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Bitcoin Banking

Did you know that Wyoming is the first state to have legal Bitcoin Banking?  Shortly there will be two banks that work with Bitcoin in the State of Wyoming, that are overseen by the Wyoming Banking Commission and there are strict rules that they must follow to maintain their Banking License.

Avanti Bank and Trust is one of the companies to have successfully secured a bank charter from the Wyoming State Banking Board, making it the second entity to attain such a feat in the United States, according to a press release on October 28, 2020. This will permit them to operate as full-reserve banks, linking bitcoin and the federal reserve payments system.

With the new bank charter, Avanti says it plans to roll out a vast array of innovative products and services including Avit, a United States dollar-backed stablecoin, digital assets custody services, API-based online banking services, and more.

“Currently, the only type of U.S. financial institution that can provide final and simultaneous settlement of trades between digital assets and the U.S dollar- because it is the only type currently approved to handle both within the same legal entity – is a Wyoming special purpose depository institution like Avanti. Wyoming is the only U.S. regulator with a bank supervisory and regulatory program for digital  assets that is near completion.”

Avanti says it will start offering commercial accounts in the first quarter of 2021.

Use a Wyoming Company to hold your Bitcoin

If you use a Wyoming LLC to hold your Bitcoin, it cannot be taken from you to satisfy a creditor that may come after you. Wyoming state officials said the depository institution gives businesses a way to hold digital assets legally that also provides greater protection in bankruptcy.

Chris Land, general counsel of the Wyoming Division of Banking, explained at a New York cryptocurrency summit that with a bank incorporated in the state, a bankruptcy judge would be “required by U.S. Supreme Court precedent to apply the laws of Wyoming to that contract in bankruptcy.”

“So you can be sure you’ll get your asset back,” Land said.

Wyoming Corporate Services Inc will be offering packages that will help you hold and bank your Bitcoin in Wyoming.  Click here

Answer: NO. Wyoming law does not require that you have a bank account in the State of Wyoming. You can open a bank account at the bank of your choice – wherever you chose.  Some banks have internal policies that state the company must be registered in the state where you are opening a bank account for an LLC. If the bank tells you this, simply go to a different bank.

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The main difference is how they are taxed by IRS.

• C-Corp – profit and loss stay in the company and it files its own tax return. It pays 21% flat tax on PROFIT – not earnings.
• Sub – S – Corp the profit and losses flow through to shareholder – proportionate to ownership and they claim it on their personal tax return
• LLC – in the eyes of the IRS is a “disregarded entity” a flow through – meaning the profits and losses flow through to the members and they claim it on their personal tax return. However ownership percentage does not have to be the flow through percentage.  An LLC can be taxed as a C-Corp or as an S-Corp as well.

Always check with your CPA to determine which tax structure is best for your situation.

See LLC vs Corp tab for more detailed information.

• For one thing there is the stigma that goes with Nevada – good, bad or indifferent – people just assume when you have a Nevada company that you are trying to hide something. Which is the reason Nevada companies get so much bad press.
• Nevada companies get audited at a much higher frequency that any other State.
• The fees in Nevada are higher.  State license is $200 – $500 – and item #12 says “you must list ALL officers, directors, shareholders and members. First/last name, DOB, SSN, home address, home phone number and percent of company owned.” There goes privacy!
• Nevada has a Commerce Tax! Not all business are required to pay the tax but all business MUST file a Commerce Tax return each year to keep business active. When you total all the fees up – will cost between $800 – $1000 yr to just keep your entity active and in Good Standing.
• Wyoming has the strongest asset protection laws of any State.
• Wyoming is the first State in Union to recognize LLC back in 1977.
• Wyoming offers more privacy.

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Executive Summary

When it comes to securing asset protection quickly, accessing contracts or lease agreements without corporate history, or incorporating a company after doing business as a sole proprietor, utilizing a previously formed and seasoned aged shelf corporation can save significant time and money.

