Where You Should Incorporate
Nevada vs. Wyoming
Wyoming state fees are 92% less than Nevada’s! Just add that to Wyoming incorporation advantages. You can pay $1000 to form a Nevada LLC, but be sure and include the Nevada “hidden” officer filing fees of $125 that you learn about only after you start your company there. Then, Nevada will hit you a fee within 30 days after you start your company, and the $150, or more, filing fee based upon how many shares you want to be able to issue. Oh, and add to that the state business license fee of $500 per year for a Nevada corporation! You are going to be paying at least $725 per year, or more, in Nevada for a corporation, before any other services!
Wyoming has no business license fees or officer filing fees. This means we can deliver a quality company package for much less than you would pay in Nevada. And, your Wyoming state renewal fee is $62, in most cases, 92% less than what you will pay in Nevada. And, the nice thing about Wyoming is that is not the only reason to incorporate here. Wyoming is one of the most cost-effective states to incorporate in and also to maintain in the following years. We even offer aged shelf companies for sale.
According to the new 2021 edition of the Tax Foundation’s State Business Tax Climate Index, “Wyoming has the most business-friendly tax system of any state,” for the past 10 years in a row.
Perhaps you’re one of those who have read all the websites that promote incorporating in Nevada. Here are some reasons explaining why we think Wyoming is the best state to incorporate:
1. Nevada does not share information with the IRS.
Wyoming Answer: Nevada makes the IRS mad. Wyoming does share information with the IRS, but only the information given by companies with real assets inside the state. So the IRS is not targeting you because you are in a non-friendly state (like they may in Nevada).
2. Nevada allows bearer shares.
Wyoming Answer: Nevada’s law did not say anything about bearer shares, but that law was changed in 2007 to disallow bearer shares. If you think you need bearer shares, call us first. You are most likely being misled. All states have outlawed bearer shares.
3. Nevada has privacy.
Wyoming Answer: Go to the Secretary of State of Nevada’s website and type in a person’s last name and/or the first name. You will see a list of all companies that person is a part of in Nevada. Go to the Secretary of State of Wyoming’s website and you will find that the only way to search on a company is by company name. You cannot search using a person’s name.
4. No taxes in Nevada.
Wyoming Answer: No state income taxes on people or companies in Wyoming and Wyoming is not considering any–, there are Nevada corporation taxes. Nevada has installed a corporate gross receipts tax (no deductions allowed), for some corporations. That will mean that some companies in Nevada will pay more in state taxes than they would in California! In fact, some Nevada companies will be paying one of the highest state taxes in the nation!
Don’t gamble on Nevada; research Nevada incorporation myths.
Exploding the Delaware Myth
You may have heard that Delaware is the “incorporation capital” of America. It’s true! More than 60% of Fortune 500 companies are incorporated in Delaware. If you own a Fortune 500 company (and for your sake, we hope you do) then, by all means, you should strongly consider incorporating in Delaware. However, if you are a small- or medium-sized business that is more concerned with tax benefits, flexibility, privacy, and a minimum of bureaucracy and “red tape,” then Wyoming is the clear choice for you.
You see, Delaware has an excellent body of corporate case law spanning 110 years regarding such matters as management/shareholder issues and mergers/acquisitions. That’s precisely why the Fortune 500 are drawn to the state of Delaware. Delaware laws tend to be “pro-management” when it comes to minority shareholder disputes. Huge public companies have literally hundreds of such disputes pending in the courts on any given day. So, if you are managing a Fortune 500 company, Delaware’s case law offers many insights into what you can and cannot do, and what the likely consequences may be. Unfortunately, Delaware also has a corporate income tax, personal income tax, a state franchise tax, reporting requirements, and regulations compelling disclosure of substantial amounts of information resulting in far less Delaware LLC privacy for you. We are always surprised at how many otherwise knowledgeable professionals advise their small business/ entrepreneur clients to incorporate in Delaware. Well-intentioned though it may be, it is not most likely sound advice.
Perhaps you’re one of those who received such advice and have incorporated your business in Delaware. It’s not too late! Refer to the preceding section and you will see that we can easily “move” your company to Wyoming and enjoy the advantages while preserving the original incorporation date.
Compare states easily with the Wyoming vs. Nevada vs. Delaware LLC chart below.
A Side by Side Comparison of Wyoming and Nevada and Delaware
|No state corporate income tax|
|No public listing of the names of members or managers in an LLC|
|No franchise tax|
|Minimal annual fees|
|A one-person corporation is allowed|
|Stockholders are not revealed to the State|
|No annual report is required until the anniversary of the incorporation date|
|Unlimited stock is allowed, of any par value|
|Share certificates are not required|
|Minimal initial filing fees|
|No minimum capital requirements|
|Meetings may be held anywhere|
|Officers, directors, employees, and agents are statutorily indemnified|
|Continuance procedure (allows Wyoming to adopt a corporation formed in another state)|
As you can see from the above list, when comparing Nevada vs. Wyoming incorporation advantages, Wyoming has several that Nevada does not.
Also, with the changes that Nevada has made to its laws, in 2003, 2005, 2009, 2012, 2015, 2017, and in 2019, Wyoming has become the best state in the nation to incorporate.
If you are comparing prices, Wyoming is about 65% less to incorporate in than Nevada.
Don’t gamble on Nevada passing more laws that could cost you more taxes after you incorporate there. Contact us to start your company in the best state to incorporate today!