Wyoming, a Great Place to Become a Small Business Owner
Wyoming is ideal for majority of business formations. Apart from the great asset protection benefits that Wyoming offers, the state also features a no state taxation. LLC and even corporate laws upheld in Wyoming are very business friendly and the state does not require decision makers and stakeholders like shareholders, managers, directors and officers to physically be present at meetings or even live in Wyoming. Wyoming even has laws that protect single members LLC through a key asset protection strategy called charging order procedure.
Excellent Asset Protection
LLCs that are based in Wyoming are greatly protected against lawsuits filed by plaintiff attorneys and creditors. Unlike other states, Wyoming made laws that protects even LLC with single members.
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. Privacy is highly respected in Wyoming.
Are Out-of-State Courts, like California Law, Allowed to be Applied to an LLC Created at Wyoming?
The protections that an owner and their LLC have depends on that state they are incorporate in. For example, in California, the state law may use a court order in selling the assets of the LLC 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.
If the LLC is established in a protection-friendly state like Wyoming, all that’s left to do is to register the business in California.
In the state of California, the court will order the LLC to sell certain assets for the overall benefit of the judgment creditor. Thus, the investment or business entity is considered as dissolved. Fortunately, the California court has no power over an LLC in Wyoming, this issue has raised a strong argument; LLCs formed in Wyoming are governed by the Wyoming law.
Where to Establish an LLC: Wyoming or Delaware?
Factors to Keep in Mind
By glancing at both Wyoming and Delaware, both seem like ideal states to set up an LLC. But upon closer inspection, every state hold advantages as well as disadvantages, heavily depending on the specific needs of a business.
Creating an LLC in Wyoming, even for small businesses, is a good choice. Filing fees make up only a small amount and the renewal fee, to be paid annually, is only $50. Not only that, that the LLCs established in Wyoming are not required by law to pay franchise taxes as well as state income; this a huge advantage for small and starting businesses.
Delaware, on the other hand, has recently increased some of their fees, which may seem like minimal to some but that minimal increase may discourage others from establishing an LLC in Delaware.