A well-formed and maintained shelf corporation offers a spectrum of benefits:

● Convenience of securing an entity without taking the time to build it from scratch

● Seasoning of an older incorporation date creates credibility and enhanced positioning

● High levels of asset protection & privacy

However, not all aged shelf corporations are created equal. Promises of corporate credit lines can also come with future liability attached. If the vendor defaulted on paying state fees at any point during the aging process, it will show on public record — even if these fees are brought current before the transfer.

While aged shelf corporations are readily available for purchase online, it is absolutely crucial to know what to look for in a vendor, and what to avoid when buying an aged corporation.  Follow the following guidelines to learn how to buy an aged shelf corporation.

To ensure the aged shelf corporation is truly clean and will immediately serve a client’s needs, seek these critical capabilities in a vendor:

● Keeps a diverse inventory of aged shelf corporations & provides guidance in choosing the best fit for a client’s individual needs

● Readily reachable for direct questions and rapid turnaround

● Guarantees in writing that the aged shelf corporation has never been used and is absolutely clean

● All paperwork for Certificates of Good Standing and Certified Articles of Incorporation from the state is organized and ready for transfer

This white paper delves into these capabilities in more detail and introduces a vendor of aged shelf corporations that provides clean companies, guaranteed: Wyoming Corporate Services.

Checklist Could an Aged Shelf Corporation be Beneficial to You?

● Do you need to secure asset protection quickly? How about within a couple of hours?

● Do you have equipment or office space you need to lease, but don’t have an incorporation date that qualifies your business for consideration?

● Have you been in business as a sole proprietor for a number of years and are just now incorporating — and hoping to obtain an incorporation date that matches your company’s true tenure?

If you answered “Yes” to any of the above questions, read on to explore how purchasing an aged shelf corporation can save you time and money — and how to determine whether or not you’re dealing with a trustworthy vendor of shelf corporations.

1. What is an Aged Shelf Corporation?

Simply put, an aged shelf corporation is a company formed and metaphorically placed on the shelf to age. Not unlike a wine tucked safely away in the cellar to mature (and improve) over time, an aged corporation should have no activity beyond the maintenance of state fees to keep the company in good standing during its time on the shelf.

This means a truly clean shelf corporation will have no Employee Identification Number (EIN), assets or liabilities, bank account, trade lines, or corporate credit.

Just the seasoned value of time.

Shelf Corporation Formation & Aging Process Entity Formed (2 days – 6 weeks or more; articles of incorporation & bylaws; effective date stamped) –> Placed on Shelf (1 month – over a decade; state fees kept current)

Ownership Transferred (1 day; all articles of incorporation with formation date stamp)

2. All About Convenience

Don’t have time to create a new entity? An aged shelf corporation can be obtained from a good vendor quickly — often within a matter of hours.

Forming a corporation from scratch varies from state to state, with processing times of 1-3 days to 2-3 weeks or more. While this is a quicker turnaround than in years past, there are situations in which it isn’t fast enough; during the purchase of real estate or the settling of an estate, for example.

Once a transaction is initiated, time is of the essence.

Aged shelf corporations have already been registered with the state they were formed in, with all Articles of Incorporation and bylaws detailing how the corporation will be governed in order. This means that the aged corporation can be purchased, all articles transferred, and a business bank account established within a single day.

3. Invaluable Benefit of Time

The older incorporation date that comes stamped on an aged shelf corporation adds the perception of longevity in the marketplace. This seasoning is valuable in creating credibility and the appearance of corporate history, and enhances a company’s ability to position itself to access and bid on contracts, or to obtain leasing agreements.

In the case of a contractor who has operated as a sole proprietor for a number of years but now wishes to incorporate, choosing an aged shelf corporation that corresponds to the actual age of the company in question is key. Ensuring that the incorporation age and business age match can tip the scale favorably when it comes to securing potential customers.

