Wyoming Corporation Advantages: Everything You Need to Know
One of the biggest Wyoming corporation advantages is that it’s generally a great deal less expensive to incorporate in Wyoming than in other states. 3 min read
One of the biggest Wyoming corporation advantages is that it’s generally a great deal less expensive to incorporate in Wyoming than in other states. For examples, there are not any associated filing fees or business license fees in Wyoming, while your annual renewal fee is typically only about $50 — a full 90 percent less than Nevada.
Wyoming actually holds the distinction as being the first state to provide a limited liability company (LLC) statute, apparently as a means of creating special legislation for an oil company. Due to this long history of working with LLCs, Wyoming touts itself as being the superior state for such business models. While there are any number of selling points that Wyoming uses to appeal to business owners establishing an LLC, the three biggies are:
- Lower taxes
- Lower fees
- Better asset protection
The list of things that Wyoming does not have also adds to the advantages, should you choose to live and/or do business there. For example, Wyoming does not have:
- Personal income tax
- Corporate income tax
- Inventory tax
- Gross receipts tax
- Franchise tax
- Burdensome regulations
- Disclosure to shareholders
- Business tax, also known as per-capita tax
- Excise tax
Essentially, Wyoming has much less “red tape” and formalities associated with establishing and maintaining a corporation there. For example, in Wyoming, unlike many other localities, there is not a minimum capitalization requirement, meaning that you can start your corporation with as little or as much money as you want.
Additionally, in Wyoming, stocks in your company may be exchanged for anything of value, so while you can certainly use money, you can also make the exchange using property, previous gems, etc. As such, if you are a business owner who is looking for less government interference or just a certain amount of ease in doing business, then Wyoming would certainly be an appealing option.
If that’s not enough, Wyoming’s sales, property, and inheritance taxes are among the lowest in the United States.
As previously mentioned, Wyoming prides itself on having superior asset protection for LLCs compared to that of other states. For example, in Wyoming, all of the founders of a company and its directors are offered the highest possible asset protection. In turn, this protects these individuals from potentially frivolous lawsuits or creditors, as the directors are not held responsible for the company itself.
In addition to protecting the assets of the individuals who have formed an LLC or served on its board of directors, the state of Wyoming also does a great deal to ensure the protection of privacy for such individuals. In many states, it is required that the names and addresses of the aforementioned individuals be public information; this is not the case in Wyoming.
In fact, the only information you need on the business license in Wyoming is the Tax ID number for your corporation. After all, the more information about yourself or your business partners that you provide, the more open you are to lawsuits and more. As stated, Wyoming is better than most at protecting those involved with business ventures from such acts.
If you choose to incorporate your business in Wyoming, you are not required to be a resident of the state. In fact, you do not even have to be a citizen of the United States; you can actually live anywhere in the world. Beyond that, your company’s physical operations do not even need to take place in Wyoming.
Additionally, your corporate board of directors meetings are not required to be held in Wyoming, as they can also take place anywhere you would like. Simply put, if you are not already a resident of Wyoming, you never need to actually step foot in the state if you don’t want to, despite having your business incorporated there.
Wyoming also provides a great deal of flexibility to business owners, regarding how the business in run; the decision is ultimately left up to the individual(s), without state interference. In turn, this allows for flexibility for those LLCs that are owned and operated by only one individual, as well as those that are managed by multiple employees.
If you need help with Wyoming corporation advantages, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.