Do I Need a Delaware LLC?

Usually not, if you own the LLC alone and sell online. Delaware is a strong choice for companies raising venture capital, and those usually form a Delaware corporation, not an LLC. A single-owner LLC can be formed in any state; what matters more is where the business actually operates and what each state charges every year.

Mostly for reasons that matter to investor-backed companies: Delaware's business law is widely used, its Court of Chancery specialises in business disputes, and investors and lawyers are used to Delaware documents. For a small LLC with one owner and no investors, the US$400 annual LLC tax (due June 1, with no proration) usually buys little that a cheaper state would not.

Yes, each year. Wyoming's annual license tax starts at US$60, and Montana's 2027 report costs US$0 if filed between 1 January and 15 April, against Delaware's US$400. Montana has waived its annual report fee each year since 2024 and has already announced the waiver for reports filed 1 January to 15 April 2027. It is a yearly decision, not a permanent change, so check before each 15 April deadline. To form, Montana is US$35, Wyoming US$100 and Delaware US$110. The difference is privacy: Wyoming, like Delaware, does not list members in its public filings, while Montana's articles and annual reports list managers or members with addresses.

If the business has an office, staff or property in a US state, start with that state, because it will generally have to register there anyway. If not, pick on yearly cost and privacy: Wyoming is a common choice; Missouri and Ohio have no yearly report at all. See the full 10-state comparison.

Both are possible, and both cost something. Some states let an LLC convert or transfer to another state when both states allow it; otherwise you form a new LLC and close the old one, which means a final Form 5472 and pro forma 1120, a new EIN and Delaware's tax for the year you close. Compare those one-off costs with the yearly saving before deciding. If you close, see how to close a US LLC properly.

Not your federal filings. A foreign-owned single-member LLC files a pro forma Form 1120 with Form 5472 for years with owner transactions, whichever state it is in. State income tax depends on where the income is earned, not where the LLC was formed, though states like Wyoming and South Dakota have no income tax at all.

Not completely. Neither lists members in its public filings, but the IRS knows the owner from the EIN application and Form 5472, your bank verifies you, and your registered agent knows who you are. US-formed companies no longer file BOI reports with FinCEN.

Three parts. The state's own fee or tax (for example Delaware US$400, Wyoming from US$60, Missouri and Ohio no yearly report). A registered agent with an address in the state, usually a private provider's yearly fee. And the federal filings: Form 5472 with a pro forma Form 1120 for years with owner transactions, and the BE-13 Claim for Exemption within 45 days of forming. Our annual compliance service can handle the filings for you; ask us for a quote.