State Comparison Guide

🏛️ Delaware vs 🌲 Washington for LLC

Which state is better for your US LLC? We break down filing fees, taxes, privacy, and annual requirements so you can decide with confidence.

🏛️ $90
Delaware Filing Fee
🌲 $200
Washington Filing Fee
$50/yr
Delaware Annual Cost
$60/yr
Washington Annual Cost

Delaware vs Washington: Side-by-Side Comparison

All costs and requirements for a LLC in 2026.

Criteria🏛️ Delaware🌲 Washington
Filing Fee$90 ✓ Winner$200
Annual Fee$50/yr ✓ Winner$60/yr
State Income TaxNo (non-residents) No income tax
Privacy LevelModerate Low ✓ Winner
Processing Time1–5 days 1–5 days
Franchise TaxYes (min $50/yr) B&O tax (varies)
Best ForStartups seeking VC, C-Corps Tech companies (Amazon/Microsoft ecosystem), Pacific Rim trade
Delaware

🏛️ Delaware

The Startup Capital of the World

✓ Pros

  • 65%+ of Fortune 500 incorporated here
  • Court of Chancery (no jury trials)
  • Internationally recognised by investors
  • Strong corporate law precedent

✗ Cons

  • Annual franchise tax
  • Requires registered agent
  • Complex franchise tax calc for large companies
Best for: Startups seeking VC C-Corps Tech companies
Washington

🌲 Washington

Tech Giant Territory

✓ Pros

  • No personal state income tax
  • Amazon/Microsoft/Boeing HQ state
  • Strong Pacific Rim trade connections
  • No franchise tax

✗ Cons

  • Business & Occupation (B&O) tax on gross receipts
  • High cost of living
  • $200 filing fee
Best for: Tech companies (Amazon/Microsoft ecosystem) Pacific Rim trade E-commerce

Which Should You Choose?

Choose Delaware if…

  • You're building a startups seeking vc
  • You're building a c-corps
  • You're building a tech companies

Choose Washington if…

  • You're building a tech companies (amazon/microsoft ecosystem)
  • You're building a pacific rim trade
  • You're building a e-commerce

Not sure? Use our AI State Selector

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Frequently Asked Questions

Is Delaware or Washington better for a LLC?

It depends on your business type and goals. Delaware is better for startups seeking vc, while Washington is preferred for tech companies (amazon/microsoft ecosystem). Use the AI State Selector for a personalized recommendation.

Can I form a LLC in Delaware or Washington as a non-US resident?

Yes — both states allow non-US residents to form a LLC remotely. You'll need to hire a registered agent and obtain an EIN (Employer Identification Number) from the IRS.

How long does formation take in each state?

Delaware: 1–5 days. Washington: 1–5 days. Expedited processing is often available for an additional fee.

Do I pay taxes in Delaware or Washington if I don't live there?

State taxes generally apply based on where business activity occurs ("nexus"), not where you formed. If you have no employees, office, or customers in the formation state, you typically won't owe state income taxes there. Consult a CPA for your specific situation.

⚠️ Disclaimer: This page is for informational purposes only and does not constitute legal, tax, or financial advice. Laws change — verify current fees and requirements with official state sources before filing. Consult a licensed attorney or CPA for advice specific to your situation. USLaunchStack is an AI-powered information platform, not a law firm.

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