Home » Business » Strategic Planning

Nevada Vs Wyoming, In Which State Should I Incorporate?

May 27, 2008
Like Nevada, Wyoming does not impose a state corporate income tax or other taxes. And like Nevada, the key is you must have nexus in the state of Wyoming in order to qualify for the tax savings, otherwise your Wyoming Corporation or LLC will need to register (or qualify) to do business in the state where you live and operate your business. This will negate any tax savings that Wyoming may have to offer. Even an Internet business must determine where nexus is created in the operation of their business.

"The state of Wyoming does not levy a personal or corporate income tax. Wyoming does not impose a tax on intangible assets such as bank accounts, stocks, or bonds, either. In addition, Wyoming does not assess any tax on retirement income earned and received from another state. Further, there is no legislative plan to implement any of these types of taxes."

Less State Fees

Wyoming's initial state fees are less than Nevada's. Wyoming does not require an initial list of officers or managers, which will save you $125, although Wyoming does require a state business license of $100. The key, however, is to evaluate the benefit of Wyoming as the "pivot point" for your business and financial future, not the fees involved.

One of the biggest mistakes made every day is using as the main criteria for business decisions, "What do you charge"? Price can be the worst way to evaluate the quality and results of a product or service. True, it's a factor... but there are so many more important ones. Saving $200-$300 on incorporating fees when you are going to be investing (and must protect) tens of thousands in your business is not a wise decision.

Asset Protection

Many companies conclude that since LLCs started in Wyoming in 1977, Wyoming must offer the best protection. Let's be clear: oldest does not mean best. Many more cases have gone through the Nevada and Delaware court systems and found stronger level of protection. Specifically, Nevada vigorously protects officers, directors, and the entity veil itself.

Privacy

Wyoming allows Nominee Officers and Lifetime Proxies. Attorneys and accountants are often asked to provide an anonymous "company cover" for their clients for added privacy. To do this, you need to appoint nominee officers and/or directors for the company. NCP recommends that you avoid this strategy, because privacy is very different from asset protection.

The key question here is, how did your assets get into the corporation or LLC? Typically, transferring assets into an entity is done in exchange for ownership of the entity. Therefore you exchange one asset (your cash or real estate) for another (most commonly, ownership interest in the LLC.) Money wired from your personal account to the newly-formed LLC also leaves a trail.

Unfortunately, privacy as a benefit is in many cases over sold by slipshod corporation formation services.
About the Author
Scott Letourneau is the CEO of NCP,Inc. and an authority in helping people form entities,grow their business,and protect the assets of that business. For more info contact: Scott Letourneau at 702-367-7373 or http://www.nvinc.com/whyincorporateinnevada.htm
Rating:
Please Rate:
(Average: Not rated)
Views: 266
Print Email Report Share
Article Categories