Benefits of Forming an LLC in Wyoming
Wyoming is definitely an ideal state for business formation. 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. A key protection strategy called the charging order procedure protects single member LLCs at Wyoming.
Terrific Asset Protection
Wyoming LLC owners are protected from certain lawsuits filed by plaintiff attorneys and creditors. Unlike other states, Wyoming made laws that protects even LLC with single members.
Maintains the Utmost Privacy
The declaration of the names of managers and members of any LLC is not requires in the state of Wyoming even on their state public database. Privacy is highly respected in Wyoming.
Can Courts from Other States Apply California Law to LLCs Under the State of Wyoming?
The protection that an owner of an LLC has greatly depends on the exact state that they incorporate with. Like in California, a state law can have the court issue an order whereby the LLC sells its assets in order 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.
When the LLC is set up in Wyoming, a protection-friendly state, all that’s left to process is the registration of the business in Caifornia.
When the courts in the state of California orders the LLC to sell their assets for, ultimately, the benefit of the creditor. In the end, the investment or business entity is necessarily 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.
Where to Establish an LLC: Wyoming or Delaware?
Factors to Keep in Mind
At an initial glance, Wyoming and Delaware both seem like business-friendly locations. But upon closer inspection, every state hold advantages as well as disadvantages, heavily depending on the specific needs of a business.
Forming an LLC in Wyoming is a beneficial choice, even for small business owners. Filing fees make up only a small amount and the renewal fee, to be paid annually, is only $50. In addition to that, LLC in Wyoming are not required to pay franchise taxes or even state income, which is an amazing benefits for small 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.