Benefits of Forming an LLC in Wyoming
Wyoming is definitely an ideal state for business formation. Apart from the great asset protection benefits that Wyoming offers, the state also features a no state taxation. Wyoming doesn’t require their stakeholders, like officers, directors, managers and shareholders, and key company decision makers to hold meeting or live in the state in order to enjoy their business friendly corporate and LLC laws. Single member LLCs are also protected by laws in Wyoming through charging order procedures.
Outstanding Asset Protection
LLCs governed by the state of Wyoming are protected from lawsuits issued by plaintiff attorneys and creditors. Single member LLC are even protected by Wyoming’s laws, unlike other states.
Maintains the Utmost Privacy
Revealing the names of the members of managers of any LLC is not required in the state of Wyoming even on any state public database. Wyoming respects the privacy of their LLCs and corporations.
Are Out-of-State Courts, like California Law, Allowed to be Applied to an LLC Created at Wyoming?
The protection that an owner of an LLC has greatly depends on the exact state that they incorporate with. One example is when California allows their court to issue an order to sell the assets of an LLC in order to benefit the creditor. Judicial dissolution is the subsequent result of the court order, at times called the corporate death penalty, which leads to the LLC’s termination.
When the LLC is set up in Wyoming, a protection-friendly state, all that’s left to process is the registration of the business in Caifornia.
In the state of California, the court will order the LLC to sell certain assets for the overall benefit of the judgment creditor. By doing so, the investment or business entity is dissolved. The power of the California court over a Wyoming LLC raised strong and valid arguments but ultimately, an LLC formed in Wyoming will be governed by Wyoming laws.
Wyoming or Delaware: Where to Form an LLC
Things to Consider
At first glance, Wyoming and Delaware are great states to establish an LLC since they seem business-friendly. A closer look will reveal each advantage and disadvantage of a state which will be based on the needs of a business.
Establishing an LLC in Wyoming is a good choice, even for small businesses. The initial filing fee for setting up an LLC in Wyoming is relatively small and annual fees only add up to $50. On top of all those benefits, the LLCs in Wyoming are not required by Wyoming law to pay franchise taxes and income taxes; this is a huge advantages for businesses that are small or have only just started operating.
On the other hand, Delaware has recently increased numerous fees, which could greatly impact the decision of a potential owner to establish their business there.