One of the major ways that the Internet has influenced modern life is that it’s made your average small business owner much more business savvy. At one time, you had to go to business school or subscribe to business publications in order to improve your entrepreneurial skills. Nowadays, however, a wealth of important information on these matters is but a mouse click away.
Perhaps that explains why more and more business owners are deciding to incorporate in Wyoming instead of forming an LLC in Nevada. At one time, forming a Nevada LLC was a popular business move. Nevada was widely known to have few or no taxes for corporations and a tendency to withhold information from the IRS. However, if you compare Wyoming vs Nevada LLC formation, you will find Wyoming offers just as many advantages as Nevada, and in many cases, is actually a better place to form a corporation.
In Wyoming, you will find that there are minimum annual fees, whereas Nevada tacks them on in unsuspecting places. Another plus to incorporating in Wyoming is that no annual report is required until the anniversary of the incorporation date. Incorporating in Nevada also has disadvantages such as its relationship with the IRS: because Nevada has battled the IRS for years, often times, Nevada shareholders and corporate officers are targeted for audits, whereas Wyoming has a positive relationship with the IRS, but only shares information on companies with real assets inside the state. You can learn more about the difference between Nevada vs. Wyoming incorporation here.
As you may or may not know, an LLC is a particular type of corporation. Unlike a C-Corporation or S-Corporation, an LLC (a Limited Liability Company) is different in that it may decide to pass losses and gains onto its members, thereby avoiding double taxation. Another reason to form an LLC is that it’s by far the best type of corporation to start with and can easily be converted into a C-corporation later on.
How to Form an LLC
The process of forming an LLC can be rather complicated. For instance, there are several steps that must be completed in order to form an LLC, and many of them require filling out and filing complex forms and documents. If sorting your way through administrative paperwork has never been your strong point, then forming an LLC on your own might prove rather difficult.
For instance, the first thing you’ll have to do is choose a business name that’s currently available and complies with the state’s LLC rules. Then you’ll have to file all the articles of organization and pay the state filing fee just before you create an LLC operating agreement. This agreement must be legally sound and identify all the rights and responsibilities of the LLC members.
If you decide to form your LLC in Wyoming, Wyoming Corporate Services can be of assistance. Our “New Wyoming LLC” package contains all the services you’ll need to form an LLC, including one full year of registered agent services, all state filing fees, LLC name check, the Wyoming Certificate of Good Standing, certified articles of organization, and more. At Wyoming Corporate Services, you can also count on personalized attention from our very experienced and knowledgeable account executives.