The Wild West LLC Standoff Between Wyoming and Nevada...And Where Texas and Florida Stand

Good Morning!

1. Feature: The Wild West LLC Standoff Between Wyoming and Nevada…And Where Texas and Florida Stand (5 min read)

2. From the Archive: Who Can Own Your LLC—and What It Can Own.
   Read it here.

Thursday is here, plenty of time to get more done.

-TCoL

Missed our last feature article? Opening a Brokerage Account for Your LLC: A Practical Guide. Read it here.

If you’re a Florida or Texas investor managing multiple LLCs, you’ve likely heard the buzz about Wyoming and Nevada. High-profile moves like Elon Musk reincorporating Neuralink in Nevada in 2024, and Andreessen Horowitz shifting to Nevada in 2025, have pushed these western states into the spotlight. Texas, too, has gained traction as a business-friendly state, especially for those relocating or expanding operations. Florida, for the most part, has always been pro-business.

Should you go West for your next LLC? This guide compares Wyoming, Nevada, Texas, and Florida on cost, regulation, taxes, privacy, and practicality, plus one overlooked reason you might consider an out-of-state LLC: name availability.

Why People Are Leaving Delaware (and Why It Matters to You)

Delaware has long been the gold standard for incorporations, thanks to predictable laws and its famed Chancery Court. But recent rulings like the one voiding Musk’s $56 billion Tesla pay package in 2024, sparked criticism and fueled talk of “less predictable” decisions. Musk publicly recommended incorporating in Nevada or Texas, and his companies followed through. Andreessen Horowitz cited similar concerns when it announced its Nevada move in July 2025.

For Florida and Texas investors, this isn’t about fleeing Delaware. It’s about whether out-of-state LLCs offer tangible benefits that justify higher costs and complexity.

Cost Comparison: Initial and Ongoing Fees

For investors forming multiple LLCs, cost is often the deciding factor.

For holding companies or low-revenue rental LLCs, Wyoming is cheapest long-term. Florida is a close second. Texas can be cost-effective if you stay under its franchise tax threshold. Nevada is consistently the most expensive.

Ease of Formation and Regulation

• Florida–Straightforward filings, but public record laws are broad.

• Texas–Simple online formation, no annual report for most small LLCs. Series LLCs are permitted but less common for real estate.

• Wyoming–Minimal paperwork, no operating agreement required (though strongly recommended). Remote-friendly.

• Nevada–Requires an initial list of managers and a State business license, adding steps and cost.

Leader: Wyoming for sheer simplicity, followed by Texas if you already have Texas ties.

Taxes: No State Income Tax But Watch the Extras

There are nuances:

• Florida–No franchise tax; standard annual report only.

• Texas–No personal income tax, but the Franchise (Margin) Tax applies above $2.47M gross receipts.

• Wyoming–No franchise or business tax. Annual report fee acts as a minimal license tax.

• Nevada–No income tax, but Commerce Tax applies above $4M in Nevada-sourced revenue.

Generally, these differences are negligible unless you’re scaling past seven figures in revenue.

Privacy and Anonymity

Privacy can deter frivolous lawsuits and keep your name off public databases.

• Wyoming–Best-in-class anonymity. No member or manager disclosure required.

• Nevada–Strong privacy; managers are disclosed on the initial list.

• Texas–Managers or members publicly listed. Minimal privacy.

• Florida–Public disclosure of managers and members required.

Winner: Wyoming, with Nevada close behind.

Court Access and Asset Protection

• Wyoming–Strong charging order protection. Creditors can only place a lien on distributions.

• Nevada–Similar strong protection, historically marketed to high-risk industries.

• Texas & Florida–Charging order protection exists but is less consistently tested.

If your portfolio exceeds $1M or involves commercial properties, this extra protection might justify the cost. For basic rental holdings, Texas and Florida’s protections are typically adequate.

Practicality for Florida-Based Owners

Forming out of state adds steps and recurring costs:

1. Foreign Qualification–Register the out-of-state LLC as a foreign LLC in Florida ($125 initial + $138.75 annual).

2. Registered Agents–Required in both states ($100–200/year each). Unless you are your own registered agent in one of the states. See our article: Should You Be The Registered Agent Of Your LLC?

3. Extra Paperwork–Two annual reports instead of one.

Added Cost: Expect $200–500 per LLC annually beyond a pure Florida setup.

Name Availability, The Overlooked Factor

One practical reason to look west? Name availability. Florida and Texas often reject common or desirable LLC names due to stricter naming conflicts. Wyoming and Nevada offer broader acceptance, letting you secure consistent branding across multiple properties or ventures. Need “Florida” or “Lone Star” in your name? It is likely available in Wyoming or Nevada!

The Takeaway

• Choose Florida if you want minimal cost and easy compliance.

• Choose Texas if you’re expanding operations there (but note public disclosures).

• Choose Wyoming if privacy, simplicity, and low-cost matter, then WYO is ideal for multiple LLCs.

• Choose Nevada if litigation risk is high, you value its court system, or you’re aligning with the Musk trend.

The hype around Wyoming and Nevada is real but so are the extra costs. For many Florida and Texas investors, start with one “Western” LLC to test the waters before shifting your entire portfolio.

Always consult a knowledgeable attorney or CPA before making the leap.

Have an interesting business question and need a free bit of advice? Send your question to [email protected]. No confidential info, please!