Higher Levels of Privacy & Protection

Aged shelf corporations can be registered in any state as a foreign company doing business in that state. And no other state in the U.S. offers higher levels of business privacy than Wyoming when it comes to protecting assets.

The first LLC statutes in the United States were instituted in Wyoming in 1977 and updated in 2010 to stay relevant. Wyoming has had limited liability companies longer than any other state, and has the strongest laws in the country to protect these businesses. With no legal requirement for the names of shareholders to be filed with the state, this information will never be listed or shared publicly.

Purchasing a shelf corporation that was formed and aged in a state like Wyoming protects not only assets, but an individual’s right to privacy as well.

4. When it Comes to Purchasing an Aged Shelf Corporation, What Should Buyers Look For?

Vendors of aged shelf corporations often list online and can be contacted directly for information and guidance in selecting and purchasing the best fit for an individual’s needs. This easy access is convenient; however, with all the options available, it can be difficult to discern one vendor (and its inventory) from the next.

The rest of this white paper details the key qualities of a truly clean aged shelf corporation, why these qualities are important, and how to identify a trustworthy vendor.

But first: What to avoid.

Not Clean? Not Worth the Risk

A truly clean aged shelf corporation will have no bank account, no tradelines, no corporate credit. It will have no financial history whatsoever.

Why is this important? Because an aged shelf company that comes with a financial history may also have pre-existing debt issues and business transactions that could lead to future liability.

If it’s not clean, it’s not worth the risk.

Corporate credit is not something that can be bought or sold. A vendor who claims to provide shelf companies with corporate credit built in is not selling a clean corporation.

All Fees Kept Current Throughout the Entire Shelf Life.

Steer clear of any vendor that cannot guarantee the aged corporation’s fees have been kept current with the state throughout the entire seasoning period. If at any point during this time the vendor has defaulted on paying state fees, it will show on public record.

An aged shelf corporation that has not been kept in Good Standing can face an unexpected uphill slog if it is allowed, at any point in time, to go inactive — even if back fees are paid and the corporation is brought current before being transferred to a new owner.

What to Look for in an Ideal Vendor

1. The inventory of shelf corporations includes companies that have been aged in multiple states for varying lengths of time; the vendor provides guidance in choosing the aged shelf corporation that best fits a client’s needs.

2. Vendor is readily reachable, on the phone or by email, for direct questions and prompt service.

3. Vendor guarantees in writing that the aged shelf corporation has no assets, tradelines, or liabilities, nor do they have EINs issued; they have never been used and are absolutely clean.

4. The aged shelf corporation should come with Certificates of Good Standing and Certified Articles of Incorporation from the state, with all paperwork organized and ready for transfer in short order.

Fortunately, there is a vendor of aged shelf corporations that fits this bill (and more): Wyoming Corporate Services, Inc.

Wyoming Corporate Services: Clean Companies, Guaranteed

Wyoming Corporate Services, Inc. has an extensive inventory that includes shelf corporations that have been aged in 15 different states for up to 13 years. They have sold thousands of shelf corporations over the past 17 years, and are one of the only vendors in the U.S. to form and age these companies in multiple states.

Each Wyoming Corporate Services aged shelf corporation comes with a Certificate of Good Standing and Certified Articles of Incorporation from the state — documents that are key to ensuring these corporations are pristine.

In addition to guaranteeing their companies have been kept in good standing, with all state fees paid up to the renewal date, a deluxe corporate binder can also be purchased from us.

Rapid Turnaround Service

Wyoming Corporate Services keeps a current inventory of their aged shelf corporations listed on their website, with agents readily available to consult on the selection of a shelf corporation with the location and incorporation date that will best fit a client’s individual needs.

The agents at Wyoming Corporate Services can get a PDF copy of all important articles in the new owner’s inbox in as little as two hours, streamlining the purchase process and unlocking the benefits of the aged shelf corporation immediately.

