What is a Wyoming LLC?
A Wyoming Limited Liability Company (LLC) is a business entity formed in Wyoming and governed by Wyoming statutes. What makes the Wyoming LLC an appealing vehicle for doing business is that the LLC is a blended mix of a corporation and a partnership. Wyoming LLCs use the tax structure of a partnership and the limited liability protections of a corporation. Combining these elements into one legal entity has helped make the LLC the most widely-used business structure in America. But what makes the Wyoming LLC a superior business entity is are the Wyoming laws that govern it.
Wyoming LLC Uses
Wyoming LLCs can be utilized in a wide variety of situations including estate planning and asset protection strategies. However, there are two primary uses of Wyoming LLCs.
- Actively Doing Business
Any sort of lawful business activity can be conducted by a Wyoming LLC. With its versatile nature and strong asset protections the Wyoming LLC offers startups and long-time businesses a wealth of advantages (see below for description of Wyoming LLC advantages).
- Holding Companies
Many individuals who are looking for a reliable asset protection strategy look to Wyoming. Wyoming LLC holding companies are LLCs that are not actively involved in doing business. For all intensive purposes a holding company is formed to hold assets. Under Wyoming state law, an LLC can hold any kind of property, whether that be real estate, stock, bonds, intellectual properties, tangibles and intangibles, the Wyoming LLC can own it all, and the asset protections combined with statutes that allow members of LLCs to keep their personal information private make it one of the most attractive holding company LLCs in the country.
Wyoming LLC Advantages
If you’ve been looking around for the best LLCs in America, almost undoubtably, you’ve heard of the Wyoming LLC. This is why:
- Limited Liability and Asset Protection
Limited liability and asset protection is the top strength of every Wyoming LLC. Each LLC formed in Wyoming is protected by tough statutes put in place by a legislature actively seeking to attract business owners. Wyoming is one of only a few states that has extended these protections emphatically to single-member LLCs in Wyoming (§ 17-29-503).
Members are owners of Wyoming LLCs. Ownership in an LLC is divided into percentages instead of shares of stock. Often when an LLC is formed members can be given membership certificates as documentation of their contributions to the company. Owners can set their own rules in the operating agreement pertaining to LLC formalities, management, how other members may be admitted, as well as a host of other concerns.
If a Wyoming LLC hires a Wyoming registered agent, no member is required to list their personal contact information, or even their name. This privacy afforded to members doesn’t mean they can skip taxes or hide assets, but it does secure members of Wyoming LLCs from data breaches and its not as easy to figure out how many assets a person has simply by running their name through a state website.
The Wyoming Limited Liability Company (LLC) is taxed as a pass-through entity, like a partnership, meaning all profits are passed onto the members and treated as personal income. This is huge because Wyoming has no state personal income tax. Wyoming LLCs can also choose to be taxed as an S-corp or C-corp federally, should the members choose those options.
- Low Maintenance Fees
While you may need to hire a Wyoming registered agent if you don’t live in Wyoming, all Wyoming LLCs must file an annual report with the Wyoming Secretary of State to remain active. This report costs $50 to file (an additional $2 to file online), but is much cheaper than popular states like Delaware and Nevada.
In 1977, Wyoming became the first state to allow the formation of LLCs. Since that time, LLCs have become the preferred entity of choice by entrepreneurs and start-up companies, as they allow for all the protection of a corporation without any of the formality requirements like annual meetings and corporate resolutions.
To continue learning about Wyoming LLCs, please explore our site. It’s non-commercial. We’re not selling anything except the notion that Wyoming LLCs are helpful business tools and we’d love to see Wyoming become better known for its business friendly environment.