to decide which state is best to incorporate your business, you should consider your desire for privacy, the capital needs of your business, the specific geographies you plan to serve, and whether or not you have ties to the available states. Additionally, if you are a foreign non-resident who wants to open bank accounts remotely, you should also consider which states are more commonly used as this can impact bank account opening.
Ready to Open Accounts With Banks in the USA?
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