Wyoming beats Delaware on privacy and asset protection for most individual owners, but Delaware remains dominant for any entity that will take on investors or institutional partners, because fund managers and VCs have standardized their documents around Delaware law.
Wyoming LLC
Wyoming is the strongest onshore US LLC for privacy and asset protection. There is no public disclosure of members or managers, charging order protection is single-remedy only (creditors cannot foreclose on your membership interest), and the state imposes no income tax. Formation runs roughly $100 to $200 in state fees, with a $60 annual report fee thereafter. It fits US residents who want a low-cost, high-privacy domestic entity for holding assets, operating a business, or layering under a foreign trust structure.
Delaware LLC
Delaware wins on legal infrastructure, not privacy. Its Court of Chancery has centuries of corporate case law, which matters when you are raising institutional capital, attracting VC money, or structuring complex multi-member operating agreements that will face scrutiny. Formation costs around $90 in state fees, but the $300 annual franchise tax and Delaware's thinner privacy protections compared to Wyoming make it a worse choice for pure asset protection. Delaware LLCs are the default for US startups and fund structures because investors and banks recognize them, not because they protect owners.
BVI Business Company
A BVI company is the offshore workhorse for international holding structures, IP holding, and asset segregation outside the US tax net. There is no public register of beneficial owners accessible to the general public, no corporate income tax in the BVI, and shares can be issued in any currency with no minimum capital requirement. Formation through a registered agent typically costs $1,500 to $3,000 all-in for year one, with annual renewal fees of roughly $1,000 to $1,800 depending on authorized share capital. The BVI works best as a holding layer above operating entities or below a Cayman fund structure, not as a standalone entity for US persons, who still owe IRS reporting on foreign entities. For structures that include a nominee layer, see Nominee Director Services: How They Work, What They Cost, and Where to Use Them for a breakdown of what that adds to the cost and what it actually accomplishes.
How These Structures Layer Together
The real power is not picking one structure, it is stacking them. A common configuration for a non-US resident entrepreneur is a BVI holding company owning a Wyoming LLC that holds US real estate or a US bank account, with a foreign trust sitting above the BVI entity. This separates liability at each layer, complicates creditor tracing, and keeps beneficial ownership out of any single public registry. For US persons, every foreign entity adds IRS reporting obligations (Forms 5471, 8865, or 8832 depending on classification), so the compliance cost of layering is real and should be priced in before the structure is built.
Things people ask first.
Can a non-US person form a Wyoming LLC?
Yes. Non-US residents can form and own a Wyoming LLC with no restriction. The LLC will generally be treated as a disregarded entity or partnership for US tax purposes, and the owner's tax obligations depend on whether the LLC earns US-source income.
Is Wyoming LLC really anonymous?
Wyoming does not require member or manager names in any public filing, and you can use a registered agent as the organizer. However, a US bank account will require KYC documentation, and IRS filings will capture beneficial ownership. Anonymous from the public record, not from regulators.
What is the main reason to choose BVI over Wyoming?
BVI is the right choice when you need an entity outside US jurisdiction entirely, particularly for holding non-US assets, signing international contracts, or sitting above other foreign entities. Wyoming only makes sense when you need a US entity or a US bank account.
Does a Wyoming LLC protect against US lawsuits?
Wyoming's charging order protection means a judgment creditor cannot seize your LLC membership interest or force a distribution. It is considered one of the strongest single-remedy states in the US, but it is not bulletproof against fraudulent transfer claims or piercing where an owner commingles funds.
How does Delaware compare to Wyoming for a single-member LLC?
For a single-member LLC with no outside investors, Wyoming is generally superior. Delaware's advantages (court system, investor familiarity) are irrelevant when there is only one member, and Wyoming's privacy and asset protection laws are stronger.
What IRS forms does a BVI company trigger for a US person?
A US person owning a BVI company will typically need to file Form 5471 if it is treated as a controlled foreign corporation, or Form 8832 if electing entity classification. FinCEN FBAR filing may also apply if the entity holds foreign financial accounts. Compliance costs for a single BVI entity run $1,000 to $3,000 per year in US accounting fees at minimum.
Which structure is right for your specific situation?
The Offshore Playbook walks through exactly how Wyoming LLCs, BVI companies, and offshore holding structures connect across jurisdictions, with real cost breakdowns and sequencing for building a multi-layer setup that holds up. gramps.chat can answer your specific structure questions directly.
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