X-Banker

Why Nevada and Wyoming?

March 5th, 2008

By The XBanker

When I give a speech on incorporating and asset protection I always ask the audience: “Why Nevada and Wyoming?”

And I always get a laugh when I answer it with: “Because I have offices there.”

But in truth, the reason I have offices in Reno and Minden, Nevada, and in Jackson Hole, Wyoming, is because the two states offer truly excellent corporation and LLC benefits.

First of all, there are no state taxes, either personal or corporate, in either state. Everyone knows why there are no taxes in Nevada – gaming revenues cover the bill. Granted, the casino industry has been charged with privatizing the profits and socializing the problems but for no and into the future no one is complaining too much as long as there are no state taxes.

Wyoming has no state taxes as a result of mining royalties. They are digging up coal and other resources at a prodigious rate, and the royalties have produced a significant surplus for the state.

So you won’t pay extra taxes for choosing Nevada or Wyoming as your corporate home. You will pay an annual fee ($225 for Nevada/$50 for Wyoming) but for that small amount of money you are getting a favorable asset protection law.

Both Nevada and Wyoming have the charging order protection for LLCs and LPs. Nevada just added charging order protection for corporations with two or more shareholders. You can be certain Wyoming will follow suit. The subject of another post, know that charging order protection offers excellent asset protection.

Wyoming and Nevada both allow for nominee officers. By using a person other than yourself (a “nominee”) to be listed as the company’s officers and directors on the public record you can gain a great deal of privacy.

Privacy, no state taxes and excellent asset protection are the three answers to the question: Why Nevada and Wyoming?

This entry was posted on Wednesday, March 5th, 2008 at 12:42 pm and is filed under Incorporation Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. J. Jake said at March 12th, 2008 at 5:20 pm

   I formed an LLC in a different state about 4 years ago. Would you recommend changing to a WY or NV? Would I lose the history? Maybe it’s not possible. I guess what I’m really trying to find out is what my options are at this point so I get the benefits you mentioned?

2. Garrett Sutton said at March 16th, 2008 at 12:30 pm

   J: It depends what state you are in. California has a very weak asset protection law. Arizona’s is not too bad. If you are in a less than desirable state you can ‘continue’ your existing LLC into Wyoming. This process allows you to keep the incorporation date and corporate credit you may have built up but have the benefit of Wyoming law. You can call our office at 800 700 1430 and speak to Cammie about the process. Good luck, Garrett

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