Head-to-head snapshot
| Metric | Delaware | Wyoming | Montana |
|---|---|---|---|
| Filing fee | $110 | $100 | $35 |
| Annual fee | $300 franchise | $60 | $20 |
| State income tax | 8.7% (LLC pass-through) | 0% | 0% (LLC pass-through) |
| Sales tax | 0% | 4% | 0% |
| Privacy | Members public? No | High privacy | Members public? No |
| Banking odds (non-resident) | High | Highest | Medium |
| Best for | VC-track founders | Non-resident default | Vehicle registrations, low-fee ops |
When Delaware wins
Choose Delaware if you plan to convert to a C-Corp within 24 months for US venture funding, if your investors ask for it, or if you operate a complex multi-member ownership structure that benefits from Chancery Court.
When Wyoming wins
Choose Wyoming if you are a non-resident with no US physical operations. Cheap, private, easy to bank, easy to close if you ever need to.
When Montana wins
Montana is a niche pick popular for exotic-vehicle registration and founders who value very low ongoing fees combined with zero sales tax. It's not the strongest choice for a typical operating business — banking is thinner.
Our final recommendation
For 90% of non-resident founders, Wyoming. Delaware is worth its premium only if venture capital is genuinely on the roadmap.
Frequently asked questions
Yes, via a process called domestication. Cost: $500–$1,500 plus the destination state's filing fee.