Delaware, Florida, Montana, Nevada, and Wyoming LLC’s and Corporations?

#1 The first question that is always asked is why should this be considered?

1. There are certain states that offer tremendous tax, compliance, asset, and legal advantages
   above and beyond the rest. From the above states, Wyoming and Nevada have no state or corporate tax. This is an obvious advantage not just in revenue but as well within the scope of not having the cost and time of filing a corporate state return. In lieu of this you will typically file a report that can be done online in a matter of minutes. So do you want to operate within a state that has mandatory state filings or none at all?
2. These states are extremely pro-business. Some states offer absolute protection that is makes it nearly impossible for the courts to order the dissolution of your business short of fraud which means that you are personally much more protected. This is of course a tremendous benefit if you are operating in a litigious business space wherein frivolous lawsuits are prevalent and of course wherein the state does allow the courts to order to dissolve your business. A state such as California states that they will honor the corporate code of the state to which you organized or incorporated your business whether that is California or another. So which state do you want to form yours in?
3. Anonymity is offered in states such as Nevada wherein only one officer is needed to be listed publicly and Wyoming wherein no officer or member information is needed to be made public. This of course as well makes you more bulletproof with respect to lawsuits if no one knows whom you are. So would you prefer to have your personal name a matter of public or not? *An additional consideration amongst many others is the minimum corporate tax. In California it is $800 versus $450 in Nevada and $50 in Wyoming.

#2 But what if I am not physically located in those states? Considerations

1. The IRS allows each business to be setup and established in any of the 50 states.
2. Attorneys often say no to this as they do not get paid more for saying yes and as well your accountant has a lot financially to lose by not helping you organize out of state, while at the same time they have a fiduciary responsibility to you to advise you to maximum advantage using all legal and ethical methodologies. Remember you will still pay your personal taxes in your home state just as you would any other way and since most business owners elect to have pass through taxation paid at the personal level, this is how your business will indeed pay its taxes anyway.
3. This has been done by many many companies some of which are even older than this country. You’ll notice that banks are often set up this way. The loan origination center is physically located in one state, the processing in another, and the payment center in another while despite all of this the headquarters is listed in another state. And whether you agree with it or not, the Supreme Court has made a recently controversial ruling in essence upholding this ongoing practice. All of this means that this is a most common practice amongst those in the know.

#3 So HOW do I do this? Logistics

1. You will need to issue your articles of organization or articles of incorporation. If you are forming your business out of state, you will need to setup a registered agent before your articles can even be signed off on. You will as well need to register your entity with your physical state. You will as well need to file for an EIN, execute your Operating Agreement, properly establish a business bank account, and file either a form 2553 or 8832 if you chose to avoid default IRS status.
2. You will need to maintain your compliance items both in your state of formation and as well your physical state. Your business state will require an annual renewal of your registered agent, and an annual report. If you are a corporation, annual meetings and other formalities will be required.
3. While there is more, to get very affordable help with this visit our LLC Builder, as we can help you too.

Learn more about each state's specific benefits:

• Wyoming
• Delaware
• Florida
• Montana
• Nevada

**Remember each and every Corporation and LLC actually exists and resides within their bylaws or operating agreement which is the heart and soul of a corporation or llc. Without good, solid by-laws or operating agreement, you really do not have a corporation or llc.

***This blog is for educational purposes only and as such you are advised to seek out and consult with your legal and tax advisors prior to engaging in any decision making affecting your business.