Delaware Corporations or Wyoming Corporations?
DELAWARE CORPORATION VS. WYOMING CORPORATION
Delaware Corporation or Wyoming Corporation? Delaware Corporation or LLC?
DOES WYOMING MEASURE UP?
Delaware has a strong marketing engine and they cater to big business. Delaware is the best place to incorporate if you run a large corporation.
We believe that the small business person deserves more protection than what is offered in Delaware. Yes, we all aspire to make it big. But it’s better to have a small business. Although you may not have a business jet; you may have your family, health or love. Running a large corporation often requires sacrifice of family, health or love; or all three. We believe it’s better to be a small business owner. Wyoming best serves small business. Delaware serves big business. And lately, many of the values of big business are anti-American. Big business exports jobs overseas. Big business brings in foreign oil, Chinese products, poison drywall, poison toys, genetic food and other problems that adversely impact Americans. And these big businesses are served by Delaware.
Small businesses think local, they think American, they focus on the American consumer, and they hire Americans. Wyoming understands this and rewards all small businesses that do business in Wyoming. Wyoming offers a 0% income tax, pro-business environment, strong limited liability and respect for privacy. When it comes to serving the small business owner, Delaware can’t compete with Wyoming.
Even now, Delaware sells many more companies than Wyoming. But this is no popularity contest. This is about your goals, your dreams and choosing the best corporation, or LLC, to meet your objectives. If your business is small business, then Wyoming is your best choice. The herd mentality will lead to Delaware because that’s where everyone else is doing.
IS IT BETTER THAN DELAWARE?
LLC Taxation As Partnership
The Limited Liability Of A Corporation
The LLC offers the pass-through taxation of a partnership and the limited liability of a corporation.
LIMITED LIABILITY COMPANY
Once the charging order is obtained, the hostile creditor is now first line for any future distributions that are usually paid out to the member(s).
The Assets Are Made Unattractive To The Creditor
The manager of the 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 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.