Wyoming LLCs

Do you need an attorney to create your LLC? Well, if you're not going to do it yourself, then there's little reason not to choose us. Our prices are competitive with discount providers, but you receive a whole lot more.

Laws governing Limited Liability Companies differ across states. This is why Wyoming is a popular destination for new LLCs even when so few live in the state. Wyoming was the first state to allow LLCs and continues to be at the forefront of corporate innovation.

What is a Limited Liability Company?

An LLC combines the flexibility of a partnership with the benefits of a corporation. Liability is limited and profits may either be taxed at the corporate level, or passed-through to the owner's individual tax returns. Find a comparison of LLCs to Corporations here, partnerships here, and sole-proprietorships here.

Wyoming LLC Benefits

Wyoming LLCs have quietly become the nation’s most attractive. These benefits arose from our legislature and Secretary of State working together with the express intent of crafting nation leading LLC laws. Small and medium sized companies are forming LLCs in Wyoming, over Nevada and Delaware, for the following reasons:

Fees: We charge $199 to form your LLC. Future years require a $50 payment to the state and $25 to us for being your registered. There are no hidden fees to worry about.

Anonymity: Only we know managers and members. Your identity is protected by attorney-client privilege.

No Taxes: Wyoming does not tax corporate or personal income.

Asset protection: Nation's strongest asset protection laws - including charging order protection for single member LLCs.

Bureaucracy: Reduced reporting requirements - plus single member LLCs and Close LLCs are allowed.

Simplicity: You only have to complete our order form and we handle the rest. No need to visit Wyoming or be a U.S. resident. We provide

Wyoming is known for having a frontier mentality. Our state’s culture can work to your benefit. We are strongly against taxes and fees, especially on businesses. The last fee increase was ten years ago. We also value our privacy. This is left over from the days when if I didn’t ask you about your business, you wouldn’t ask me about mine. Combine this with a large “rainy-day” fund, and we are unlikely to see drastic changes in the near future.

Wyoming LLC Fees

The First Year: Wyoming’s Secretary of State charges $102 to organize an LLConline. If you choose us, we charge $199 for everything. You will receive your LLC, first year of registered agent service and useful documents such as an operating agreement and organizational minutes.

You may form the LLC with Wyoming's Secretary of State website for $102 and use our registered agent service for $25, for a total of $127. Doing it this way, though, will place your name on the record as the company's organizer. Only form the LLC yourself if privacy IS NOT important to you.

Future Years: You will need to file an annual report and pay $50 (or $52 if you pay by credit card). You will also need a registered agent in Wyoming. Even those with Wyoming addresses should use a professional service. Read why here. Our fee is $25 per year – so $75 total.

These fees are low compared to Nevada and Delaware. Nevada has continuously raised fees over the previous decade. The last time a minimal raise was considered the WY Secretary of State dedicated its front page to admonishing the effort – and encouraged businesses to chime in. Needless to say, the raise did not go through the legislature.

Wyoming LLC Privacy

Wyoming LLCs are in part sought after due to their privacy laws. Keeping your affairs private is a right provided by the constitution and entirely justifiable.

Why broadcast your assets to the world when you don't have to? Nobody considers suing a homeless person because there is no pot at the end of the rainbow. The flip side is those who display their wealth make themselves a target.

Wyoming’s Secretary of State does not require managers or members to be listed with him. They only ask who organizes the LLC. That means our name and address will appear on the Articles of Organization. .

Wyoming also does not require you or the company to file a tax return. This means your information will never appear on a public database in the state of Wyoming. Also, since we handle payment, the money trail will end with us. We enter our payment information with the State. This keeps another potential piece of information from being compromised.

Nosy neighbors, needy family members and aggressive creditors will not be able to find your assets with a simple name search. This keeps you below your radar and functions as an additional form of asset protection. We have no issue with protecting your identity and encourage you to exercise this right. Keep in mind that retaining us provides the additional benefit of affording you attorney-client privilege.

