The numbers at a glance
| California | Wyoming | |
|---|---|---|
| Filing fee | $70 | $100 |
| Annual report | $20 (biennial) | $62 (annual) |
| Franchise tax min | $800 | $0 |
| Top state income tax | 13.3% | 0% |
| Privacy score | 3/10 | 9/10 |
| Banking accessibility | 9/10 | 8/10 |
| Standard processing | 14d | 1d |
| 5-year total cost | $4,420 | $660 |
On pure 5-year cost, Wyoming comes out ahead by $3,760. But cost is rarely the only factor.
When California wins
- Large market
- Strong banking ecosystem
- You physically operate in California — staying in-state avoids foreign-LLC qualification costs.
When Wyoming wins
- No state income tax
- Strongest charging-order protection
- Anonymous LLC allowed
- Low $62 annual fee
- Series LLC available
Hidden costs of forming in Wyoming from outside
If you live and operate in California but form in Wyoming, you almost always pay both states' annual fees because you must register as a foreign LLC in California. The advertised cost difference often disappears entirely once foreign qualification fees and dual registered agents are factored in.
Decision framework
- Operating in California? Form in California.
- Pure holding company or non-resident? Wyoming wins on cost and privacy.
- Raising VC money? Delaware C-Corp is the standard. California won't be accepted by most institutional investors.
See the full Wyoming guide for Wyoming-specific details, or jump to our 5-question quiz to get a personalized shortlist.