Wyoming incorporation, no doubt, has become the top choice of many real estate investors, entrepreneurs, large companies, and even consultants nationwide. Some of the advantages of forming an LLC or corporation in Wyoming are:
LLCs and Wyoming Corporations are known for being too complicated to pierce the “corporate veil.” This delineates that it is exceedingly difficult for attorneys and other entities to go after the owners, officers, shareholders, or director of the companies’ personal assets through a lawsuit, which only happened to a very few cases in recent history.
In other states, the “corporate veil” is constantly pierced in many lawsuits, thus the members of the company put their houses, cars, and other valuable properties in line. For the most part, simply administering a Wyoming LLC or corporation will be sufficient to inhibit a lawsuit.
- No personal income tax, franchise tax, or business income tax.
- A very pro-business environment without the usual information sharing agreement with the IRS.
- No regulations requiring the directors, officer, and members of the company to be residents of Wyoming or US citizens toform a Wyoming corporation.
- Few annual requirements.
The company only needs to:
- File yearly or annual list/state business license.
- Have a registered agent residing in Wyoming.
Despite the advantages linked to Wyoming Incorporation, there is, however, several misleading or incorrect information concerning the incorporation process. In reality:
- Unless you are a resident of Wyoming or you have satisfactorily set up a “nexus” in Wyoming, you will most likely need to “foreign qualify” your business in the state where you are essentially running your business.
- Foreign qualifying your business in the particular state where you are operating your business will possibly subject you to similar amount of fees and taxes as if you establish the company there.
- This does not eliminate the fact that there are many benefits associated in doing the steps on how to incorporate in Wyoming even if you are required to foreign qualify. You just have to become aware of the truth prior to starting the incorporation procedure. In some instances, it may be most advantageous to set up “nexus” though this is best conferred with a tax advisor or an attorney.
- You don’t need a college degree
Majority of the business owners do the incorporating in Wyoming due to the following reasons:
- Prestige– The reputation of Wyoming of being bullet-proof from lawsuits can be menacing to lawyers who take advantage of perky lawsuits or would like to go after the personal assets of the officers, directors, or owners of the company.
- Protection– Most companies look at the liability protection of Wyoming worthy of any additional expenditure of obtaining nexus or foreign qualification. This is specifically true if they operate in an industry that is highly at risk and inclined to lawsuits such as fireworks’ production.
- Expediency– Since Wyoming has multiple partners in other states, the company owners can elect a Wyoming entity to establish as a “corporate headquarter” which will be permanent, instead of moving the business from one state to another. This Wyoming incorporation feature eradicates the need to recurrently form and close companies in other states.
- These laws are enshrined by their congress and unlikely to change!
- Strong Chamber of Commerce representation!