Forming an LLC in Nevada Versus Wyoming

Question:

Answer:

Nevada has traditionally been popular for LLC formation due to its business-friendly environment and lack of state income tax. However, in recent years, it has become significantly more expensive compared to alternatives like Wyoming. Here, we will compare the costs involved in forming an LLC in Nevada and Wyoming.

Nevada LLC Costs and Requirements:

• Initial Filing Fees: $425 total — includes a $75 Articles of Organization fee, $125 Initial List of Managers/Members, and a $200 Business License Fee.
• Annual Costs: $350 per year — $150 for the Annual List of Managers/Members and $200 for the Business License renewal.
• Registered Agent: You’ll need a Nevada Registered Agent, typically costing $100–$150/year.
• No State Income Tax: Nevada imposes no state income, corporate, or franchise taxes.
• Gross Receipts Tax: For businesses whose annual gross receipts are $4,000,000 or higher, Nevada imposes a gross receipts tax which ranges from 0.05% to 0.3%, based on the business category.

Wyoming LLC Costs and Requirements:

• Initial Filing Fees: $102 flat fee for the Articles of Organization.
• Annual Costs: As low as $62/year — Wyoming charges an annual report fee based on your assets located within the state (minimum $62).
• Registered Agent: Also required, with similar fees to Nevada ($100–$150/year).
• No State Income Tax: Wyoming imposes no state income, corporate, or franchise taxes.
• No Annual Business License Fee: This is a key differentiator — unlike Nevada, Wyoming does not require an annual renewal of your business license.

Bottom Line:

While both states offer no state income tax and strong privacy protection for LLC owners, Nevada has essentially priced itself out of the market for many small or online-based businesses. Unless you have a specific reason to operate from Nevada, Wyoming offers virtually the same benefits with far lower startup and maintenance costs.