Wyoming companies cost $50 a annually in state fees.
NEVADA CORPORATIONS AND NEVADA LLC'S COST $150 ANNUAL REPORT & $500 ANNUAL BUSINESS LICENSE
ADVISORY ABOUT THE SECRETARY OF STATE OF NEVADA:
For years, Nevada incorporators promoted that they don’t have an information sharing agreement with the IRS. Nevada sells their information to information clearinghouses and database companies.
NEVADA CORPORATION/NEVADA LLC WARNING:
As of June 1, 2005, all Nevada corporations and Nevada LLC’s mandate a NV State Business License application. This requires disclosure of stockholders, their SSN’s, and % of ownership disclosed. Even if you DON’T do business in Nevada, you must complete the Nevada business license and pay the $100 fee. Proof. Nevada privacy is finished. Wyoming doesn’t require a business license unless you’re a licensed professional (doctor, chiropractor, plumber, etc.).
ADVISORY ABOUT NOMINEE EMPLOYER IDENTIFICATION NUMBERS: DON'T USE A NOMINEE EIN:
There are a few incorporators who sell corporations and LLC’s with Employer Identification Numbers obtained by a nominee. They claim this enhances privacy. Please be advised this is False for the following reasons:
- Any person who applies for an excessive number of EIN’s find themselves a target of the IRS and increases your company’s susceptibility to audits.
- If you apply for the bank account, the bank will ask for your social security number and the EIN of the company. At this point, the bank employee calls the Office of Foreign Assets Control (OFAC) under the U.S. Treasury. The bank will screen the company name/EIN, and your name/SSN, together. The OFAC and US Treasury keeps a record of this inquiry and the EIN, and your SSN, are linked. Therefore, obtaining a “nominee EIN” offers no additional privacy or protection. It’s an un-needed service. This is a federal requirement as mandated by the Patriot Act to screen out lunatic terrorist freaks. If your bank is not requiring an SSN to open the account, the bank employee and the accounts that were set up shall be eventually suspect, or frozen, until a warm body comes to claim the account.
Seeking a wyoming shelf corporation or aged corporation?
Annual Business License | Wyoming Corporation: No | Nevada Corporation: Yes | Delaware: No |
Requires Disclosure of Stockholders to State | Wyoming Corporation: No | Nevada Corporation: Yes | Delaware: No |
Directors, officers, employees & agents are indemnified from liability by statute | Wyoming Corporation: Yes | Nevada Corporation: Yes | Delaware: No |
Stockholders revealed to the state | Wyoming Corporation: No | Nevada Corporation: No | Delaware: No |
One person can hold position of Director, President, Vice President, Treasurer & Secretary | Wyoming Corporation: Yes | Nevada Corporation: Yes | Delaware: Yes |
Capital requirement minimums | Wyoming Corporation: No | Nevada Corporation: No | Delaware: No |
Tax on corporate shares | Wyoming Corporation: No | Nevada Corporation: No | Delaware: No |
Franchise Tax | Wyoming Corporation: No | Nevada Corporation: No | Delaware: Yes |
Initial Filing Fees | Wyoming Corporation: Minimal | Nevada Corporation: Higher fees | Delaware: Minimal |
Annual Fees | Wyoming Corporation: Minimal | Nevada Corporation: Slightly higher | Delaware: Minimal |
Meetings can be held anywhere | Wyoming Corporation: Yes | Nevada Corporation: Yes | Delaware: Yes |
Unlimited Stock, no par value | Wyoming Corporation: Yes | Nevada Corporation: No | Delaware: No |
Shares need not be certificated | Wyoming Corporation: Yes | Nevada Corporation: Yes | Delaware: No |
Continuance, to adopt a corporation formed in another jurisdiction | Wyoming Corporation: Yes | Nevada Corporation: No | Delaware: No |
Unlimited Shares, no par value | Wyoming Corporation: Yes | Nevada Corporation: No | Delaware: No |
Aged Shelf Corporation | Wyoming Corporation: 2/3 cost of NV | Nevada Corporation: Expensive | Delaware: Best solution for very large corporations |
Nevada Corporation Downside: Expenses and filing fees are 1/3 higher than Wyoming.
Forming a Wyoming Corporation affords you the following:
Lower expenses than Nevada (about 1/3 less), a friendly, pro-business environment, friendly and diligent banking, and flexible stock ownership.
Both corporations can accomplish the same objectives in terms of financial privacy and asset protection. Both states respect stockholder rights and property.
Wyoming Disclosure: Wyoming corporations must declare all assets in Wyoming on the annual report. Obviously, if the Wyoming corporation has no assets in Wyoming, then declare nothing.
To avoid listing these assets, simply hold assets outside the state of Wyoming. This is an easy solution.
Can’t make up your mind between the Nevada corporation and the Wyoming corporation? The truth is that most stockholders, or even the incorporators, don’t take advantage of the strengths of either. The differences are subtle between the two states but important for those interested in maximum protection. The lay person won’t know the difference. This is why you should call 307.237.2580 for a free consultation on how to maximize your advantages with either a Nevada or Wyoming corporation.
Delaware Corporation Strengths and Weaknesses: Delaware offers a vast case history. Stockholder rights are the strongest and most clear cut for any corporation going public. Delaware is the best state to incorporate for the publicly held corporation. In terms of incorporating for the small business person, this is an inferior state in comparison to Nevada and Wyoming.
Read information on choosing the best structure for your needs: S Corporation? C Corporation? Limited Partnership? Limited Liability Company?