Forming an LLC in the state of Wyoming
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. 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. Wyoming even has laws that protect single members LLC through a key asset protection strategy called charging order procedure.
Terrific Asset Protection
LLCs that are based in Wyoming are greatly protected against lawsuits filed by plaintiff attorneys and creditors. Single member LLC are even protected by Wyoming’s laws, unlike other states.
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.
Could Out-of-State Courts Apply California Law to LLC Under Wyoming?
Protection that owners have alongside their LLC, highly depend on the state that they incorporate with. For example, in California, the state law may use a court order in selling the assets of the LLC to benefit the creditor. The said court order leads to a judicial dissolution, otherwise known as the corporate death penalty, and the subsequent termination of the LLC.
By setting up the LLC in a protection-friendly state, like Wyoming for example, all that’s left to do is to register in California.
When the courts in California orders the LLC to sell the assets for the benefits of the judgment creditor. By doing so, the investment or business entity is dissolved. LLCs in Wyoming cannot be ruled by California courts, this is a strong argument because generally, an LLC established in Wyoming is governed by the laws of Wyoming.
Wyoming or Delaware: Where to Form an LLC
Things to Consider
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. The fee for filing the small business is considerably small and the subsequent renewal fee is only $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.
Meanwhile, Delaware has increased various fees which may seem like a small increase to some but it can persuade a potential owner from forming an LLC in Delaware.