Asset Protection

An LLC is legally separate from its owner(s). No owner is liable for debts incurred by the company. This is called the corporate veil. Wyoming also allows single-member LLCs –not every state does. Combine this with the nation’s strongest charging order protection and you have a powerful combination. The creation of multiple LLCs will segregate business assets from business liabilities. Ask us how today.

Examples of how a WY LLC can benefit you

Case Study 1: An individual runs an online business with yearly profits of $40,000. They live in Florida. They can incorporate there and pay 5.5% or $2,200 in taxes. Alternatively, they may choose Wyoming and pay $0.  

Case Study 2: A restaurant in Miami earns $100,000 and faces a $5,500 tax bill. One day an employee makes a bad decision. Insurance either fails to cover the whole bill or refuses to cover the liability at all. All the company’s assets are at risk – including the building if they own it.

Alternatively, they retain us. We help place your assets in a separate entity. Our structure makes the assets immune from seizure. The opposing side recognizes there is no “pay-day” and decides not to bring a lawsuit. You also save thousands in taxes, which is much less than you pay us.

Case Study 3: You own rental properties in South Carolina. We form a Wyoming LLC, solo 401(k) LLC and an asset protection trust. The contributions to your retirement fund are tax deductible. We then show you how to invest those proceeds back into your business. Those earnings are tax deferred as they compound. You place excess funds into a trust. You are protected by the laws governing LLCs, retirement accounts and trust funds.

In both cases, choosing Wyoming provides significant benefits which are available to upstarts and already established companies. These techniques are entirely legal and we are happy to assist you. It is never too late to engage in tax and risk management.

Wyoming LLC Taxes

Wyoming does not tax personal or corporate income. Many mistakenly believe this only benefits those who operate inside of WY - that is untrue. We can assist you with minimizing profits in your higher tax jurisdiction and moving them to WY where they will not be taxed. This is our expertise and something we have helped hundreds of clients do. Let us begin with a simple example and move onto more complex tax arrangements.

Wyoming vs. Nevada & Delaware

As we mentioned above, which state you choose depends upon your situation. However, we feel confident Wyoming offers benefits few other states even attempt to match. The other two states most commonly considered are DE and NV.

Delaware offers a wonderful set of benefits to large corporations, namely Fortune 500 and those looking to go public. They also have additional fees and administrative restrictions. The increased administration is not off putting for large companies with a lot of resources. Nor are the extra fees. Bank of America does not care if it pays $1,000 more a year. For small and medium sized businesses, though, the increased compliance cost, and fees, are major drawbacks. View a complete comparison of Wyoming and Delaware Corporations here.

Nevada LLCs are the most similar to Wyoming. However, they are significantly more expensive. View a complete analysis of Wyoming and Nevada LLCs here..

Reasons to Start a Limited Liability Company (LLC) Vs. A Corporation

Reporting

The ongoing reports that are required by federal and state government is extremely tedious to complete when an organization is set up as a corporation. There are quarterly financial reports that need be completed for the IRS. Your board of directors also has to have at least one meeting per year, with minutes taken and kept in a file, documenting these meetings. This must be done in order to keep your status as a corporation. Some of this can avoided using a Close Corporation, but neither corporation is as simple as an LLC.

Double Taxation

Taxation is one of the major challenges that face corporations today, especially if they are small businesses. If a corporation decides to issue shares to shareholders and a profit (dividends) is paid to the owners on those shares, then the organization will have to pay taxes on the profits. There is then a second form of taxation for corporate owners. This is the personal tax that they will have to pay because they received profits individually. With an LLC the owners only pay taxes once on their personal income no matter how much revenue or profits the organization achieved. Additionally, corporations have to pay quarterly FICA and Social Security taxes for each of their employees.

Privacy

Corporations are required to list an officer with the Secretary of State. Anonymity can be achieved through a nominee officer, but there is an additional fee for this.

Adding Management Team Members

With a Corporation adding new executive team members (president, vices president, treasurer, secretary, etc.) can be quite a challenge because Board of Directors has to be involved in the decision-making on new management. The more people you have in the decision-making the longer the hiring process will take. With an LLC, management team members can select whomever they like without the approval of a board. LLC's are not required to have a board of directors to select executive staff.

