Wyoming is a state that foreign entrepreneurs often choose for an LLC. It levies no income tax on companies or individuals, and its state fees are low and clearly set.
What Wyoming offers
No state income tax
Wyoming levies no state income tax on companies or individuals.
Low, clear state fees
The annual fee is set at a fixed minimum; see the exact figure below.
Privacy from the public
The formation document does not list the owners. It states the name, registered agent, addresses and the person signing the document.
Simple upkeep
One annual report with a license tax is filed each year. Because the state has no income tax, there is no state income tax return.
State fees
Figures from the official state websites (as of November 2026). Rates change, so we always check the current rules before forming. These are state fees only — our services are not included.
Due date: the first day of the month in which the company was formed. If not paid within 60 days after the due date, the company may be dissolved.
Is US income tax paid? When it is not
For an LLC owned by a foreign person: if all the conditions below are met, you generally pay no US income tax — only state fees and filing obligations. If even one condition is not met, tax may arise.
Conditions (all must apply at once)
- 1It is an LLC with a single owner who is neither a US citizen nor a US tax resident.
- 2The business is genuinely carried out outside the USA — no office, employees or activity in the USA.
- 3Income comes from services or sales outside the USA, not from US sources (for example, US dividends, interest or royalties are subject to withholding tax, by default 30%).
- 4The company has no tax obligations in another US state (for example because of sales to customers in a particular state).
Obligations that apply even without tax
- A US tax number (EIN).
- Annual filing of Form 5472 together with a pro forma Form 1120 with the IRS for a foreign-owned LLC — failure to file can bring a $25,000 penalty per failure.
- The annual fee and obligations to the state (see above) and a registered agent in the state.
- Tax obligations in your own country: a tax resident of your country may be taxed on income of a US company as well. A US LLC is therefore not a way to avoid taxes at home.
A corporation is a different case
A US corporation (C-Corp) is itself a taxpayer and pays federal corporate income tax, currently 21%. The rule “only state fees are paid” therefore does not apply to it. It suits mainly companies with investors.
Who Wyoming suits
LLCs for freelancers, consultants, online businesses and smaller companies that operate outside the USA and do not need investors.
Wyoming or Delaware?
For a simple LLC without investors, Wyoming is cheaper to maintain (at least $60 a year versus $400 in Delaware). Delaware is chosen when investors or partners require it, or when you plan a corporation.
See DelawareOfficial sources
- Wyoming Secretary of State — Business Fee Schedule
- Wyoming Secretary of State — LLC Articles of Organization (instructions)
- Wyoming Business Council — Business Resources
- IRS — Instructions for Form 5472
- IRS — Taxation of nonresident aliens
- IRS — Publication 542, Corporations
The information is general in nature and does not replace legal or tax advice.
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