for a shelf corporation, 12 yrs old: Request the
Form a Delaware Corporation or Delaware LLC if you intend to go public
with an initial offering. Large companies, traded on an exchange, are best served by
On the contrary, a Wyoming corporation or Wyoming
LLC is the best option
for the small and family-run business.
Unless you're planning to run another
Amazon.com, IBM, Microsoft or other large corporation, then you're best
option is Wyoming.
Wyoming has a great respect for property rights of
the small business person, provides secure limited liability protection,
excellent privacy and there's no tax income tax for companies doing
business in Wyoming. There's no report of ownership of a Wyoming
company to the Wyoming Secretary of State. Wyoming has a financial
surplus with no income tax. This is because the taxes on mineral
rights and a local sales tax pays the bills. Wyoming is
pro-business, pro-property rights, pro-family, and self-sufficient.
It's a state where the Constitution and the rule of law is widely
respected. Wyoming is a state where family, hard-work and the
small business person is King. Wyoming is now what America was,
before it became a trough of welfare programs and a socialist
In 1977, Wyoming was the first state to pass a Limited Liability Act.
This was the first time the Limited Liability Company (LLC) was
introduced to American business. Once the IRS recognized the LLC can be
taxed as a partnership (that is, as a pass-through entity), all 50
states passed statutes creating their own version of the LLC.
Why a Wyoming LLC?
Wyoming LLC Statute 17‑15‑145. Rights
order is the exclusive remedy by which a judgment creditor of the member
or transferee may satisfy a judgment against the member's interest in a
limited liability company.”
The Wyoming LLC: The Assets Are
Made Unattractive To The Creditor
The manager of the
Wyoming LLC can refuse to distribute the earnings. (If the operating agreement
so allows.) What is the advantage of withholding the distribution from
the hostile creditor?
This means that the
creditor is now liable for income taxes on those Wyoming LLC earnings, whether
or not they’re distributed. The hostile creditor is now liable for
taxes on earnings not yet received or for what is typically referred to
as “phantom income.” This places the member in a stronger position to
negotiate a favorable settlement. Hostile creditors don't want to pay
taxes on earned income that's out of reach.
For this charging
order protection to be most effective, the Wyoming LLC must
least two (2) members [Important!] in the Wyoming LLC
Managers can be people
or another business.
Wyoming LLC is taxed
as a partnership
Wyoming LLC is
managed by a manager, not the members. [Important!]