Benefits of Forming an LLC in Wyoming
When business formation is concerned one of the first states that come to mind is Wyoming. Wyoming offers amazing asset protection benefits as well as no state taxation. Wyoming doesn’t require their stakeholders, like officers, directors, managers and shareholders, and key company decision makers to hold meeting or live in the state in order to enjoy their business friendly corporate and LLC laws. 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. Single member LLC are even protected by Wyoming’s laws, unlike other states.
Revealing the names of the members of managers of any LLC is not required in the state of Wyoming even on any state public database. Privacy is highly valued by the state of 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. One example is when California allows their court to issue an order to sell the assets of an LLC in order to benefit the creditor. The court order will result to a judicial dissolution, also called a corporate death penalty and the termination of the LLC.
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. Thus, the investment or business entity is considered as dissolved. The power of the California court over a Wyoming LLC raised strong and valid arguments but ultimately, an LLC formed in Wyoming will be governed by Wyoming laws.
Where to Establish an LLC: Wyoming or Delaware?
Factors to Keep in Mind
At first glance, Wyoming and Delaware are great states to establish an LLC since they seem business-friendly. But upon closer inspection, every state hold advantages as well as disadvantages, heavily depending on the specific needs of a business.
Establishing an LLC in Wyoming is a good choice, even for small businesses. The initial filing fee for setting up an LLC in Wyoming is relatively small and annual fees only add up to $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.
On the other hand, Delaware has recently increased numerous fees, which could greatly impact the decision of a potential owner to establish their business there.