Delaware: The Traditional Choice
Delaware dominates as the incorporation standard. More than 66% of Fortune 500 companies are incorporated in Delaware due to its specialized Court of Chancery and over 200 years of established corporate law precedent.
The state's legal framework appeals to venture-backed companies. Delaware incorporation is frequently required by institutional investors and necessary for IPO pursuits. The Division of Corporations processes applications efficiently, sometimes completing registrations within one hour for expedited service.
However, costs accumulate through annual franchise taxes ($175-$400 minimum, scaling with authorized shares), registered agent fees, and foreign corporation registrations in other states where you operate.
Wyoming: The Privacy-Focused Alternative
Wyoming presents a cost-effective, privacy-conscious option. The state mandates no corporate income tax or franchise tax, with a flat $60 annual report fee. Critically, shareholders, directors, and officers aren't required to be listed in public filings, protecting ownership privacy.
Wyoming's LLC framework rivals Delaware's, featuring single-member LLC flexibility and robust charging order protections that shield assets from creditors. The jurisdiction has pioneered blockchain and stablecoin legislation, making it attractive for digital asset businesses.
Internet-native companies and bootstrapped startups benefit from Wyoming's reduced overhead and administrative simplicity compared to Delaware's complex requirements.
Cost Comparison
Formation expenses differ significantly:
Legal Framework Comparison
Delaware Advantages
Court of Chancery: Specialized business court with expert judges (no juries)
Extensive case law: 200+ years of predictable legal precedents
Investor familiarity: VCs and institutional investors prefer Delaware
Flexible corporate law: Broad freedom in structuring governance
Wyoming Advantages
Privacy protections: No public disclosure of owners/officers
Asset protection: Strong charging order protections for LLCs
Crypto-friendly: First state to recognize DAOs and establish stablecoin frameworks
Low overhead: Minimal ongoing compliance costs
Which Should You Choose?
Select Delaware if:
Pursuing institutional venture capital funding
Planning for public offerings or major acquisitions
Requiring traditional legal credibility with established partners
Operating in industries where Delaware is the standard
Select Wyoming if:
Bootstrapped or self-funded operations
Privacy is a priority for ownership structure
Running an online-first or stablecoin-focused business
Minimizing costs and administrative overhead
Operating a DAO or blockchain-native entity
The StableCorp Advantage
At StableCorp, we help founders make this decision based on their specific circumstances. Our AI analyzes your business model, funding plans, and operational needs to recommend the optimal jurisdiction.
For many internet-native businesses, Wyoming offers compelling advantages. But for those pursuing traditional VC funding or planning for acquisitions, Delaware remains the gold standard.
Whatever you choose, StableCorp handles the entire process—from formation to ongoing compliance.