Did you know that when you incorporate your business, you pay fewer taxes? Did you also know that the state where you incorporate can have a huge impact on your business overall? While you can incorporate your business in any state in the U.S., there are a range of different filing fees, licensing fees and other “hidden” fees that you may not even be told about until after you have incorporated and it’s too late to change your mind.
There are three ways you can incorporate your business:
- Hire a lawyer (this is the most expensive option)
- Do it yourself by walking in to the State Department (not recommended unless you have experience)
- Hire a professional incorporation company (many people choose this option but it’s not mandatory)
The state of Wyoming offers significant incorporation benefits, different from other states. Here are seven compelling reasons to choose Wyoming over any other state.
No Licensing or Filing Fees
Unlike other states, Wyoming does not charge licensing or filing fees to complete the incorporation process. You also won’t find any hidden fees after you file, as you do in other states where they hit you with a $125 filing fee 30 days after you incorporate which they don’t tell you about upfront. This means that your overall start up costs can be greatly reduced. The state renewal fee is only $50, which means your ongoing costs will be reduced as well.
Asset Protection
Corporations in Wyoming offer a higher degree of asset protection against creditors and disgruntled clients with overzealous attorneys. You and your officers don’t have to worry about losing your home, car or other personal assets. Wyoming has had LLC, limited liability companies, available since 1977, and its laws were updated in 2010 in order to stay current with the times. They have the most stringent laws in place in order to protect LLCs and their assets.
Citizenship Not Required
In order to incorporate your business in Wyoming you do not need to be a U.S. citizen. In fact, you can be located anywhere in the world. It should be noted, however, that there are certain exceptions to this rule. Certain countries, including Cuba, Zimbabwe, Iran, North Korea, and Burma are not eligible for incorporation of a Wyoming business. Also, if you need a U.S. bank account, you must physically visit the U.S. so they can verify your ID. There are no extra fees involved with incorporating even if you live outside the U.S.
No State Taxes
Wyoming is one of the few states that do not require corporations to pay state taxes. Think of how much money this will save you each year. The potential is a savings of thousands of dollars. You could use this extra money to put back into your business or to give your employees a bonus. Wyoming is one of the only states that have a budget surplus. There have never been state taxes on corporations here, and there likely never will be. Other states’ lobbyists are fighting hard to impose taxes there and it will happen sooner rather than later.
Privacy
Unlike other states, there is no requirement in Wyoming for the manager or LLC members to be entered into a public database. Your privacy is protected and ensured when you incorporate your business in Wyoming. The bottom line: your private and personal information will not be made available to the public. Nominee officers are not required to be listed, ensuring an even greater level of privacy.
Easy to Move
If you are already incorporated in your home state and you would like to move to Wyoming, you don’t have to worry because Wyoming makes it easy to move and is one of the only states that allow this. There are some restrictions, including:
* The date for your renewal in your home state must be more than 6 weeks away from the time you start the moving process.
* There may be a fee you must pay to your state for dissolving the company there.
Wyoming is considered one of the most “business friendly” states, due to the reasons above, and the fact that the incorporating process is very simple and straightforward. Any business can incorporate in Wyoming, but among the most popular are those that don’t actually have brick and mortar buildings. That is, they are service businesses, home businesses, or internet businesses. Just about any industry can become incorporated, including catering, restaurants, marketing, and even hair barrette makers..
There are certain rules associated with incorporating, such as annual meetings and number of shareholders, among others. It’s important that you understand all of the rules and guidelines associated with owning a corporation regardless of which state you file in. Do your research both online and offline, and talk to others who have incorporated. Get their input on the advantages and disadvantages. It’s not as difficult as some lawyers make it out to be, but there are certain guidelines that must be adhered to. Once you incorporate your business, you will have many cost advantages and will be able to save thousands on your taxes and other fees. This will increase your bottom line and put more money in your pocket. And isn’t that what owning a business is all about?
