Bulgaria vs. Wyoming LLC: Which Company Is Truly Better?

Two options consistently come up when someone from Greece is looking for a company outside of Greece: Bulgaria with its 10% tax rate and Wyoming, USA, with its well-known LLC. On paper, both seem inexpensive. In practice, the difference isn't in the cost of formation but in what you pay annually to keep it alive.

Below, we lay out the real numbers for both options: fixed expenses, accounting, social security contributions, audits, taxes. No marketing fluff, just the amounts our clients actually see.

Among European alternatives, it's also worth considering company formation in Romania, especially when there's real activity, staff, or clientele in the country.

The Quick Answer

For the typical freelancer, consultant, e-commerce, or digital entrepreneur who doesn't plan to relocate, a Wyoming LLC is almost always cheaper and simpler than a Bulgarian EOOD. The reason isn't the tax rate. It's that Bulgaria puts you into a regime of permanent obligations (monthly accountant, mandatory manager contributions, balance sheet publication, potential audit) while a Wyoming LLC has a predictable annual cost.

Bulgaria makes sense in specific cases: if you are actually moving there, if you need a European VAT number for intra-community transactions with products, or if you have physical activity and staff in the country.

What You Really Pay in Bulgaria

The 10% corporate tax is the part that's advertised. It's also the smallest part of the equation for a small company. The fixed costs are what eat into the benefit.

Accounting: Monthly, Not Annually

An EOOD or OOD is legally required to keep double-entry books, which in Greece we called Category C books. There is no single-entry option for a capital company. This means a monthly accountant fee, not an annual declaration.

In practice, offices in Sofia charge approximately 80 to 250 euros per month, depending on the volume of documents, whether you are VAT registered, and if you have payroll. For a simple service company with VAT, a realistic range is 1,200 to 2,500 euros per year just for accounting.

Manager Social Security Contributions

This is where most people are surprised. The manager of a Bulgarian company who works for the company is considered self-insured and pays contributions even if the company makes no profit. Contributions are calculated based on a minimum insurable income set annually by the social security budget.

With current minimum thresholds, the annual cost of contributions for a manager typically ranges from 1,800 to 2,400 euros, without having received a salary. If you receive an actual salary, the amount increases proportionally. The exact rates and minimum income change annually, so always confirm current amounts with your accountant in Bulgaria or the National Revenue Agency.

Annual Balance Sheet and Publication

Every Bulgarian company prepares annual financial statements and publishes them in the Commercial Register. The cost of preparation and filing usually comes as an extra charge on top of the monthly fee, typically 150 to 400 euros. Delays incur penalties.

Mandatory Audit

An independent audit by a certified public accountant does not apply to all companies; it applies to those exceeding the size thresholds of Bulgarian accounting law (assets, net revenue, average number of staff). Most small companies do not meet these thresholds. However, when you do, we're talking about thousands of euros extra annually, and you usually discover this when the business starts doing well.

VAT and Quarterly Advance Payments

If you register for VAT, you have monthly declarations, VIES, and Intrastat where applicable. In parallel, the company is subject to advance tax payments within the fiscal year, meaning you pay tax before the year closes.

The Real Annual Total

Expense	Realistic Annual Cost
Accounting (monthly)	1,200 - 2,500 €
Manager social security contributions	1,800 - 2,400 €
Annual balance sheet and publication	150 - 400 €
Registered office, legal services, banking	300 - 700 €
Audit (only if you meet the thresholds)	2,000 € and up
Total without audit	3,500 - 6,000 €

And all this before tax even enters the picture. If you want a detailed breakdown of fixed costs, we have it in the article about the cost of a company in Bulgaria, while for the process and legal aspects, see company formation in Bulgaria.

What You Pay for a Wyoming LLC

The structure in Wyoming works in reverse. There's no monthly accountant, no manager contributions, no published balance sheet. There's an annual maintenance package and federal filings.

• State Income Tax: Wyoming does not impose income tax on companies or individuals.
• Federal: A single-member LLC with a non-US owner, no physical presence, and no income connected to US activity typically does not incur federal tax. However, it files informational returns, primarily Form 5472 along with a pro forma 1120.
• Accounting: Double-entry bookkeeping or publication of financial statements is not required. You need clear record-keeping, not an accounting department.
• Insurance: Owning the company does not create any contribution obligations.

With our package, the annual company maintenance is 1,200 euros and includes everything: annual report and state fees, registered agent, business license, federal filings, and accounting support. One number, no surprises at year-end. If you want to see exactly what's included and how to form an LLC in Wyoming, we have detailed information on our service page.

