Register An LLC In Wyoming, USANovember 26, 2022
Reasons Why You Should Consider Registering An LLC In Wyoming, USA
Presidents of the United States are not elected directly by voters but rather by presidential electors. The number of electors that each state delegates reflects the number of its congressional representatives. This sort of electoral system has brought about weird election results at least two times in American history. Several years ago, Al Gore lost the presidential elections even though the majority of Americans voted for him. Quite recently, Donald Trump found himself in the same situation.
Such election results may look unreasonable to an outsider but Americans are not prepared to change their electoral system. The word ‘state’ is synonymous to the word ‘country’ and the USA is a true federation in the sense that it is a union of states (or countries) that are sovereign entities to a large degree. Thus, it is not the majority of people who have to elect the head of the federation. Rather, it is the majority of states that are to do this job. There are federal laws in the USA without doubt but the legislators of each state have considerable powers in passing their own – state – laws. State laws can be quite dissimilar and this includes corporate laws as well. What is more important for an entrepreneur thinking of starting a business company in the USA is the fact that each state has its own tax system as well.
As you have probably heard, a number of large corporations have left or are leaving California because the corporate taxes are way too high in that state. These corporations are relocating to other states in the country where the taxes are not so burdensome. Moreover, there are some states in America that are sometimes even referred to as ‘tax havens’ because they levy minimal state taxes. Delaware and Nevada are probably best known for their low taxes. However, we would like to draw to your attention the opportunity to register an LLC in an American state where taxes are even lower than they are in the two aforementioned states. Its name is Wyoming.
Foreign citizens are welcome to register LLCs in Wyoming, USA in their names. A single person is entitled to establish an LLC in this American state. This form of company ownership is the most popular one in the USA because it has unquestionable advantages. LLCs are taxed the same way as Partnerships are taxed in Wyoming: all the company profits go to the company owners who are taxed as private individuals. At the same time, their liabilities remain limited, which is not the case with General Partnerships. Think how attractive the opportunity is: you can be the only founder of a US company that has limited liability! Moreover, the legislation of Wyoming protects the company property in a highly efficient manner.
One more compelling reason to register an LLC in Wyoming is the opportunity to pay 0% in state taxes. However, this applies only to the companies that belong to non-residents of the USA and that are not engaged in any business activities in Wyoming. This does not mean that you cannot do any business in Wyoming using your LLC registered in the jurisdiction. But if you sell goods or services to the residents of the state, you will have to pay a sales tax. Zero tax payable in Wyoming also does not mean that you won’t be paying any taxes on your profits. Your income is going to be taxed in the country of your citizenship or residence at the rates that apply there. Besides, if you employ personnel for your company in Wyoming, you will also be liable to the payroll tax. This requires obtaining an Employer Identification Number from the local corporate authorities and opening a bank account.
Another important advantage that a Wyoming-registered LLC can bring is the high level of company owners’ data protection. The only piece of information that is going to be available to the public when you register an LLC in the American state is the fact that the company exists. That’s it. The company owners’ names, the amount of the charter capital, the business areas that the company is involved in, and all other company-related information is going to remain confidential.
When forming an LLC in Wyoming, you will have to draw up an Operating Agreement that will serve very much as your Company Charter. The Agreement will have to reflect the percentage of ownership that each of the company founders has, the types of business activities that the company in going to be involved in, a description of the procedure of transferring ownership rights to other persons, the distribution of management roles between the company founders, and other essential information pertaining to the LLC that you register in Wyoming. At the same time, this document is going to be completely confidential: you will have to submit it to the Registrar and it is going to be available to the LLC owners exclusively.
The majority of foreign entrepreneurs registering LLCs in Wyoming do so with the primary purpose of opening a bank account in the USA. The procedure is a rather complicated one but with professional assistance of offshore industry specialists, you can certainly set up a US bank account. Needless to say, having a bank account in the USA will open a wide range of new opportunities for you. You can apply for services to a major American bank such as Chase or Bank of America, for example. In this case, however, a local resident will most likely have to act as a co-signer of your application. At the same time, if you are willing to make a deposit of US$ 50,000 or more, a number of mid-size US banks will gladly open their doors for you. Besides, there are also a few Payment Service Providers whose services are very similar to those provided by traditional banks.
Should Wyoming be referred to as a tax haven? Probably not because some taxes are payable in the American state. It cannot be denied, however, that the Wyoming corporate legislation makes the state really attractive for foreign entrepreneurs because some serious tax incentives can be found there.