Your corporate domicile determines your tax rate, exposure to liabilities and what information is made public. These impact every area of your business and should not be taken lightly. Fortunately, companies have wide latitude when deciding where to domicile or establish their corporate nexus. Even those with significant assets and operations in other states stand to benefit from a Wyoming Corporation.
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Is a Wyoming Corporation right for you?
Wyoming Corporation Highlights
Our state lawmakers and Secretary of State have worked together to craft nation leading corporations. Benefits include but are not limited to:
Fees: We charge $199. This includes everything you need for the first year including being your registered agent. Future years cost $75 - $50 to the state and $25 for us to be your registered agent. That’s it.
Taxes: There are no state taxes on corporate income. Learn more about corporate taxes and fees here.
Flexibility: Everything can be handled online. We will incorporate your company the same day.
Asset Protection: The nation’s best asset protection. Including charging order protection.
Anonymity: Use our nominee service to keep your name off the public record. Only we will know the true beneficial owners. Learn about corporate privacy here.
Wyoming Corporation $199: You receive everything necessary to begin. We handle all Secretary of State filings and fees. You also receive a year of our registered agent service, 5 pieces of mail forwarding, corporate resolutions, bylaws and a share subscription agreement.
Custom Structures: Those with significant assets posing differing liabilities and/or operations in another state will find this package worthwhile. Through loans, leases, liens, royalties and management agreements you can reallocate revenue to Wyoming, and liabilities to companies without assets.
Example Uses of Wyoming Corporations
It is important to understand how the above benefits apply to your situation. The first two examples will focus on taxes with the last two incorporating asset protection. If you want to discuss your particular needs then please feel free to contact us. We are always available to speak.
Case 1: You run a location independent business such as an ecommerce store. Your company earns $30,000 its first year. You may incorporate in your home state and pay 6% taxes or do business in Wyoming and pay 0%. By choosing Wyoming you save $1,800 in taxes and probably pay less in fees as well.
Case 2: You own a salon which earns $50,000 and your home state has a tax rate of 7%. You form a second corporation in WY to hold assets. Through leasebacks, management contracts and other arrangements you flow $30,000 in profits to WY. Corporate taxes are reduced by $2,100 – not a bad return on couple hundred dollar investment.
Case 3: You own a small bed and breakfast which earns $80,000. You place assets in the WY company and divert half your profits to WY for a few years before bad luck strikes. A wayward employee injures a guest. Beyond the tax savings, your assets are held in a separate company from the one which will face the liability lawsuit. Regardless of the lawsuit’s outcome, your company avoids a catastrophic loss of assets and continues to operate as normal.
Case 4: A company generates more cash than is needed for living. Excess cash is funneled to a mixture of separate corporations, solo 401(k)s and asset protection trusts. When bad luck strikes creditors are deterred from pursuing you because your assets are not vulnerable to seizure. They elect to find their “payday” somewhere else.
Wyoming Corporations vs. Nevada and Delaware
Most will find themselves debating between incorporating in Wyoming, Delaware and Nevada. Which state you incorporate in ultimately depends on your business and goals. Wyoming is a good match for most, Delaware for some and Nevada for none.
In short, Delaware is wonderful for large corporations. For example, Fortune 500 companies and those looking to go public. Small and medium sized businesses, in contrast, will find the extra regulations burdensome and unnecessary. The extra fees are also a deterring factor. View a comparison of Delaware and Wyoming here.
Nevada was a popular alternative. Their corporations and laws are most similar to ours. However, they have repeatedly increased fees. The incorporation community has largely moved to Wyoming as a result. Why pay more for the same or in some cases even less? Additionally, Nevada corporations can be seen to have a stigma which Wyoming’s don’t. View a comparison of Nevada and Wyoming here.
Why our site and not others?
We offer the best intersection between what you pay and what you receive. That is a fancy way of saying we provide the best value.
You will receive much more than discount providers can offer. You will also pay much less than similar law firms. We have formed thousands of companies and have streamlined our processes. This is something we do everyday. These savings have been passed onto you.
Wyoming Corporation Benefits
Corporations benefit from enjoying wide-latitude when determining their corporate nexus. This decision should not be taken lightly as it partially determines liabilities, taxes, privacy among other things. Wyoming most commonly competes with Delaware for corporate domiciles. Nevada was previously popular, and their corporations are very similar to WY, but their fees have been consistently raised. This has left DE and WY to compete for new incorporations. We provide a short comparison of the states below, but for further reading we recommend you visit our page dedicated to the merits of WY vs. DE companies.
