Quick Answer

For 95% of small business owners, e-commerce sellers, and online consultants, Wyoming is the better choice. Wyoming offers the same (or better) privacy protections as Nevada, but at a fraction of the cost. A Nevada LLC costs over $425 to set up and $350+ every year to maintain, while Wyoming costs $100 to set up and $60 minimum a year to maintain.

Key Points for 2026

  • Privacy: Both states allow anonymous LLCs, but Nevada requires an Initial List of Officers that can sometimes expose a manager's name if not structured carefully.
  • Taxes: Neither state has a personal or corporate income tax.
  • Asset Protection: Both states offer exceptional "Charging Order" protection for single-member LLCs.
  • Nevada's Commerce Tax: Nevada has a gross receipts tax on businesses grossing over $4 million; Wyoming does not.

Cost Comparison Breakdown

Wyoming LLC Costs

  • Initial Filing Fee: $100
  • State Business License: $0 (Not required at the state level)
  • Annual Report Fee: $60 minimum
  • Total First Year State Fees: $100
  • Ongoing Yearly State Fees: $60 minimum

Nevada LLC Costs

  • Initial Filing Fee: $75
  • Initial List of Officers: $150
  • State Business License: $200
  • Total First Year State Fees: $425
  • Ongoing Yearly State Fees: $350 ($150 Annual List + $200 Business License)
The Nevada Hype

Nevada heavily markets itself as the "Delaware of the West." While it has excellent corporate laws, the high annual fees make it an expensive trap for a solo entrepreneur who is just starting out and has $0 in revenue.

When Does Nevada Make Sense?

Nevada is an excellent state for large, high-risk physical operations. If you are building a casino, a massive manufacturing plant, or a high-liability local business inside the state of Nevada, the protection offered by Nevada's corporate veil is unmatched.

Additionally, Nevada has very strong protections for corporate officers and directors, making it difficult for creditors to sue managers personally for the debts of the business.

Example Scenario

The Situation: Mark lives in the UK and wants to open an Amazon FBA business. He wants privacy and low taxes.

Option A (Nevada): Mark forms in Nevada. He pays $425 upfront. Next year, he pays $350 to renew his license and list. He has spent nearly $800 in state fees over two years.

Option B (Wyoming): Mark forms in Wyoming. He pays $100 upfront. Next year, he pays $60 minimum. He has spent $162 over two years. His privacy and tax benefits are exactly the same as they would be in Nevada. Wyoming is the clear winner.

What to Do Next

  1. Choose Wyoming: Unless you have a specific physical reason to be in Nevada, default to Wyoming.
  2. Hire a Registered Agent: You will need a registered agent in whichever state you choose.
  3. Remember your home state: If you live in a state like California or New York, remember that forming an LLC in Wyoming does not excuse you from paying taxes in your home state where you actually work.