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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. 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
LLCs that are based in Wyoming are greatly protected against lawsuits filed by plaintiff attorneys and creditors. Compared to other states, laws in Wyoming’s protects all sorts of LLC even those with single members.
Maintains the Utmost Privacy
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. For example, in California, the state law may use a court order in selling the assets of the LLC to benefit the creditor. The said court order leads to a judicial dissolution, otherwise known as the corporate death penalty, and the subsequent 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.
In the state of California, the court will order the LLC to sell certain assets for the overall benefit of the judgment 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.
Establishing an LLC: Wyoming or Delaware
Factors to Keep in Mind
By glancing at both Wyoming and Delaware, both seem like ideal states to set up an LLC. A closer look will reveal each advantage and disadvantage of a state which will be based on the needs of a business.
Establishing an LLC in Wyoming is a good choice, even for small businesses. The fee for filing the small business is considerably small and the subsequent renewal fee is only $50. Not only that, that the LLCs established in Wyoming are not required by law to pay franchise taxes as well as state income; this a huge advantage for small and starting 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.