Do you want extra protection for your business! I would encourage you to think about putting an umbrella around your existing corporation. And if you do….use a Nevada, Delaware, or Wyoming LLC. There are several reasons you should consider doing this! More than half of public and Fortune 500 companies are incorporated in Delaware, and Nevada offers attractive tax advantages. Wyoming state fees are less than most other states. Wyoming has no business license fees or officer filing fees.
Why a Wyoming LLC?
- No state taxes
- Asset protection and limited liability
- Members nor Managers are not listed with the state
- Best asset protection laws
- No citizenship requirements
- Perpetual life
- Transferability of ownership
- Ability to build credit & raise capital
- Number of owners is unlimited
- Lower startup costs- with Registered Agents of Wyoming LLC, the cost of forming an LLC is affordable.
Why a Delaware LLC?
- Delaware’s business law is one of the most flexible in the country.
- The Delaware Court of Chancery focuses solely on business law and uses judges instead of juries.
- For corporations, there is no state corporate income tax for companies that are formed in Delaware but do not transact business there (but there is a franchise tax).
- Taxation requirements are often favorable to companies with complex capitalization structures and/or a large number of authorized shares of stock.
- There is no personal income tax for non-residents.
- Shareholders, directors and officers of a corporation or members or managers of an LLC don’t need to be Delaware residents.
- Stock shares owned by persons outside Delaware are not subject to Delaware taxes
Why a Nevada LLC?
- Nevada doesn’t tax corporate profits or LLC profits.
- Nevada doesn’t tax corporate shares or LLC ownership. Some states (not many, mind you) tax individual shares in a company.
- Nevada has no franchise tax.
- Nevada has no personal income tax.
- Nevada doesn’t have an Information Sharing Agreement with the IRS. (There’s no information to share, because there is no income tax department).
- Shareholders in a Nevada corporation and owners in a Nevada LLC are not a matter of public record-shareholders can remain completely anonymous.
- Officers and directors of a Nevada corporation can be protected from personal liability for lawful acts of the corporation.
- Nevada corporations may purchase, hold, sell or transfer shares of its own stock.
- Nevada corporations and LLCs may issue stock for capital, services, personal property, or real estate, including leases and options. The directors may determine the value of any of these transactions, and their decision is final.
- The Nevada secretary of state’s office provides excellent customer service and excellent web support.
So which is the best? Well that is an answer that ultimately I would ask you to seek the advise of both your trusted Tax Accountant as well as a good Tax Attorney. Never trust an accountant with a lawyer’s job, and never trust a lawyer with an accountant’s job. They should direct you to help you with the exact needs of your business.
Each of these states have different policies, fees, and filing procedures. This is why it is important for you to talk to your accountant and how this will best suit your needs.
Are you a Sole Proprietor? If so You should get a corporation NOW…Read HERE!
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