Which State Should You File Your LLC or Corporation in?

Start Your Business The Right Way

When forming an LLC or corporation, businesses have the option to incorporate in any state, regardless of their physical location. However, it is important for U.S. person (citizen or permanent resident of the U.S.A.) to carefully consider the pros and cons of each state before making a decision, as different states may offer different benefits and drawbacks. Factors to consider may include incorporation fees, tax laws, legal protection, and ease of incorporation.

By weighing these factors and consulting with legal and financial professionals, businesses can choose the state that is most beneficial to their specific needs and goals.

Forming an LLC or Incorporating in Wyoming 

While Delaware is often associated with LLCs, it is important to note that Wyoming was actually the birthplace of this business entity. In the late 1970s, the Wyoming legislature introduced the LLC, which quickly gained popularity and revolutionized the way businesses operate in the United States. The LLC was officially established in Wyoming in 1977. It is important for businesses to be aware of the various states that offer LLCs as a business structure and to carefully consider the benefits and drawbacks of each state when making a decision about where to incorporate.

Wyoming does not have an individual income tax. Wyoming also does not have a corporate income tax.

Wyoming does not tax out-of-state income, which means that even if the majority of your business is conducted elsewhere, it won’t be taxed by the state.

To entice LLCs and Corporations, the filing fees and franchise taxes are low in comparison to other states.

When you form an LLC or a Corporation in Wyoming, there is no business income tax or franchise tax to pay.

Wyoming also offers lifetime proxy, which means you can appoint someone else as a nominee to represent your stock or shares and vote on your behalf. This allows the legal owner of the shares or stock to remain completely anonymous.

Wyoming is the best State in the USA for Owner and Shareholder Privacy! Wyoming allows you to form your company privately.

Wyoming offers a business structure called the “Statutory Close Company Supplement” (also known as the “Close LLC” for Limited Liability Companies or the “Close Corporation” for corporations) for businesses with a limited number of shareholders. This option is available to Wyoming LLCs and corporations with 35 or fewer shareholders and may be appealing to family-owned businesses or small business partnerships. Statutory close companies have fewer regulations and can operate in a more informal manner similar to a partnership. This structure is often chosen by entrepreneurs and founders in Wyoming due to its flexibility and simplicity. The Statutory Close Company Supplement allows small companies to bypass some traditional corporate formalities, such as electing a board of directors or holding annual meetings.

Starting a Wyoming LLC or C-Corp may be a cost-effective and easy choice for new entrepreneurs and founders. Forming and running a business in Wyoming is usually cheaper and simpler than in Delaware, with low annual filing requirements. This simplicity can appeal to businesses seeking to reduce costs and paperwork.

While it is true that we are a Wyoming C-Corporation, it is important to note that there are several valid reasons why forming a business in Wyoming may be a desirable option for most small businesses. These may include the cost-effective and straightforward process of forming and maintaining a business in the state, as well as the favorable business environment and legal protections offered by Wyoming.

It is important for businesses to carefully consider their specific needs and goals and consult with legal and financial professionals before making a decision about the appropriate state of incorporation.

Forming an LLC or Incorporating in Delaware 

Delaware is the most popular choice for forming an LLC or Corporation outside of your home state. It has a reputation for being business-friendly, leading many people to decide to form an LLC or Corporation in Delaware. 

Delaware doesn’t tax out-of-state income, so if most of your business is conducted elsewhere, it won’t be taxed by the state. However, if you conduct business in Delaware, you’ll face a Corporate Income Tax and must file a Corporate Income Tax Return with the state.

Another important factor is that Delaware has a separate court, called the Chancery Court, that only hears business cases. Because of this, cases involving businesses are resolved more quickly than they would be in other states where they’re thrown on the docket with all other types of cases. The Court of Chancery quickly and very easily will settle the internal disputes of a company, among shareholders, officers and directors. The judges are experienced in business matters as well, whereas judges in other states may have little or no background in this area of law before taking the bench.

The Chancery Court makes Delaware appealing to institutional investors, especially since they will typically have a team of attorneys who are based in Delaware.

So, if your company is going to be seeking to raise capital from private equity or institutional investors in the near future then Delaware may likely be the right place for you to form your new business.