Daily Operations

LLC's can operate more fluidly than corporations because they don't have multiple layers of management. In a corporate structure management team members have to get approval from the board of directors before they can finalize a decision. Those who choose the corporate form of a business entity have to seek board guidance on major decisions, and in some cases minor decisions. This can make the day-to-day management very tedious. LLC's do not need board approval to make decisions. They simply corroborate with each other and move forward on decisions from that point.

Limited Liability Companies (LLCs) Vs. Limited Partnerships (LPs): Their Strengths and Weaknesses

Limited Liability Companies (LLCs) and Limited Partnerships (LPs) are two extremely effective and well established business entities. Both boast flexible structures, enabling you the ability govern your company the way you want to. Each provide you the power to dole out obligations, maintain a healthy standard of care, and define your business terms with ease. Although sharing many qualities, LLCs and LPs are far from the same thing and one may be a better pick for your business than the other.

Personal liability is the most significant difference between an LLC and an LP. A Limited Partnership may have one, or several general partners that take charge of routine management within the business. With this responsibility comes a limitless amount of managerial liability, thus these general partners may be responsible for paying off debts and performing business duties.

A limited partner, however, has protection against having any personal liability. This entity cannot be entrusted with a significant amount of say within the company's management. In case of a lawsuit, if the court finds that the limited partner has acted as a manager, it will be tried as a general partner and the partner may take upon its neck the yoke of the company's liability. In order to safeguard from this ever happening, a Limited Liability Company may become a general partner with an LP. This type of partnership, though, will add cost, a degree of complexity and possibly some painful tax repercussions.

The LLC retains the elastic nature of the partnership, while providing protection from the dangers of personal liability. If the Limited Liability Company is properly formed, members will not be held accountable for any of the company's liabilities. Their only liability is their investment. LLC members can be corporations, individuals, or even other LLCs and there is no restrictions on how many members you can have. LLCs and Limited Partnerships are both exempt from federal income tax and it is the responsibility of the investor to declare its own income tax each year.

Advantage of LLPs and LLCs

There are advantages and disadvantages to each type of business entity. When comparing the LLP (limited liability partnership) and the LLC (limited liability company), one advantage stands out from the rest. The partner has added protection from the actions of other partners.

In a general partnership, all partners may be held liable for the actions of their fellow partners. This limited liability partnership provides some protection for the partner for extraordinary actions of the other partners.

Such extraordinary acts might include: errors, negligence, or incompetence. The liability from these types of actions can be devastating; this form of entity grants some protection in this area much like you receive from organizing as a corporation.

This LLP selection is very popular among professions in which legal liability can be extremely high. Some professions who may choose this type of investment are accountants, architects, or doctors.

One caveat of the LLP is that you HAVE to have more than one person involved in the organization. You cannot have an LLP in your own name. However, the LLC can be created in Wyoming with just one member.

One advantage of a single member LLC is that you can still file your tax return as normal, placing your LLC activity in your personal 1040. The biggest benefits of an LLP and an LLC are liability protection. If you get sued for doing something within your business life, all that can be collected against is your business assets. In addition, if you are sued on a personal level (like for a car accident) your business assets cannot be collected.

What are the advantages versus a sole-proprietorship?

  1. Limitation of liability.
  2. Ability to classify payments as dividends rather than salary. Thus avoiding self-employment taxes.
  3. Increased professionality.

You should retain a legal or tax expert for the reporting requirements specific to your situation.

Important Reading:

Operating Agreements

Buy/Sell Agreements

Single Member LLC Information

Rules to keep in mind

Additional Corporate Services

Registered Agent: We will be your agent for only $25 per year. Your first year is free if we form your company. The service includes five pieces of free mail forwarding per year.

Mail Forwarding: We offer daily, weekly, monthly and quarterly mail forwarding services. Choose the package which best fits your needs.

Virtual Offices: Allow us to manage your office in Wyoming. We will handle the mail, provide a phone number and a commercial lease agreement.

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