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Wyoming vs all others

Who should form a Corporation in which State

Wyoming

Wyoming offers attractive tax benefits, privacy protection, strong asset protection, and simple registration. Its perpetual company existence policy supports long-term planning and growth.

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Other States

Choosing a state other than Delaware may offer local advantages, easier compliance with state-specific regulations, access to regional resources, and targeted incentives tailored to local industries.

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Wyoming Pros & Cons

  • Tax benefits > Wyoming has no corporate or personal income tax, no franchise tax, and low sales and property taxes, making it attractive for businesses

  • Privacy protection > Wyoming allows anonymity for company owners and directors, providing greater privacy for management

  • Asset protection > The state offers strong asset protection, including favorable laws for creating and maintaining Limited Liability Companies (LLCs) and charging order protection

  • Efficient registration process > Forming a company in Wyoming is straightforward, with low filing fees and a streamlined process for business registration

  • Continuity > Wyoming allows for the perpetual existence of a company, which can be beneficial for long-term planning and growth

  • Limited recognition > Wyoming's reputation as a business-friendly state is growing, but it may not yet have the same level of prestige or recognition as Delaware. This could impact the perception of your company by investors, clients, or partners

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Delaware use cases

Maria started a US e-commerce business from abroad

Wyoming is an attractive option for online businesses, with no physical locations, in which the owners are based outside the US. Wyoming’s low taxes and annual maintenance fees combined with privacy and asset protection rules make the state a great choice for location independent foreign-owned businesses.

Elizabeth formed her holding company in Wyoming

Elizabeth formed a Wyoming holding company which holds interest in all her other companies and through which she invests in new ventures. Wyoming’s privacy and asset protection laws make it a great state for forming a holding company for your real estate, technology, or other investment business.

Other States Pros & Cons

  • Local presence > For businesses primarily operating in a particular location, forming a business in that state simplifies compliance with state-specific rules and helps establish a local presence

  • Access to resources > Certain states may offer a larger talent pool, more industry hubs, and better access to partners, investors, and service providers in your industry

  • Innovation > Depending on your industry, some states may offer a stronger presence of industry leaders and peers, thereby fostering a more innovative business environment

  • State-specific incentives > Some states offer incentives and financial programs to support businesses in certain industries, such as tax credits, grants, and loans

  • Prestige and credibility > Forming a company in a particular state can boost your company's image If that state is widely recognized as a leader with an influential business community in your industry

  • Taxes and regulation > Many states are known for high tax rates and a complex regulatory environment which can be challenging for businesses

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Other states use cases

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Milosh started an e-commerce business in California

Milosh chose California for his e-commerce startup because he resides in the state. By forming his company in his home state, he is able to simplify compliance and thereby save on annual company maintenance costs.

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Blair started a fashion brand in New York

Blair formed her fashion company in New York because of New York’s reputation as fashion capital and because she knew her first boutique would be located in New York city. By forming her company in the state where her physical business is located, she is able to reduce compliance costs while taking advantage of the incredible resources offered to fashion companies in New York.

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