Delaware or Wyoming for an Indian founder building a SaaS startup?

Delaware. If there's any chance of raising US VC funding, default to Delaware. The few hundred dollars saved in Wyoming franchise tax don't justify the friction of re-domesticating later when a VC requires Delaware.

Is Wyoming really cheaper than Delaware?

Yes for low-revenue holding companies — $60/year vs $400+ for Delaware. But Delaware's flexibility, court system, and VC-familiarity often outweigh the cost difference for operating businesses.

Can I switch from Wyoming to Delaware later?

Yes, via 're-domestication' or 'conversion' — but it's not free (legal fees $5k-$15k + Delaware fees) and creates some tax complexity. Better to pick right the first time.

Does Wyoming offer better privacy than Delaware?

Yes — Wyoming doesn't require director/officer disclosure to the state; Delaware lists directors publicly. For privacy-conscious founders this matters; for VC-fundable startups it doesn't.

Which state do US VCs prefer?

Delaware, overwhelmingly. ~80% of US-listed companies and ~95% of YC-batch startups incorporate in Delaware. VCs are familiar with Delaware's General Corporation Law and Court of Chancery.

Are Delaware franchise taxes really that high?

Only if you authorise too many shares. Default Delaware C-Corp with 1,500 par-value shares → $400/year minimum. Authorise 10M+ shares → easily $5,000+. We help set authorised capital right at filing to avoid this.

← All US Incorporation

State comparison

Delaware vs Wyoming

Delaware vs Wyoming — the two most popular US states for foreign founders. Here's the unfiltered comparison: when to pick Delaware, when Wyoming wins, and why most VCs still prefer Delaware.

Side-by-side

Detailed comparison.

All the criteria that matter to foreign founders choosing a US state for incorporation.

Criterion	Delaware	Wyoming
Best for	VC-backed startups, expecting outside equity	Bootstrap, holding companies, privacy-focused
State corporate tax	8.7% (only on Delaware-source income; foreign income exempt)	0% — no state corporate tax
Personal income tax	0% on out-of-state income for non-residents	0%
Annual franchise tax	$400 (min) to $200,000 (max) for C-Corp	$60 (min) — among the lowest in US
Privacy	Director names public; shareholders not	Strong — no director/officer disclosure required
Court system	Court of Chancery — most experienced in business law	Standard state court — less developed business case law
VC investor familiarity	Highest — default for VC-backed startups	Lower — VCs may push for re-domestication
Stripe / Brex / Mercury support	Yes (default)	Yes
QSBS (Section 1202) eligibility	Yes — same as any US state	Yes
Recommended for	VC-fundable startups, traditional SaaS	Single-owner LLCs, holding companies, privacy-conscious

Get help

Ready to incorporate?

Talk to a CA about your state choice.

Email WhatsApp