Forming a Company in your home state

When starting an LLC or corporation, businesses have the option to incorporate in any state, regardless of their physical location. However, in many cases, it may be more effective to incorporate in the state where the business is physically located and conducts the majority of its operations.

This is because incorporating in the home state often offers the benefits of familiarity with local laws and procedures, access to contacts, and proximity to government offices.

Additionally, if a business is physically located and primarily conducts operations in one state, it may not have sufficient business in another state to justify incorporating there. In this case, incorporating in the home state may be the most cost-effective option.

It is also important to note that if a business incorporates in one state but meets the criteria for doing business in another state, it may be required to register as a foreign business entity and potentially pay a registered agent to accept service of process in that state.

Wyoming Holding Company to the Rescue
(a.k.a. Anonymity Planning or How to Avoid Exposing Your Company to Potential Creditors)

Wyoming Holding Company and Setting Up Structures

A holding company provides benefits which are impossible to provide via a single business entity. Holding companies are created the same way other companies are, and may be either LLCs or Corporations. Instead of engaging in operations, they merely own and control other companies and assets.

Forming a Wyoming Holding Company(s) can offer many benefits including providing anonymity where possible, isolating liabilities and minimizing taxes when feasible. The Wyoming Holding Company can engage in operations via multiple business entities (subsidiaries or sister companies) when needed which is also called Setting Up Structures. Assets may also be loaned or leased to third parties.

In more simple terms, Setting Up Structures means using an entity that’s been setup in Wyoming to hold all of your other business interests where you are engaging in passive activities.

This advanced business model, also known as Setting Up Structures, requires some effort to setup but the resulting benefits more than pay for themselves.

Anonymity Planning

While it is generally more advantageous to form your LLC or Corporation in your home state, there may be situations in which the lack of privacy and anonymity offered by your home state presents a concern. If the public disclosure of information regarding business owners, members, shareholders, and directors is a concern, it may be necessary to consider alternative options that offer greater privacy protections. Wyoming Holding Company can be real and beneficial business tool part of the Anonymity Planning thanks to the strict privacy laws of Wyoming.

Anonymity Planning is a business strategy that allows you to protect the privacy of your business affairs with all the other benefits of Holding Companies. Setting Up Structures by creating Holding Companies is a major part of Anonymity Planning.

Anonymity Planning involves the strategic creation of business structures, such as forming an LLC (The Wyoming Holding Company) in Wyoming and then establishing another LLC or corporation (The Operating Company) in your home state. The Wyoming Holding Company that you first formed will become the shareholder or member of your other LLC or Corporation in your home state.

Who Uses Holding Companies and Anonymity Planning?
  • Real Estate Investors: Owning and renting real estate is inherently risky. Separating property management from the real estate can prevent catastrophic losses from slip and fall and other frivolous lawsuits. Follow our link to learn more about real estate holding companies.
  • E-Commerce: Opening subsidiaries for different product lines not only isolates risk, but makes it easier to sell product lines individually.
  • Families: One holding company makes it easier to manage disparate interests in other companies and assets. It also allows for the filing of a consolidated return.
  • Estate Planning: Rather than the effort of an estate plan, some choose to pass assets on via an LLC. While we always recommend an estate plan, generally using a trust, we know some clients do view this as a more affordable option.
  • Other Risky Industries: Any industry with risky but valuable assets. Those assets should be owned by one company and operated by another. See our examples below for more details.

While LLCs and Corporations may both be used for a Wyoming Holding Company, for U.S. person we recommend Wyoming Anonymous LLC for a Holding Company.

Forming a Wyoming Holding Company as a Wyoming LLC or a Wyoming Corporation is no different than forming the same type Wyoming business entity and you can hire us to form the business entity for you.

Anonymity Planning by Setting Up Structures requires careful planning and execution by a Professional Business Attorney. This advanced business model is tailored to meet the specific needs and circumstances of your business. While implementing Anonymity Planning may involve additional costs, such as the formation of multiple companies in different states and the involvement of a Professional Business Attorney, it is worth considering if maintaining anonymity is a priority for your business.

You may hire us to form a Wyoming Holding Company for you but we strongly advise against trying to implement Anonymity Planning by setting up structures without the involvement of a Professional on your own, as one small mistake may render the business model useless and can be costly as a result.

For more information on Anonymity Planning, please feel free to contact us or click the button below.

where to form my new business?

