WHEN IS IT A GOOD IDEA TO USE A WYOMING VIRTUAL OFFICE
A Wyoming virtual office is a good idea if you simply want to do business from Wyoming and you don’t need a business loan to get things done. An online business based in Wyoming, or a Wyoming company, that holds financial or real estate assets, are good examples when you really want to do business from Wyoming with a Wyoming address.
A virtual office can work for you as long as you’re not applying for business credit. When applying for a business loan, the bank wants to see that the company is filed in the same state as your driver’s license. Doing business with a Wyoming company is an excellent choice to protect your assets. If you’re seeking financing, you should file the Wyoming company in the state where you live. Therefore, don’t obtain a virtual office in Wyoming if you’re building business credit.
When is a Wyoming Office a good idea? When you seek some of the following:
1. To do business from Wyoming from a business building–not someone’s house!
2. Choice of jurisdiction. You have a choice. Wyoming has no state income tax and there’s no ownership reported to the State of Wyoming. It only makes sense to do business from Wyoming if that works for you. As you know, you can’t have a brick and mortar business in New York but do business in Wyoming. But you can do business from Wyoming if you have an online business.
3. You don’t want to telegraph online your home address or the business address that’s linked to you.
4. You seek to start your own business and your employer may not be happy with the idea.
Employers want your undivided attention. They are not happy if you’re looking to start your own dream. After all, they want you to build their dream–not yours. You can start with an online business, a Wyoming address, and use our Contract Officer services to keep your name off the public record. You apply for the EIN and the bank account. Your name just doesn’t show up online unless you want it to. With Wyoming, you have options.
5. In combination with the Wyoming Virtual Office, consider using these key phrases on your website and your order forms, and other disclosures that require a customer agreement.
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“All sales are approved in Wyoming.”
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“All disputes are handled in Wyoming.”
6. You seek to start a separate business with a separate address.
7. You seek to protect your assets involving a separate address from your other Wyoming company.
WHEN IS IT A BAD IDEA TO USE A WYOMING VIRTUAL OFFICE
Usually, a virtual office is not the best option to build business credit. As far as credit is concerned, the banks want to see that the company is residing in the same state as where you reside. Banks like consistency when they are loaning money. If they don’t match, you may need to file the company to do business in the state where you live. This means that obtaining a virtual office for building business credit is not the best idea. You may need to file the company in the state where you live and obtain an office address there.
A VIRTUAL OFFICE WORKS BUT IT IS NOT A GOOD IDEA FOR BUILDING BUSINESS CREDIT. LET’S EXPLORE.
1. Regardless of who owns the virtual office and how they run that virtual office, the office center is considered high risk to banks who consider lending your company money. In today’s data drenched environment, companies such as DNB and the banks consider all virtual office addresses high risk. Why? Simply because there are so many businesses using the same address. Even when private investigators are searching for a person and come across a UPS Store address or other mail center at a strip mall, those addresses are all flagged as high risk. Yes, that’s unfair. The address is legitimate and it’s legal. How does this happen? This appears to be an arbitrary decision by DNB and many banks. But also, data companies willfully label these addresses as high risk as well.
2.. Certain address may be associated with a high number of loan defaults on credit cards, business loans and other related financial activity. Once a certain address hits a certain number of loan defaults, the address is then considered high risk. Then using that address is high risk because you’re running the risk of labeling your business “high risk.”
3. You likely don’t live in Wyoming. The State of Wyoming may be the best place to run your online business. But it may not be the best place to operate if you want to build and seek business credit. The banks prefer the company is operating out of the same state where you live. Therefore, the company would then file to do business out of state where your driver’s license indicates that you live. In such a case, Wyoming is great for an online business but not so great in applying for business credit.
4. When it comes to applying for business credit, the States of Delaware, Nevada and Wyoming produced a great deal of companies that defaulted on loans from 2006 through 2010. Banks now increase their loan examination of corporations and LLC’s from Delaware, Nevada and to some extent–Wyoming. So, if you’re seeking to apply for business credit, consider using a corporation from Montana or New Mexico instead. Montana and New Mexico are not considered states that produce a large number of shelf companies. Call 484.256.4563 or email Assetprofile@gmail.com for a list of available aged companies from Montana.
Let’s review:
1. Wyoming virtual office is great if you have an online business in Wyoming, or if you seek to do business from Wyoming.
2. Wyoming virtual office is not a good idea if you’re seeking to build business credit. (You’re actually better off with a Montana corporation filed to do business in your state.)
3. Virtual offices everywhere are flagged due to the large number of businesses that use those address to receive mail, and due to loan defaults as they are associated with certain addresses.
This means that the scope of virtual office out of Wyoming is best for businesses that are online and don’t involve the application for business credit.
What is the purpose of a shelf corporation?
Shelf Corporation Purpose #1: The shelf corporation is used to assume a business history. INFO >
Shelf Corporation Purpose #2: The shelf corporation eases the start-up of a business when needing to establish business credit. Certain companies are known to lease to small businesses that are at least six months old. Establishing corporate credit is easier with local suppliers. In that sense, buying a shelf corporation with at least six months of age is of great help.
Only buy an aged shelf corporation, or “aged corporation”, when there’s a real benefit from using such an entity.
Example A: Wanda seeks to open a gift shop. An aged corporation may only help her in terms of dealing with new suppliers. Customers don’t really care whether they buy a gift from a store that has no business history. A retail operation that deals in jewelry, electronics, or other specialty item may be different; however, because follow-up is important. The customer may feel that an business that with a history is more stable than one without. This may make or break sales.
Example B: Mike is starting an internet-based consulting firm catering to small businesses. His clients will ask him how long he’s been in business. Even though his business may be new, buying a two year old corporation may help him build instant credibility. On the contrary, Mike’s many years of experience may speak volumes for him instead of relying on an aged corporation.
Ask yourself whether the age of the corporation is important to your clients or your creditors. If so, buying an aged corporation may be of benefit. Ultimately, how you sell yourself and your products/services will clinch the deal, regardless of whether you buy an aged corporation.
Shelf Corporation Purpose #3: Shelf corporations are ideal when action must be taken immediately. INFO >
Shelf Corporation Purpose #4: There are promoters of shelf corporations that advocate the use of aged shelf corporation for the repair of credit, or an alternative form of credit for those who are credit challenged. INFO >
Shelf Corporation Purpose #5: A contract was entered into in the name of a corporation to be formed and an unforeseen liability has surfaced. INFO >
CALL 307.237.2580 FOR A CONSULTATION ON SHELF CORPORATIONS
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