When registering a US company, choosing the right state is key. The right choice can significantly reduce annual maintenance costs and save on various state taxes. Selecting a state with the most favorable tax structure,rather than blindly following trends,means you start your business ahead from day one.

Among the 50 states, Colorado, Delaware, and California are often mentioned in the cross-border e-commerce industry and in the media. However, their tax burdens are not necessarily the most favorable. Many entrepreneurs, when first exploring US company registration, are drawn to the reputation of these states but overlook what truly impacts long-term operations: tax rates and ongoing maintenance costs. Choosing a state based solely on its popularity while ignoring actual tax obligations and annual fees often leads to unnecessary financial burdens right from the start.

In contrast, Wyoming has been gaining popularity among small businesses, cross-border e-commerce sellers, and overseas investors due to its no franchise tax, no state personal or corporate income tax, low annual fees, and strong privacy protection.

1. Key Advantages of Wyoming Company Registration

No Franchise Tax:Unlike Delaware, which charges a $300 annual franchise tax regardless of income or profit, or California, which imposes an $800 annual franchise tax even for companies with no revenue, Wyoming has no franchise tax at all.

Low Annual Fees & Maintenance Costs:The annual report fee for a Wyoming company is only about $60, with no hidden charges. By comparison, Delaware’s annual fees are higher, and California imposes additional state income taxes and local fees.

Strong Privacy Protection:Wyoming does not require public disclosure of shareholder or officer personal information, making it ideal for privacy-conscious entrepreneurs. Delaware and California, however, require certain information about officers and members to be listed in public state databases.

No State Personal or Corporate Income Tax:For LLCs, Wyoming uses a pass-through tax structure, where profits go directly to members without state-level corporate or personal income tax. California not only has personal income tax but also high corporate tax rates. Delaware, while having no sales tax, still levies corporate income tax and franchise tax.

2. Wyoming vs. Delaware: Costs and Suitability

Delaware’s main advantage lies in its mature commercial legal system and flexible corporate laws, making it suitable for large enterprises seeking investment or planning to go public.

However, for small businesses and cross-border e-commerce sellers, Delaware’s high franchise tax and maintenance costs can become a burden. Wyoming may not have the same capital market influence as Delaware, but it offers lower costs, stronger privacy, and simpler registration processes, making it ideal for quickly launching operations.

3. Wyoming vs. California: Taxes and Business Freedom

California has strong advantages for local market operations, but its tax burden is heavy. The $800 minimum annual franchise tax for LLCs is a significant cost for small businesses.

California also levies state income tax,up to 13.3%,which offers no direct benefit for companies engaged in cross-border or non-California-based operations. Wyoming eliminates these fixed high taxes, has no state income tax, and allows greater operational flexibility.

4. Why Overseas Entrepreneurs Prefer Wyoming

Simple Registration Process – No requirement for US residents, minimal documentation, and fast approval.

Cross-Border Friendly – No need for a physical office, ideal for e-commerce, consulting, and overseas investment.

Bank Account Accessibility – Wyoming companies can open accounts with major US banks, supporting international transactions.

5. Requirements for Registering a Wyoming Company

Wyoming imposes no nationality restrictions and no visa requirement, and shareholders do not need to be present in the U.S.

For individual shareholders – Passport or valid ID.For corporate shareholders – Business license.

Other details – Company name and business scope.Approval can be completed as quickly as the same day, with a full refund if unsuccessful.

If your business is in cross-border e-commerce, international trade, online services, or overseas investment, and your goals are to reduce maintenance costs, protect privacy, and simplify tax obligations, Wyoming is undoubtedly a top choice.

Compared with Delaware and California, Wyoming allows you to enjoy the credibility and convenience of a US company at a much lower cost, while avoiding high franchise taxes and complex state tax systems.

Before deciding on a US company registration location, consider your business model, future financing plans, and tax strategy. For most small and medium-sized businesses, Wyoming offers exceptional value.

Our One-Stop Wyoming Company Registration Services;Company Name Approval & Filing – From name verification to state filing, handled end-to-end.

Tax Planning & Consultation – Customized tax strategies for LLCs, C Corps, and S Corps to save costs.
Bank Account Setup & Ongoing Compliance – Assistance with US bank accounts, annual reports, and document maintenance.

📞 Contact Guansai Tax Services – Free one-on-one consultation with our U.S.-based accountants. Let our professional team help you register your Wyoming company quickly, cost-effectively, and compliantly,so your US business starts ahead from day one.