Best Economic Climate for Business
According to the ​2020 edition of the Tax Foundation’s State Business Tax Climate Index​, Wyoming ranks #1 in both the overall and corporate tax categories. This is because companies formed in Wyoming have no corporate state taxes, business license fees, or officer filing fees.

Wyoming has held this position since 2016.

Because of this, Wyoming is an ideal state to incorporate in. While Wyoming Corporate Services, Inc. has a significant inventory of shelf corporations formed and aged across the U.S., a large portion of their aged shelf corporations inventory were formed in Wyoming as this state has the best economic climate for business.

Public Record Address Service

Purchasing an aged shelf corporation that was formed and aged in Wyoming ensures a higher level of privacy, as the state does not collect or list shareholder information.

Wyoming Corporate Services takes this privacy a step further with their signature Public Record Address Service.

As the registered agents of the shelf corporation, Wyoming Corporate Services, Inc. provides a suite number listed publicly as the principle mailing address of the company — so the shareholder’s own address remains private.

Conclusions

Aged shelf corporations can be beneficial in securing asset protection quickly, accessing contracts or lease agreements, and incorporating after doing business as a sole proprietor for a number of years.

Not all vendors of shelf corporations are equal. In order to safeguard against future liability, it is important to be wary of any vendor who cannot guarantee, in writing, that their inventory of shelf

corporations is truly clean, with all state fees kept current. A vendor who claims to provide shelf companies with corporate credit built in is not selling a clean corporation.

An ideal vendor of aged shelf corporations will provide:

● Certificates of Good Standing and Certified Articles of Incorporation

● Diverse Inventory

● Readily Accessible Guidance Service

● Rapid Turnaround

Selecting a vendor with these key capabilities will save time and money, and ensure that the aged shelf corporation is a good fit for the needs of the client.

To find out more about how you or a client can benefit from aged shelf corporations, visit https://wyomingcompany.com/aged-corporation/​ .

About Wyoming Corporate Services, Inc.

Wyoming Corporate Services has been in business since 2003, with an A+ rating with the Better Business Bureau and over 800 five star reviews on Trustpilot.

Located in Cheyenne, Wyoming, they provide rapid and reliable service for establishing companies and selling aged shelf corporations.

Privacy is a priority and, in order to guarantee their signature Public Record Address Service, Wyoming Corporate Services has secured a 25-year lease on the building they’re based in.

They’ll be there when you need them.

For more information, please visit ​wyomingcompany.com​.

You can see a partial list of aged companies at:

Aged Shelf Companies | Wyoming Shelf Corporations (wyomingcompany.com)

A common use of a Wyoming LLC is to hold real property.  If that property is commercial in nature (e.g., an apartment or office building), there is a greater chance that the LLC could be sued.  When that happens, which laws apply will depend on several factors.

An important factor is, why is the LLC being sued?  Some common possibilities are: 1) an accident or dispute related to the property itself (e.g., a visitor is injured, or a right of way access is disputed); 2) a contractual dispute (e.g., violation of a lease agreement or mining rights contract); and 3) a creditor is attempting to reach the LLC’s assets in order to satisfy a debt of the owner of the LLC.  Additional factors may also be important.

No matter the reason for the lawsuit, it is always important to contact an attorney immediately upon learning of a lawsuit, so that it may be responded to in an appropriate and timely manner.

Usually, if a lawsuit involves an incident or dispute related to the property itself, the proper jurisdiction is the county where the property is located.  The local State’s laws regarding that type of injury or dispute would probably apply.  Thus, if a visitor slips on a banana peel, or a neighbor disputes the location of the boundary that will probably be settled in a local court where the property is located.

If the dispute is contractual, then the contract can determine the proper court and laws to use.  For example, most lease agreements may include a clause that states that the laws of a specific State will apply to determine the validity or enforcement of the contract.  They may also have a clause saying that any disputes will be settled in the courts of a specific county of a specific State.  Virtually any State’s laws and courts may be chosen; Courts will typically honor the agreement of the parties in their contract. 

