Wyoming vs Nevada: Side-by-Side Comparison
Here's a comprehensive comparison of the two states across all key factors for non-resident LLC formation:
| Feature | Wyoming | Nevada |
|---|---|---|
| Income Tax | None | None |
| Corporate Tax | None | None |
| Sales Tax | 4% | 6.85% |
| Annual Fee | $60 | $350 |
| Formation Fee | $100 | $75 |
| Privacy | No member/manager disclosure | No member/manager disclosure, no IRS sharing |
| Court System | Standard state courts | Standard state courts |
| Asset Protection | Strongest (invented LLC, single-member protection) | Strong (single-member protection) |
| Best For | Non-resident LLCs, asset protection, cost-conscious entrepreneurs | Privacy-focused businesses, no-tax entities |
Tax Comparison
Wyoming Taxes
- Personal Income Tax: None
- Corporate Tax: None
- Sales Tax: 4%
Nevada Taxes
- Personal Income Tax: None
- Corporate Tax: None
- Sales Tax: 6.85%
For non-resident entrepreneurs with single-member LLCs treated as disregarded entities, state income tax typically only applies if you have income sourced within that state. If you have no in-state operations, employees, or customers, state income tax may not apply regardless of which state you form in.
Formation & Annual Costs
| Cost | Wyoming | Nevada |
|---|---|---|
| Formation Fee | $100 | $75 |
| Annual Fee | $60 | $350 |
| Registered Agent (est.) | $100–$300/year | $100–$300/year |
| Estimated Year 1 Total | $310 (with RA) | $575 (with RA) |
Privacy & Asset Protection
Wyoming
- Privacy: No member/manager disclosure
- Asset Protection: Strongest (invented LLC, single-member protection)
- Court System: Standard state courts
Nevada
- Privacy: No member/manager disclosure, no IRS sharing
- Asset Protection: Strong (single-member protection)
- Court System: Standard state courts
The Verdict: Wyoming or Nevada?
Both offer zero income tax, zero corporate tax, and strong privacy. Wyoming wins on cost ($60/year vs $350/year) and asset protection (strongest LLC laws in the nation). Nevada has a slight edge in privacy due to no IRS information sharing agreement. For most non-resident entrepreneurs, Wyoming is the better choice — it's nearly 6x cheaper annually with equal or better protections.
Our Recommendation
Wyoming for most non-resident entrepreneurs (lower cost, stronger protections)
Remember that regardless of which state you form your LLC in, your federal tax obligations remain the same. All foreign-owned single-member LLCs must file Form 5472 and a pro forma Form 1120 annually, with a $25,000 penalty for non-compliance.
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