Wyoming vs Delaware LLC is one of the most common comparisons that foreign non-residents make when trying to decide where to incorporate in the US.
And it makes sense, both Wyoming and Delaware present interesting advantages for foreign non-residents. But, there are disadvantages to each as well.
In this article, we’re going to compare these advantages and disadvantages. We’ll also share which state could be better for you based on a few key variables.
Regardless of which state you choose, you can continue to open corporate bank accounts, specifically a US business bank account for non-resident entities, and much more.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Wyoming vs Delaware
- Wycoming LLC
- Delaware LLC
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Wyoming vs Delaware
Wyoming and Delaware are both popular jurisdictions for registering LLCs in the United States. This is true for foreign non-residents and US citizens living in the US. In both cases, Wyoming and Delaware present interesting opportunities. However, as we’ll explore below, there are advantages and disadvantages to both.
With this in mind, before choosing which state is most appropriate for your situation, you should consider your objectives and what you are looking to optimize for.
For example, are you trying to prioritize low cost, privacy, familiarity with banks, ease of raising capital, or another variable entirely?
These are a few variables that could result in you choosing one state over the other when comparing a Wyoming vs Delaware LLC.
Of course, both LLCs also have shared benefits as well, including:
- Ability to open US bank accounts 100% remotely
- Access to US payment processors
- Low-cost maintenance in a reputable jurisdiction
In other words, both jurisdictions are suitable options for most individuals looking to register a US LLC and open US bank accounts remotely.
Alternatively, if you are looking to register an LLP, you might consider registering your business as a New Mexico Limited Liability Partnership and benefit from this type of structure instead.
Do You Want More USA Banking Insights?
Sign up here to receive our Free USA Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
Wyoming LLC
Wyoming has become one of the most popular jurisdictions for foreign non-residents to incorporate their US LLC. And, considering how many options are available, that is no small feat. There are a few key reasons for this when compared to other alternatives, which we’ll discuss below.
That said, it’s important to note that there is one key disadvantage you might want to consider before incorporating here – we’ll take a look at this below as well.
Wyoming LLC Pros
Wyoming LLCs have gained recognition as one of the best US states for registering an LLC as a foreign non-resident. And, while they are similar to LLCs in other US states, there are a few key differences, including privacy.
Wyoming LLCs are truly anonymous LLCs. While Wyoming does have a State registry, these documents only list the name of the local registered agent.
In other words, if you do not want to register an LLC and have your personal information readily available to the public, Wyoming may be worth considering.
Wyoming LLC Cons
Depending on the specific activities of your business and your goals of setting up an LLC, Wyoming may have a number of disadvantages that you will want to consider.
However, generally speaking, there is one challenge in particular that can face most people when registering a Wyoming LLC, which is banker familiarity.
Naturally, if you are considering opening a bank account in Wyoming, banks and bankers will be familiar with a Wyoming LLC. However, if you are looking to open a bank account in another state, they may be less familiar (and therefore less accommodating) to a Wyoming LLC.
That said, it is still possible to open US bank accounts (including remotely) for a US LLC registered in Wyoming. If this is something you are struggling with, feel free to contact us to discuss your options.
We took an even closer look at the pros and cons of Wyoming LLCs in a previous article. So if you are looking for a more detailed look at this popular structure, please review past articles for more information.
Delaware LLC
Delaware is by far the most popular jurisdiction to register US entities. But, that doesn’t necessarily mean it’s the best jurisdiction for your needs.
In fact, in most cases, Delaware is used by two types of businesses, those that expect to raise capital and large corporations. There are a few key reasons why these two groups use Delaware so frequently, which we’ll cover below.
That said, like Wyoming, Delaware also has one key disadvantage that you might want to consider before incorporating here.
Delaware LLC Pros
Delaware is the most popular jurisdiction for corporate registration in the United States. This in itself is a huge benefit because it means that banks everywhere will be familiar with the structure and have likely onboarded a number of Delaware LLCs during their career.
However, the main benefit of registering in Delaware is actually the catalyst that has attracted many companies to it in the first place, which is its supportive legal framework.
For example, Delaware has what’s known as the “business judgment rule”, which essentially instructs courts not to second-guess managers in a business. While that may not seem important to a solo entrepreneur, it can make a huge difference for publicly listed companies and massive corporations. This alone is likely a contributing factor to why Apple, Coca-Cola, Exxon, Facebook, and many other huge companies call Delaware home.
Delaware LLC Cons
Similar to Wyoming, there may be a number of disadvantages to registering in Delaware depending on your business activities and personal objectives. That said, when comparing Delaware to other states, one disadvantage, in particular, stands out, which is cost.
In addition to a registered agent fee (which also applies to Wyoming), Delaware also charges the Delaware Franchise Tax, which is a $300 annual charge. While $300 may not seem like a high fee, it can result in the cost of maintaining your LLC going up threefold compared to Wyoming.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking to register an LLC in the US. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Do I Know Which State Is Best to Register My LLC?
In order to determine which state is best to register your LLC, you should consider your personal objectives, the prospective business activities, how much privacy you would like to maintain, and the annual costs that you are willing to pay.
Which Banks Allow Foreign Business Owners to Open Accounts?
Many US banks allow foreign business owners to open accounts. However, the specific bank that you can access will depend on the business activities, the countries involved, how much you can deposit, and whether you want in person or remote opening.
Should I Reigster My LLC in Wyoming or Delaware?
In order to decide whether you should register your LLC in Wyoming or Delaware, you should consider the pros and cons of each, along with the specific objectives that you have for the business. With this in mind, both options present interesting opportunities and we cover the advantages and disadvantages in depth in this article.
Ready to Open Accounts With Banks in the USA?
If so, you can get access to GlobalBanks USA (our dedicated US banking service) in just a few clicks.
GlobalBanks USA is a 100% personal account opening solution. It provides direct access to our team of US banking experts.
When you join, you receive…
+ Expert suggestions on where to open US bank accounts.
+ Step-by-step support to navigate opening US bank accounts.
+ Direct introductions to helpful and responsive bankers.
+ Plus, detailed guides to maximizing the value you get from your new US bank account.
And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
To learn more about GlobalBanks USA, visit the product page to see how our team can help you successfully open US bank accounts!