Selecting the appropriate location for a new business is a critical decision that involves considering various factors such as affordability, accessibility, and competition. While it is important to move quickly and begin generating revenue, it is also essential to carefully consider the long-term implications of the business location. The chosen location can significantly impact nearly every aspect of the business, including finances, and it is important to ensure that the location is suitable for the long-term success of the business.

It is important for businesses to carefully consider their specific needs and goals and consult with legal and financial professionals before making a decision about the appropriate state of incorporation.

Which State? (International Person)

WE HAVE Answers

Ask Us Anything

When choosing a name for a business in the United States, it is important to consider a few key factors including availability, distinctiveness, legality and branding.

If you are setting up a Limited Liability Company (LLC) or a Corporation, you will also need to include a designator (suffix) in your business name, such as “LLC” or “INC.” This will help to differentiate your business from other types of legal entities.

Please click here to find out more.

It is not easy to determine which type of business entity, an LLC or corporation, is best for you as it depends on multiple factors such as your business goals, the nature of your business, and your individual circumstances.

If you are a U.S. person / U.S. resident please click here to find out more.

If you are a non-U.S. person / non-U.S. resident please click here to find out more.

Wyoming is a leading incorporation domicile due to low fees, no taxes, simple filing and maintenance requirements along with allowing anonymous LLCs and corporations.

For more information please click here.

If you are a U.S. resident not living in Delaware or Wyoming, the best state to form your business depends on various factors. Typically, it’s advantageous for a U.S. citizen or permanent resident to form the business entity in their home state. However, for most businesses forming a company in Wyoming is also a great choice.

If privacy and anonymity are important to you, forming a Holding Company in a state like Wyoming may be a better choice. Holding Companies can choose their domicile as they are only considered as transacting business if they engage in activities beyond holding assets and leasing them.

For further information, click here.

Common choices for a holding company (a.k.a parent company) are Wyoming, Nevada, Delaware and New Mexico. Wyoming is currently the leading state to form a Holding Company (LLC or Corporation) due to the specific statutes, anonymity, asset protection and comparatively low fees.

Please click here to find out more.

In order to incorporate in Wyoming, you need to have a company name, business address, registered agent, share count, par value, and incorporator. These are the only requirements by law to establish a corporation.

For more information please click here.

Yes, as a non-U.S. person / Non-U.S. resident / International Entrepreneur / International Founder / Digital Nomad you can form an LLC or C-Corp in the United States. In fact, it is not even necessary to physically visit the U.S.A, as it is possible to set up your LLC or C-Corp online.

Please click here to find out more.

You don’t need an SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number) to get an Employer Identification Number (EIN) from the IRS. An Employer Identification Number (EIN), also known as a Federal Tax Identification Number or a Federal Business Tax ID, is used to identify a business entity not an individual. You only need an SSN (or ITIN) if you want to apply for an EIN online with the IRS.

We have business formation packages for Non-U.S. owner(s) that includes EIN application for a discounted fee of $150. You can also hire us to obtain your EIN from the IRS for a fee of $175.

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS) for individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security Number (SSN) from the Social Security Administration (SSA). ITINs are issued to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs.

The first step is to get an EIN from the IRS. You cannot open up a U.S. bank account without an EIN for your LLC or Corporation.

The easiest option is to opening up a business bank account online with a Fintech company like Mercury, Novel etc.

Another solution is to visit the United States yourself.

For other options and more information to open up a U.S. business bank account please click here.

Wyoming is a leading incorporation provider with low fees and no corporate income taxes. Delaware is generally only used by those raising venture capital or looking to go public.

For more information please click here.

How Triple B Business can help in starting your new company?

The fastest, easiest way to start your new company? Hire us and get everything you need: registered agent service, privacy, free mail forwarding, and the guidance of local experts.

We currently offer Business Formation Services only in the States of Wyoming and Delaware because these two great states offer multitude of advantages to new small business owners.

Here’s how you can start the process with Triple B Business today in 3 easy steps:


Tell Us Your Business Name

If you have already decided your new business name then simply enter it on our form. We will perform a free name search for you with the state.


Answer A Few Questions.

Answer a few questions and enter the required information on our business formation form. If we have any questions then we will get back to you.


We Will File Your Paperwork

We will complete your paperwork and be off to the races filing your new company with the state.

Don’t Wait

Contact Us For A Free Consultation