Wyoming Corporations benefit from the following properties:
No Taxes: Your income is not taxed at the state level.
Low Fees: We charge $199 to incorporate. Maintenance is $50 per year plus your registered agent. We charge $25 to be your agent.
Anonymous Ownership: Officers are not listed the first year. Afterwards, you may use our nominee service to protect your identity.
Asset Protection: The nation’s strongest charging order protection. Creditor’s cannot seize business assets to settle personal debts.
Reduced Administration: You are not required to keep a shareholder agreement or bylaws. Some states require you to keep one lodged in their state. Learn more about reducing administrative burdens via a Close Corporation here.
There are numerous other benefits from incorporating. These benefits are not unique to Wyoming though. They include but are not limited to:
Business creditors cannot seize personal assets. The company is its own legal entity. This is referred to as the corporate veil. It may only be pierced in cases where fraud is proven.
It is easier to raise capital with a corporation than an LLC or DBA.
Minority investors enjoy protection from tyrannies of the majority.
Low corporate taxes allow re-investment and compounding at preferential rates.
These benefits have turned the incorporation community’s focus to WY. If privacy is important, you may use a privately held corporation in our state to protect your identity in other states. This is done via a double LLC. Learn more about this technique here.
If avoiding taxes is your goal, then you may read about setting up a holding company here. We provide a thorough overview detailing how to allocate revenue to low tax jurisdictions via transfer pricing and other means. We also detail Wyoming corporate taxes and fees here.
Forming a company is a good first step towards smartly managing taxes and liabilities. It is not the only step though. We provides various asset protection strategies here – all of which we can help you with understanding and properly implementing. From asset protection trusts to solo 401(k) LLCs we can show you the path to protecting what you have worked so hard for.
Wyoming Corporation Privacy
Corporations at first glance do not provide the same privacy protections as Limited Liability Companies. Through the use of nominee’s, though, the two structures become functionally equivalent. This privacy, or anonymous ownership, is not limited to benefiting Wyoming companies. Through structuring one can extend these benefits to mask the ownership of companies formed in other states.
How do corporations and LLCs differ?
Corporations are not required to list officers or directors in their first year. When the first annual report comes due however an officer must be listed. This officer’s name goes into the public record and is viewable by anyone. Wyoming allows the use of nominee officers. These are also called “officers for a day”. The nominee’s purpose is to provide a public face to the company – thus protecting the true owners and operators from scrutiny.
You may use our nominee service for $150 per year. We will place our names on the record and protect your identity. That is the limit of our role and you do not lose any control or ownership of your company.
View our comparison of Delaware and WY Corporations here. We discuss not only privacy, but also taxes and fees.
What if your state doesn't allow anonymous ownership?
Only four states allow anonymous ownership of corporations. They are Delaware, Nevada, New Mexico and Wyoming. If you operate in a state outside of those then you will want to consider one of two options to shield your identity. The first option is to form a Wyoming company and to register it as a foreign corporation in the other state. This has the drawback of doubling your fees though – as you will have to pay both WY and the other state’s fees.
The second option is to utilize a double LLC structure. Many states allow the officer or owner of a company to be a second company. Florida for example allows this. What you would do in this instance is form your WY corporation first. Then you would form your next company. When the state asks you to list who owns or controls that corporation you list your Wyoming company. When someone searches the Wyoming company they find… our name. They cannot pierce the veil. You are further protected in virtue of the fact we are a law firm. Our interactions are thus protected by attorney-client privilege.
If privacy is important and you are operating on a limited budget, then we generally recommend an LLC for you. For a full comparison of LLCs and traditional C-Corporations visit this link.
Privacy is a right everybody has. You may choose what information you share with whom and when. There is no reason to make public information about you when you don’t have to. Especially when it opens you to attack from fortune seekers and lawsuit hunters. We also believe that displaying information in front of nosy neighbors and needy family members cannot benefit you. When we assist with estate planning we share stories of long lost family members who suddenly reappear when you inherit an estate. Your third cousin does not need to know what you own, nor does anyone else who finds the time to google your name.
We have covered Wyoming Corporation privacy and how to protect yourself. Whether you only operate in Wyoming or do business in other states. You have the ability to protect yourself and doing so is simple. There’s little reason not to exercise this right. If you have any questions about your particular situation then please reach out to us. We will find a solution which works for you and enables you to conduct your affairs securely.