Key Takeaways:
Wyoming LLC formations overtook every U.S. state except Delaware since 2015, per a16z data published February 27.
The "cowboy cocktail" combines asset protection, privacy, and no state income tax into the most business-friendly LLC structure in the country.
Kraken will sponsor federally seeded Trump Accounts for every Wyoming newborn in 2026, deepening crypto's presence in the state.
On Thursday, a16z published data showing Wyoming LLC formations took off around 2015 and have since overtaken every state except Delaware.
The driver is what Wyoming calls the cowboy cocktail: asset protection, no state income tax, charging order protections for LLC members, and a privacy framework that does not require public disclosure of ownership.
For crypto, the appeal goes further. Wyoming was the first state to legally recognize decentralized autonomous organizations and created the Special Purpose Depository Institution framework that lets digital asset companies operate as banks. Kraken became the first SPDI under Wyoming law and moved its global headquarters to Cheyenne.
On February 16, Kraken announced it would sponsor Trump Accounts for every child born in Wyoming in 2026. Senator Cynthia Lummis delivered the news to the legislature. Trump Accounts are federally seeded $1,000 savings plans for children born between 2025 and 2028.
Delaware still leads total corporate formations and gained share through 2025. But for LLCs specifically, the Wyoming trend line is hard to argue with. The DExit narrative is more nuanced than headlines suggest, but the data is clear on one thing: for the entity type that startups, crypto companies, and asset-protection seekers actually use, Wyoming is winning.
The state also hosts a DUNA framework for decentralized nonprofits, giving blockchain-native organizations formal legal recognition with on-chain governance.
People Also Ask
Q: Why are so many companies forming LLCs in Wyoming? A: Wyoming offers no state income tax, strong asset protection, member privacy, and business-friendly courts, a structure marketed as the "cowboy cocktail."
Q: What is a Wyoming DUNA? A: A Decentralized Unincorporated Nonprofit Association, a legal structure Wyoming created in 2024 giving blockchain-based nonprofits formal recognition and on-chain governance authority.
Q: Is Wyoming replacing Delaware for business formation? A: Not entirely. Delaware still leads total formations, but Wyoming has overtaken every other state for LLCs since 2015.
Q: What are Trump Accounts? A: Federally seeded $1,000 savings plans for children born between 2025 and 2028. Kraken will sponsor the accounts for Wyoming newborns in 2026.