If a Wyoming LLC owns commercial real property, a valuable tool in asset protection is a lease agreement that is properly drafted to include such clauses. Thus, a Wyoming LLC could own property in New Jersey, but have a lease agreement with tenants requiring lawsuits to be brought in Laramie County, Wyoming.  A lawsuit brought in New Jersey on such a contract could be defended with the argument that it should be dismissed, so that it can be filed in the proper Wyoming court.

If a lawsuit is attempting to seize a Wyoming LLC’s assets in order to satisfy the debt of an owner of the LLC, you should retain an attorney.  Typically, a creditor would need to domesticate the judgment in a Wyoming court. However, Wyoming LLC law limits creditors to a single remedy, that of a charging order. A charging order acts much like a garnishment on an owner’s right to receive a distribution of profits.

If your Wyoming LLC owns commercial property of any kind, it is worthwhile to consult an attorney to be sure any lease agreements or other contracts include language that keeps disputes in Wyoming.  Both the LLC and the contracts can be valuable asset protection tools, if used properly.

Wyoming commercial law provides for a number of LLC tax advantages a number of advantages over companies in other states. You can order an LLC online through Wyoming Corporate Services Inc web site at:

www.wyomingcompany.com

The materials in this article have been prepared by Graham H. Norris, Jr. for informational purposes only and are not legal advice or counsel.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship.  Readers should not act upon any information in this circular without seeking professional counsel.  The information provided herein is provided only as general information, which may or may not reflect the most current legal developments.  This information is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice or to substitute for obtaining legal advice from an attorney licensed in your state.  Graham H. Norris, Jr. does not wish to represent anyone desiring representation based upon viewing this material in a state where this information fails to comply with all laws and ethical rules of that state.  Any review or other matter that could be regarded as a testimonial or endorsement does not constitute a guarantee, warranty, or prediction regarding the outcome of an individual=s legal matter.  The Wyoming State Bar does not certify any lawyer as a specialist or expert.  Anyone considering a lawyer should independently investigate the lawyer=s credentials and ability, and not rely upon advertisements or self-proclaimed expertise.  Graham H. Norris, Jr. is a member of the Bar in California, Utah, Idaho and Wyoming.  For more information, please contact Mr. Norris by telephone at 307-633-3545.

C-Corporations And The New Tax Law of 2018

The tax on C-corporations was cut from a high of 39% to a flat 21% starting on January 1, 2018 by the new tax law.

This sounds great on the surface but in reality if you have a C-Corp that was making less than $50,000 in profit per year, your tax rate on profits has been 15%.  So the passage of the “Tax Cuts and Jobs Act” did not cut your rate it actually increased your tax rate.  But the old C-Corp tax rate increased to 24% on the next $25,000 in profits. So if your corporation makes more than $75,000 the tax rates will be lower, starting in 2018.

So Why Use A C-Corp Now?

A C-Corp is the only type of company you can leave money in and not pay personal taxes on it, while that money remains in the company.  So this type of company is a good way to build up money to purchase other companies, purchase high ticket items, or increase the capital of the company.  And if you can use Wyoming, as the place to have your company formed and operated from, there will not be any state taxes on that money that you leave in the C-Corp.  Keep in mind that if you take profits out of a C-Corp in the form of dividends, you will also pay personal taxes on that money.

The 2018 tax bill changes show that one of the only ways left to save on federal taxes is to own businesses. A business can write off, within certain limits, things like interest, travel expenses, the purchase of business related items and rent. The new law takes out most deductions for individuals, but it leaves in place most deductions for corporations.

If you do not have a business formed now, this is the time to form one.  This is what we do at Wyoming Corporate Services, we help people form businesses.

If you need ideas as to what your business is going to do, please look at our list of aged shelf company names, which may give you ideas as to what you can do. We also offer tips and other strategies on how to benefit from the new tax law.