Why Should I Incorporate my Business in Wyoming?
Wyoming is very friendly to in-state and out of state businesses as they insulate the owners from potential lawsuits. They do not store the business and partners information and will not share with the Internal Revenue Service since they do not have anything stored.
Wyoming companies can issue stock for real estate, services, options, leases, capital and personal property. The decision on how much stock is issued is done by the Directors or Managers and their decision is final.
Is it Really Legal to Incorporate in Wyoming When my Business is in Another State?
One of the number reasons companies from out of state incorporate in Wyoming is they are protected by Wyoming laws. This means, if there is a lawsuit brought against the corporation, the litigation has to be done in Wyoming. This adds additional costs to the lawsuit that most lawyers want to avoid.
Incorporating in Wyoming Protects Your Assets
Wyoming has about one thousand six hundred lawyers that can help you in case there is a lawsuit brought against a corporation. The corporation insulates the owners’ personal assets so if there is a lawsuit, the only thing that can be seized would be the assets of the corporation.
Keep in mind that lawyers look for companies that have a lot of assets before they take on a case. Many of our corporations who start building a lot of assets will form second and third or more other corporations to move some of their assets to protect them.
More Reasons to Incorporate in Wyoming:
- Shares are not taxed in Wyoming
- No state business license
- No gift or inheritance tax
- No franchise taxes
- No personal income taxes
- No unitary or estate tax
- The fees are lower than most states
- Shares for corporations are not taxed
- Property and sales tax rates are competitive
- Low employer payroll tax
How do I know if I Should Form a Limited Liability Company or a Corporation?
When you go to form your company, it is best to consult with your Certified Public Accountant or Lawyer to see what type of business entity would work best for your business.
The benefit of forming a corporation whether it is a “C” corporation or a “S” corporation is the owners can be paid a salary. The corporation is then taxed like an individual. Paying the owners a salary reduces the profit of the company thereby reducing the tax burden.
Limited Liability Company also knows as a LLC is best for a small business that does not plan on having employees. A LLC cannot pay a salary to the owns as the profit and losses is passed on directly to the owners. When taxes are calculated, each owner is given a K-1 which they then use for their personal income tax calculation. In the case of one owner, taxes can be calculated as a partnership or sole proprietor.
LLC’s in Wyoming are popular as they are easy to set up and the fees can be much lower than other states.
The professionals at Wyoming Discount Registered Agent have been working with businesses all over the United States to help them set up their corporation or Limited Liability Company in Wyoming.