NFT Creators: Wyoming LLC and Crypto Tax Reality

NFT creators face a confusing tax and legal picture. The IRS treats NFTs as property. Wyoming has digital asset-friendly law. Banking is hard. Here is the honest picture for non-resident NFT issuers using Wyoming LLCs.

Answer

Wyoming LLC fits NFT creators because Wyoming has the friendliest US digital asset law (2019 framework). NFT mint revenue from non-resident owners typically does not create US Effectively Connected Income, so zero US federal income tax on operating revenue. Banking is the challenge: Mercury rejects pure NFT issuers at higher rates (~50%). Wise Business at 95% acceptance handles the fiat side. Coinbase Commerce handles direct crypto payments.

By Zawwad, Founder & CEO, WyomingLLC by Topslice LLC.

Last updated May 20, 2026

Wyoming's digital asset framework

Wyoming was the first US state to recognize digital assets as property (2019 framework). It also wrote the first US DAO LLC statute (2021). So if you run an NFT project, the state legal climate is purpose-built for your operations. Other states (Delaware, Nevada) treat NFTs under generic property law without the same clarity.

How NFT mint revenue is taxed for non-residents

NFT mint revenue is generally not US Effectively Connected Income for a non-resident pass-through LLC. Selling NFTs to a global audience from outside the US, without US employees or US office, typically does not create a US trade or business. So US federal income tax on mint revenue is typically zero.

Secondary marketplace royalties (OpenSea, Blur)

Royalties from secondary sales are treated similarly. Non-resident pass-through LLCs typically owe no US federal income tax. The royalty income flows through to your home country tax return.

Banking for NFT projects

Pure NFT issuers face tightened review at most US banks. Mercury rejects ~50% of NFT projects. Relay similar. Wise Business at ~95% is the safety net. For direct crypto payments (ETH, USDC, BTC), Coinbase Commerce or BitPay work without traditional bank involvement.

Form 5472 for crypto-heavy operations

Mandatory annually regardless of crypto vs fiat revenue mix. Reportable transactions include capital contributions (you depositing ETH into the LLC wallet), owner draws (withdrawing crypto to personal wallet), and loans. Operating revenue from unrelated buyers is not on Form 5472 but reported on the pro forma 1120 cover.

Frequently asked questions

Should NFT projects pick Wyoming or Delaware?

Wyoming for digital asset law specifically. Delaware is fine but does not have the same crypto-friendly statutory framework.

Will Mercury approve my NFT marketplace?

~50% in our intake. Better than nothing but not reliable. Wise primary, Coinbase Commerce for crypto.

How do I file Form 5472 if I am mostly crypto-denominated?

Track each receipt in USD-denominated terms at receipt-time exchange rate. Owner draws (ETH transferred to your wallet) report on Form 5472 Part IV/V at USD value at transfer time.

Should I form a DAO LLC instead?

Only if governance is genuinely on-chain. For most NFT projects, regular Wyoming LLC works and can be converted to DAO LLC later.