If you are a non-resident of the United States and are considering incorporating a business there, Delaware and Wyoming are often the top options. Both states offer unique benefits, but which one is best for your needs? In this article, we will provide a comprehensive comparison between incorporating a company in Delaware and Wyoming for non-residents, focusing on the legal, tax, and administrative aspects.
1. Initial and annual costs
Delaware
Filing Fee: It's about $90.
Annual taxes (Franchise Tax): Delaware imposes an annual franchise tax starting at $250.
Registered Agent Fees: It ranges from $100 to $300 per year.
Wyoming
Filing Fee: It's about $100.
Annual taxes (Franchise Tax): Wyoming does not impose an annual franchise tax.
Registered Agent Fees: It ranges from $50 to $150 per year.
Conclusion: If you're looking to cut costs, Wyoming offers a more economical option.
2. Taxes and tax benefits
Delaware
Corporate Income Tax: Delaware imposes a corporate income tax rate of 8.7%.
Franchise Tax: It is imposed on companies and varies depending on the type and structure of the company.
Other taxes: Delaware does not impose a sales tax or personal property tax.Nomad Capitalist
Wyoming
Corporate Income Tax: Wyoming does not impose a corporate income tax.
Franchise Tax: Wyoming does not impose a franchise tax.
Other taxes: Wyoming does not impose a personal property tax.
Conclusion: Wyoming offers a more favorable tax environment, especially for small and medium-sized businesses.
3. Privacy and asset protection
Delaware
Privacy: Delaware requires disclosure of the names of a company's directors and officers.
Asset Protection: Delaware offers an advanced legal system for asset protection, particularly through the Court of Chancery.
Wyoming
Privacy: Wyoming allows corporations to be formed without revealing the names of members or directors.
Asset Protection: Wyoming offers strong asset protection, especially for single-member corporations.
Conclusion: If privacy is a priority, Wyoming offers a higher level of confidentiality.
4. Legal system and flexibility
Delaware
Legal system: Delaware is famous for its Court of Chancery, a court that specializes in corporate cases and provides quick and reliable decisions.
Flexibility: Delaware offers a high degree of flexibility in corporate structuring, making it a favorite for large corporations and investors.
Wyoming
Legal system: While Wyoming does not have a specialized court like Delaware, its laws are clear and straightforward.
Flexibility: Wyoming offers good flexibility, especially for small and medium-sized businesses.
Conclusion: Delaware offers a more sophisticated legal system, making it a favorite for companies dealing with investors or planning an IPO.
5. Ease of establishment and management
Delaware
Establishment: It is easy to form a Delaware company online.
Management: Delaware requires annual reporting and payment of franchise taxes.
Wyoming
Establishment: It is easy to form a business in Wyoming online.
Management: Wyoming requires simple annual reporting and does not impose franchise taxes.
Conclusion: Wyoming offers a simpler incorporation and management process, making it suitable for entrepreneurs who prefer simple procedures.
Conclusion
Standard | Delaware | Wyoming |
---|---|---|
costs | higher | less |
taxes | Income and privilege tax | No income or franchise taxes |
Privacy | less | higher |
legal system | Sophisticated and suitable for large companies | Simple and suitable for small and medium businesses |
Ease of establishment and management | Good but with more requirements | Excellent with fewer requirements |
Final Recommendation
✅ If you are a foreigner (non-resident in America) and want to establish a company for the purpose of e-commerce, providing remote services, or even freelancing, and you are looking for the lowest costs with the highest level of privacy, Wyoming is the best option for you.
However, if your project is large, and you plan to bring in investors in the future, list the company on the stock exchange, or have complex legal requirements, Delaware will be a very professional choice thanks to the Court of Chancery and its reputation in the business world.
6. Can foreigners establish a company in Delaware or Wyoming without a physical presence in the US?
Yes, ✅ any non-US person can establish a company in the United States without requiring a physical presence there, whether in Delaware or Wyoming. This is one of the strongest advantages of US companies, specifically:
A Limited Liability Company (LLC) or a Corporation can be opened.
You do not need a Social Security Number (SSN) to form a business, only later to obtain an EIN (Tax Identification Number).
You can manage your entire company from anywhere in the world.
7. The difference between LLC and Corporation for residents outside the US
Item | LLC | Corporation (C-Corp) |
---|---|---|
taxes | Pass-through taxation | Double Tax |
Flexibility in management | Flexible and easy | You need a formal board of directors. |
Best for small entrepreneurs | ✅ Yes | ❌ Unless there are huge investment plans |
Most suitable for foreigners | ✅ Excellent | It could be more complicated. |
LLC In Wyoming, it is considered one of the cheapest and simplest solutions for establishing a company in America for foreigners.
8. Steps for establishing a company in Wyoming or Delaware for non-residents
Choosing a company name (Company Name) and make sure it is available.
Specify the type of companyMost foreigners choose LLC.
Contract with Registered Agent (Registered Agent) within the state.
Submitting the Articles of Organization form Online.
Obtaining an EIN from the IRS (Federal Tax Identification Number).
Opening a US bank account for the company (Possible remotely with some banks like Mercury).
Get a virtual US address (Optional for documents and invoices).
9. Comparison of the most popular company registration services for non-residents
Service | Initial cost | EIN included? | Includes a bank account? | Support for foreigners? | Privacy |
---|---|---|---|---|---|
Stripe Atlas | 500$ | ✅ | ✅ | ✅ | ❌ |
Firstbase.io | 399$ | ✅ | ✅ | ✅ | ❌ |
Ghayat Ltd (Ghayat) | Only $350 | ✅ | ✅ | ✅ ✅ ✅ | ✅ |
Important noteOur company Ghayat Ghayat Ltd We offer a comprehensive and guaranteed company formation service in the US (Wyoming or Delaware) at a very competitive price, including:
Full establishment within 5 working days
Get an EIN without an SSN
Open a virtual US bank account (such as Mercury or Relay)
Providing free legal and tax consultations for the first month
Company documents in PDF format, ready to print
Contact us now directly on WhatsApp: Click here
10. Do you need a physical address or a visa?
❌ You do not need a residence visa or physical presence in the US. ✅ You can use a virtual address to receive official mail and bills.
11. Can the company be used to receive funds from Stripe, PayPal, and Amazon?
Yes, it's easy. When you establish your company in Wyoming or Delaware, you'll get:
A Official (Tax Number)
Legal incorporation contract
American address
US bank account
These conditions meet the requirements of payment platforms such as:
Stripe (You will need a US address and official email)
PayPal Business (With bank account link)
Amazon FBA and Shopify and Etsy
12. Frequently Asked Questions (FAQ)
Is the company considered American even if I am a non-resident?
Yes, your company is 100% American and officially registered in federal and state registries.
Do I need a US accountant?
Not always, but if you start earning a high income from the US, it's a good idea to hire a US accountant to help you file your annual tax returns.
How long does it take to get started?
Only 3 to 7 working days.
Can I use a different business name (DBA)?
Yes, it is possible to register a DBA with a trade name different from the original company name.
Establishing a company in the US is a smart move for any non-resident who wants to expand their business online or build a professional global business.
To save yourself time, effort and legal complexity, let our company “Ghayat Ghayat Ltd” Helping you from start to finish, step by step.
Our prices are competitive, our service is fast, and your privacy is guaranteed!
Feel free to contact us on WhatsApp: 05372851589
Or from here: https://wa.me/90537285158