I get this question asked ALL THE TIME (especially from my non-US clients).
If you’re a U.S. resident, you should definitely form your LLC in the state where you’re physically located.
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However, if you’re not physically located in the U.S. and won’t be doing business in the U.S. then you have a choice of where you can form your LLC… in this case, I definitely recommend forming your LLC in Wyoming.
Short answer: you should register your LLC in the state where you are doing business (the state where you have a physical presence). For example, if you will be operating your business in California, then we should register your LLC in California.
However, if you are not planning to have a physical presence in the US (meaning that you will be operating solely from OUTSIDE the US), then we should form your LLC in Wyoming, the best and cheapest state for non-US residents.
Wyoming LLCs offer the best asset protection laws, no state or capital gain taxes, very low annual fees of $50, anonymous ownership (member names are not disclosed) and very foreigner-friendly laws. Benefits such as these, combined with my personal service, make Wyoming the best state for doing business for non-US residents.
If you have any questions, email me at [email protected]
Why Choosing a Domestic LLC Makes Sense For a U.S. Resident
For someone residing in the United States, choosing a domestic LLC is largely about convenience. Ever heard the saying: “there’s no place like home?”
If you are establishing some sort of retail business, it just makes sense for you to form your LLC in your home state.
If you – instead – decide to file a foreign LLC, you have to register and pay certain filing fees to go with that decision. Moreover, you must also read up on state and local laws as you will be required to follow them for the state you form in.
There’s a lot of extra paperwork associated with living in one state and forming an LLC in another. In most cases, it’s just easier to file domestic.
Wyoming is the Best Choice for Non-U.S. Residents
If you ask Google to form your LLC, you will be presented with three choices: Nevada, Delaware, and Wyoming.
It is commonly recognized today that, and can all be called “incorporation friendly” states due to their corporative laws, relatively low fees, and limited or nonexistent state-level taxation. However, how would a person choose between the three? Should you even form your LLC in these 3 states?
As I discussed above, you should register your LLC in the state where you are doing business (the state where you have a physical presence). For example, if you will be operating your business in California, then we should register your LLC in California.
However, if you are not planning to have a physical presence in the US (meaning that you will be operating solely from OUTSIDE the US), then we should form your LLC in Wyoming, the best and cheapest state for non-US residents.
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You may even find information suggesting Delaware and Nevada are the best choices. Unfortunately, this is not true.
In fact, there are 5 key reasons why Wyoming makes the best choice:
- For starters, you don’t need a U.S. citizenship to set up an LLC in the state of Wyoming. You don’t even need a U.S. mailing address.
- The annual fees to set up an LLC in Wyoming ($50) are cheaper than Nevada ($400) and Delaware ($300). As you know, starting up a new business is expensive. Any opportunity to save money is one you should take advantage of.
- You can keep a low profile and maintain your privacy thanks to the anonymous ownership in the state of Wyoming.
- You don’t have to worry about capital, state, of corporate gains taxes.
- Lastly, setting up an LLC in Wyoming is headache-free. It is a smooth and simple process.
In general, Delaware, through its developed legal system and laws protecting shareholder rights, is geared toward the large complex public corporations, whereas Nevada and Wyoming are more attractive to the small privately held corporations and LLCs. Delaware law tends to protect the rights of boards of directors and shareholders, while Nevada and Wyoming tend to favor management.
Delaware has a great body of corporate case law lasting 110 years about such matters as management and shareholder issues and mergers & acquisitions, and that’s precisely why the Fortune 500 is drawn to this state. Delaware laws tend to be “pro-management” when it comes to minority shareholder disputes.
So if you are aiming to grow your company to become a Fortune 500 company, Delaware’s case law offers many insights into what you can and cannot do, and what the likely consequences may be.
Unfortunately, Delaware also has a corporate income tax, personal income tax, a state franchise tax, reporting requirements and regulations compelling disclosure of substantial amounts of information resulting in far less privacy for you (all huge disadvantages). That makes Wyoming much more attractive for small privately-owned businesses.
How Do You Establish a Non-US LLC in Wyoming?
The process of setting up an LLC in the state of Wyoming is the same regardless of if you do or do not live in the United States.
Wyoming LLC Name Search
One of the more fun parts of the process is naming the business. You do, however, need to search the name on the Wyoming Secretary of State’s website to make sure it is available.
Wyoming Registered Agent
A Wyoming registered agent is an individual in charge of receiving all office mail and services on behalf of your company.
State law requires you to have a registered agent and they must reside within the state of Wyoming.
In theory, you do have the option of listing a relative or a friend living in the state as an agent. You, however, would be giving that person access to your private business information.
Your registered agent is responsible for accepting documents on behalf of the company. So, this needs to be someone you trust as well as someone who is qualified to handle the job.
You can contact me at [email protected] for questions on setting up a registered agent.
How to Get EIN for Wyoming LLC
In order for you to do business inside of the United States, you must have an Employer Identification Number (EIN).
Benefits of Wyoming LLC
The state of Wyoming is a tax haven for business owners. It offers a lot of the same benefits as the same as Nevada including no franchise or business taxes.
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The annual renewal fee of your business license in the state of Nevada is also extremely affordable.
Another major benefit the state of Wyoming offers that Nevada does not is the lifetime proxy. Basically, this is a person you can elect to vote in your place.
This lifetime proxy allows you to hide your identity while still controlling your vote in the company.
The unfortunate truth is a lot of people overlook Wyoming for the state of Nevada because Nevada is a more appealing place to be.
As the capital of entertainment, the state of Nevada has a lot going for it.
Wyoming, however, has a lot of untapped benefits that business owners miss out on by focusing too much on the location appeal of Nevada.
“What are the benefits of a Wyoming LLC?”
Wyoming LLCs Are Easy To Move
The state of Wyoming makes it incredibly easy to move your LLC (if you already have one established). The state of Nevada does not.
Wyoming LLCs Are Easy To Setup
There are no requirements for you to come to Wyoming to form your LLC. You can handle everything from your computer with our help.
Just contact me at [email protected] and I can show you how easy it is to get started.
What To Do Next
There’s a lot of paperwork that goes into filing your Wyoming LLC. As a business lawyer, this is something my firm does on a daily basis.
It isn’t worth taking the risk and making a mistake when you try to file on your own. Once you make a mistake that mistake comes part of your permanent record.
I can’t tell you the number of times our firm picks up a new client who worked with a low-rate agent service and got their information incorrectly filed.
You do business with us, so it gets done right the first time.
We take care of everything for you and we make sure it is handled the right way.
Send me an email at [email protected] for any questions you might have.
Source: https://t-tees.com
Category: WHY