Side-by-Side Comparison

	Bulgaria (EOOD)	Wyoming LLC
Corporate Tax	10% on profits	0% state
Dividend Tax	5% withholding	No distribution with withholding for disregarded entity
Accounting	Mandatory double-entry, monthly	Simple record-keeping, no publication
Owner Contributions	Yes, even with zero profit	No
Financial Publication	Yes, in Commercial Register	No
Audit	Possible based on size thresholds	Not foreseen
Formation Time	2 to 4 weeks usually	24 to 72 hours
Realistic Annual Cost	€3,500 - €6,000	€1,200 all inclusive

Three Hidden Costs Not Included in Any Table

Beyond the euros, there's a cost in time and risk.

The language. Authorities, filings, and correspondence in Bulgaria are in Bulgarian. Every response to the Tax Office goes through your accountant, incurring time and fees. In the US structure, communication is in English and in much smaller volume.

Banks. Opening a corporate account in Bulgaria for non-residents is becoming increasingly demanding, with requests for proof of activity and often requiring physical presence. An LLC can open an account with US fintechs and banks remotely, with access to Stripe and PayPal US.

Closing. Liquidating a Bulgarian company is a months-long process involving publications and accounting closure. A Wyoming LLC closes with a simple dissolution filing, whenever you decide.

Where You Really Win: An Example

Consultant with 80,000 euros turnover and 15,000 euros expenses, meaning 65,000 profit.

Bulgaria: approximately 6,500 euros corporate tax, approximately 4,500 euros fixed costs and contributions, and if the money is distributed as dividends, another 5% on the remainder. Total burden close to 13,500 euros.

Wyoming: 1,200 euros annual maintenance. The tax burden shifts to where you are a tax resident, i.e., to your personal tax return, but without a second corporate level of tax, contributions, and accounting.

The difference is not a trick. It's that one structure has three levels of cost and the other has one.

The Warning You Must Read

No company outside Greece makes you invisible. If you live and manage from Greece, the place of effective management counts, and Greek tax law may consider the foreign company a tax resident of Greece. The same applies to Bulgaria, not just the US. The correct order is to first clarify your tax residency and then choose a structure. We analyze this in the guide for forming a company abroad.

When to Choose What

Choose Bulgaria if

• You are actually relocating and will become a tax resident of Bulgaria.
• You sell physical products within the EU and need an intra-community VAT ID.
• You will hire staff or have a warehouse and office there.

Choose a Wyoming LLC if

• You provide services, consulting, software, marketing, or have an online business.
• You get paid by clients outside Greece and want Stripe, PayPal, and a US bank account.
• You want predictable annual costs and minimal bureaucracy.
• You are building a holding structure for participations or assets, as we explain in Wyoming holding.

Frequently Asked Questions

Is Bulgaria's 10% really lower than Wyoming's? The rate is low, but the total cost is not. In Wyoming, the state tax is zero, so the comparison comes down to fixed costs: 3,500 to 6,000 euros versus 1,200 euros annually.

Do I pay social security contributions if I have a Wyoming LLC? Not from the company. Your social security obligations arise from the country where you are a resident and conduct your activity, not from owning a US LLC.

Does a Bulgarian company need a certified auditor? Only if it exceeds the size thresholds of Bulgarian accounting law. Small companies are usually exempt, but the cost appears exactly when you grow.

Can I get a European VAT number with an LLC? Yes, depending on your activities, you can obtain a European VAT number or register with the EU's OSS mechanism to charge VAT on sales to consumers within the Union.

How quickly is each formed? A Wyoming LLC typically takes 24 to 72 hours. A Bulgarian company requires notarization, capital deposit, and registration, typically taking two to four weeks.

Can I transfer operations from a Bulgarian company to an LLC? Yes. In practice, you open the new structure, gradually transfer contracts and payments, and properly close the Bulgarian company without leaving any open tax liabilities.

The Conclusion

Bulgaria isn't a bad choice; it's the wrong choice for the wrong profile. It makes sense when there's a real presence in the country. For anyone working remotely, invoicing internationally, and wanting to know in January what they'll pay in December, a Wyoming LLC is in a different league: an annual cost of 1,200 euros with everything included, compared to a system that sends you a bill every month.

The next step is simple: check out the packages and delivery times on the formation form and get started with the structure that fits your business model.

If you're considering other options outside of Greece, check out our guide on company formation abroad and our page on company formation in Dubai.