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.

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Scott Letourneau is the founder and CEO of Nevada Corporate Planners, Inc. Over the past 10 years NCP has assisted more than 4,500 business owners form LLCs and corporations in the state that’s right for them! Visit right now to find out what state is right for you!

The “Safe” and “Simple” choice for you in deciding which state to incorporate in is to form your entity, LLC or, corporation in your Home State.

This may be the best choice for some, especially if you’re operating with a low budget and particularly if you’re still equivocating: “I’m not even sure if my business will work.” Your absolute worst option is to operate as a sole proprietorship, so at the very least you should establish a separate legal entity.

Keep in mind that “simple” and “asset protection” are inversely related. That means if you want more protection for your current and future net worth, keeping it simple (meaning using your home state because it costs less) and/or not having separate entities for separate assets are recipes for disaster and much more expensive than doing it correctly from the start!

The more financial success you enjoy the more complex your structure should be. The key here is to outsource these services to a company that can make it easy for you.

But Wait…Planning to Move Out of Your State in the Next Few Years?

Then your best “pivot point” is Nevada. Here’s why:

Imagine you live in and have incorporated your business in California. An unexpected opportunity arises, and a year later you move to Florida. California has an annual franchise tax fee ($800 at a minimum.) Florida does not. Do you want California to be your state of domicile, and now have to foreign register into Florida?

In this case, there’s no advantage to being linked to California. So do you dissolve the California Corporation and form a new one in Florida? That strategy means you’d lose 1-2 years of track record, which is very important when it comes to establishing business lines of credit.

If you anticipate even a possible change of circumstances in the next 2-3 years, the best approach is to incorporate or form your LLC in a state like Nevada and foreign register from the start.

It is opportunity to incorporate and keep that corporation alive in the 21st century business community. With many people, a home based business is the answer to their dreams and having the freedom to move about the country is one of the advantages of forming your entity in a state like Nevada. Makes sense, doesn’t it?

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Scott Letourneau is the founder and CEO of Nevada Corporate Planners, Inc.  Over the past 10 years NCP has assisted more than 4,500 business owners form LLCs and corporations in the state that’s right for them! Visit right now to find out what state is right for you!

When it comes to protecting your hard earned assets you want every advantage possible. When incorporating in Nevada it is often promised that there is a level of privacy for the owners of a corporation or LLC that will help them in case of a lawsuit. Some individuals looking to form a Nevada corporation or LLC are hoping that if they get sued no one will find out who the owner of the corporation or LLC may be. Thus, preventing them from being a the target of frivolous lawsuits. In the context of litigation, the best scenario is presenting properly structured business model and having the court rule in your favor resulting in your assets being protected. That would be ideal!

Now, if it takes longer for someone to get to first base in your situation to figure out who the owners are, wonderful, that just means the plaintiff will have to spend more money! After all, aren’t most lawsuits a simple gain of economics? And if you can make it very expensive for the plaintiff to find your assets the better!

So what is the challenge…

The challenge is the creation of rock solid asset protection plan that does not rely solely on the illusory promise of privacy through the use of Bearer shares (which doesn’t work) and nominees (which works to a certain degree). If the whole plan is designed to prevent the discovery of your assets to fend off a lawsuit and the corporation or LLC lacks substance; there are no employees anywhere; and no business license, the plan is doomed to fail. The only way you would be protected would be to hide under a rock, because you had to be so private!

Again, if you structure a rock solid asset protection plan and have privacy along with it that is the icing on the cake!

The common places most people have to give up their identity as being linked to a corporation are in the following areas:

1. Issuing stock
2. Obtaining a Nevada Business License
3. Opening a Nevada bank account
4. Being an employee or independent contractor to the corporation
5. Entering into other contracts or agreements
6. Loan applications from banks

It is important to realize that you may be private on the surface corporation, such as the state records, but eventually, your name will appear in one of these six (6) areas. You cannot be so private that your name won’t appear in one of these six (6) areas, unless you choose to have no role in your corporation or LLC.

Nevada is pro-business and has a strong history of protecting the corporate veil. Creating a sound business model and understanding all of the strategies available to you will complement your plan of asset protection.

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Scott Letourneau is the founder and CEO of Nevada Corporate Planners, Inc. Over the past 10 years NCP has assisted more than 4,500 business owners form LLCs and corporations to get their business off to a fast start! Visit for insight and essentials in proper entity formation.