Where the LLC was born
SOME HISTORY
The State of Wyoming has been a first in many progressive and business fronts, and it does not really get the recognition that it deserves.
The State motto of “Equal Rights” refers to the elevation of women to an equal rights political and citizen status allowing them to vote and hold public office in 1869. Although the measure was really to ensure there were enough voters to achieve statehood, the ramifications and reach of the policy were transformational. As a matter of fact, Nellie Taylor Ross was the first female Governor elected in 1924. For perspective, the National suffragette movement didn’t achieve to secure these rights for women until 1920. Over 50 years after Wyoming!
With this backdrop story it is not unusual to understand Wyoming as a State with true pioneering spirit. In the business front, it was the FIRST State to allow in 1977 a new form of corporate structure, the LLC. Today, at least two thirds of all new companies recorded in the US are Limited Liability Corporations. Delaware, the State of corporate reference and standards did not allow LLC’s until 1991 after a much considered and debated piece of legislation.
WYOMING LLC ADVANTAGES
NO TAXES. One of the few States with no personal or corporate income taxes AND no sales taxes. Which means that it does not share any information with the IRS. Sounds like a paradise right? It does not impose taxes on intangible assets either, such as bank/brokerage accounts, bonds, and the like. However, it does collect a franchise tax on tangible assets like real estate (a very low $0.0002 per dollar value). It is seriously the ultimate holding company.
PRIVACY MATTERS. The State keeps your information pretty much offline and privacy is set a a very high standard. The names and info of LLC members do not appear on any government database or recorder’s office. To keep checks and balances though, Wyoming asks your registered agent to obtain this information which remains absolutely private. Only a Wyoming Court order instructing your registered agent to release this information to the State can get it disseminated.
CHEAP MAINTENANCE. Annual fees are very low, if not the lowest, in the entire US at only $50.00
If you are looking for a simple, affordable solution to form a holding company, then a Wyoming LLC is a great option. Many Amazon (FBA) affiliates are organized under a Wyoming LLC for the reasons covered in this blog entry, as most other States will allow you to open a bank account for a foreign entity without triggering any nexus responsibilities. More about the theory of nexus here.
The perfect example would be an entrepreneur overseas, lets say operating the website in Mexico (Baja), forming LLC in Wyoming and opening bank account in California. California would not consider this enough nexus and allows the Wyoming LLC to bank in California without the requirement of registering as a Foreign Entity and therefore not triggering the hefty $800 annual California franchise state tax. The entrepreneur would only have to pay $50 dlls annually to Wyoming. Dirt cheap with plenty of privacy protections, its a no-brainer. Get your Wyoming LLC today!