Wyoming Sole Proprietorship vs LLC:
Fees, Taxes, and Decision Guide (2026)
Wyoming has strong LLC statutes, genuine privacy features (no member names in public records), and low fees. It is worth forming there if you live in Wyoming. For residents of other states, the math usually does not add up.
$100
LLC filing fee
$60/yr
Annual licence fee (minimum)
$0
Wyoming state income tax
No
Members listed in public record
Wyoming's Genuine Advantages
Charging order protection
Wyoming provides strong charging order protection for single-member LLCs. A creditor who gets a judgment against you cannot seize your LLC membership interest -- they can only get a charging order against future distributions.
Privacy (no member disclosure)
Wyoming does not require LLC member names to be filed in public records. Only the registered agent and organizer appear. For owners who value privacy, this is a genuine differentiator.
No state income tax
Wyoming has no state income tax, same as Florida and Texas. If you actually live and operate in Wyoming, this is a real benefit for all business owners.
Low annual fee
The annual licence fee is $60 minimum (or $0.0002 per dollar of assets in Wyoming, whichever is greater). This is among the lowest in the country for residents.
The Out-of-State Math: Why It Usually Does Not Work
Most marketing for "Wyoming LLCs" targets residents of high-cost states like California or New York. The pitch: pay Wyoming's low fees instead of your home state's high fees. The reality:
Example: California resident forming in Wyoming
When Wyoming formation makes sense for non-residents
Privacy-priority owners with a genuine need for member anonymity (Wyoming + a registered agent keeps your name out of public records in most states). Asset protection attorneys sometimes recommend Wyoming charging order protections for specific situations.
When it clearly does not make sense
For a California or New York sole proprietor turning into an LLC, Wyoming formation adds $100-$300/year in costs with no benefit relative to a home-state LLC. The charging order protection only applies to Wyoming assets, not California assets.