Wyoming, Delaware or New Mexico, please tell me what's your choice?

[Spinat]

I want to know what your choice is and why you prefer one over the other. Personally I know Delware and Wyoming and figured out to suck all benefits out of these states in regards to tax reduction, company setup and banking.

Wat is your opinion about these three tax havens ?

 

[exprtadvisrdev]

I heard once that if the objective is to create a disregarded entity LLC then it will be the same since all three are almost the same for that kind of company. That the only important thing to know is how much does it cost to keep the business operating in each state. Cheapest is New Mexico, but I went with Wyoming because they are little more in the crypto business (but to be honest I haven't use that "benefit" so I don't know if is true).

To banking, I haven't traveled there to know how difficult is to open a bank account but I haven't got any issue with TW and Mrcury with my WY LLC.

BTW, I'm not a big fish so I don't know if WY is a pain in the a*s as soon as you start making a lot of money.

 

[DSCorp]

Cheapest is New Mexico, but I went with Wyoming because they are little more in the crypto business (but to be honest I haven't use that "benefit" so I don't know if is true).

To banking, I haven't traveled there to know how difficult is to open a bank account but I haven't got any issue with TW and Mrcury with my WY LLC.

BTW, I'm not a big fish so I don't know if WY is a pain in the a*s as soon as you start making a lot of money.

Like you I am inthe United States.
I have a question regarding that, and looks like I can't start a thread yet, so maybe one of you guys can help me.
As a start up crypto wallet and broker looking for VC funding, is incorporating in the States better than going offshore?
I initially was looking at offshore with no US clients, but now I have MTL coverage in most states, I'm not sure what would be most advantageous in getting funding. Basically what "looks" better?

 

[CaptK]

I found Delaware very easy to use its 300 per year "tax" but other fees comes to about 500 all in. Set up was 800 including 1st years fillings.
Opening a TW and Mercury was very easy I was also able to open a Wells Fargo Account but this was done by using the invoice of the Hotel as proof of address. 18 months later it was closed down and they transferred the money back to me no problem.

 

[DSCorp]

I found Delaware very easy to use its 300 per year "tax" but other fees comes to about 500 all in. Set up was 800 including 1st years fillings.
Opening a TW and Mercury was very easy I was also able to open a Wells Fargo Account but this was done by using the invoice of the Hotel as proof of address. 18 months later it was closed down and they transferred the money back to me no problem.

Who did you use for the Delaware incorporation?
Btw, what is TW and Mercury?
EDIT: Just found Mercury, but who is TW?

 

[CaptK]

Like you I am inthe United States.
I have a question regarding that, and looks like I can't start a thread yet, so maybe one of you guys can help me.
As a start up crypto wallet and broker looking for VC funding, is incorporating in the States better than going offshore?
I initially was looking at offshore with no US clients, but now I have MTL coverage in most states, I'm not sure what would be most advantageous in getting funding. Basically what "looks" better?

What is MTL?

 

[DSCorp]

What is MTL?

Money Transmitter License (a US state by state required license necessary to have US customers buy and sell cash and/or crypto).

 

[Spinat]

You are hijacking my threa @Aziz that's a really bad start you are making here @Admin can you please clean it?

You can open a thread from the very beginning so there is no need to hijack other peoples thread.

Cheapest is New Mexico, but I went with Wyoming because they are little more in the crypto business (but to be honest I haven't use that "benefit" so I don't know if is true).

do you use this company or not and if so what crypto exchange do you use.

 

[DSCorp]

You are hijacking my threa @Aziz that's a really bad start you are making here @Admin can you please clean it?

You can open a thread from the very beginning so there is no need to hijack other peoples thread.


do you use this company or not and if so what crypto exchange do you use.

My apologies, I need to look around further for how to open a thread.

 

[Tax Cow]

LLCs are very similar across the states because they typically inherit from the federal legislation. That said, there are minor, but sometimes quite impactful differences.

1. Delaware - stands out with the best range of services aimed at non-residents. But the state is known as a tax planning whorehouse which can damage your rep., depending on where and how you do business.

Consider if:
- You want a business account with a high street bank in the U.S. but can't travel yourself. Streamlined and very professional remote PoA account opening services available online.
- You want to incorporate as INC to engage outside stakeholders/investors. A Delaware inc is a well-known and widely accepted vehicle among venture capitalists.

2. Wyoming - Semi-known tax planning whorehouse with fewer services available. Particularly lacks professional lawyers who open business bank accounts to non-residents under PoA. Stands out positively in single member LLC liability protections.

Consider if:
- You are a single member pass-through LLC and want the best liability protection available.

3. New Mexico - Just don't see the point. Low price?

Consider if:
- You're broke to a point where every dollar counts.
- Mass incorporation. You're in need 100+ LLCs and the cost starts to play a bigger role.

I'll add in one more interesting option not many people consider.

4. New York - The opposite reputation of Delaware. Oozes compliance, thick bueraucracy, and heavy tax. Depending on where and how you do business, this can be beneficial.

Consider if:
- You want the very best LLC reputation dollars can buy in the U.S. In effect, it's tax exempt after a certain point for the non-resident beneficiary, just like Delaware, assuming that you don't have ECI, FDAP from the state of New York or the U.S. Extra state fees and other costs could anyhow add up to another $5K a year in extreme cases, but it's a price well worth it for sharing a bed with a good girl.

Good luck utilizing the U.S., and don't forget that the annual filing obligations should be taken seriously in the U.S.

 

[DSCorp]

LLCs are very similar across the states because they typically inherit from the federal legislation. That said, there are minor, but sometimes quite impactful differences.

1. Delaware - stands out with the best range of services aimed at non-residents. But the state is known as a tax planning whorehouse which can damage your rep., depending on where and how you do business.

Consider if:
- You want a business account with a high street bank in the U.S. but can't travel yourself. Streamlined and very professional remote PoA account opening services available online.
- You want to incorporate as INC to engage outside stakeholders/investors. A Delaware inc is a well-known and widely accepted vehicle among venture capitalists.

2. Wyoming - Semi-known tax planning whorehouse with fewer services available. Particularly lacks professional lawyers who open business bank accounts to non-residents under PoA. Stands out positively in single member LLC liability protections.

Consider if:
- You are a single member pass-through LLC and want the best liability protection available.

3. New Mexico - Just don't see the point. Low price?

Consider if:
- You're broke to a point where every dollar counts.
- Mass incorporation. You're in need 100+ LLCs and the cost starts to play a bigger role.

I'll add in one more interesting option not many people consider.

4. New York - The opposite reputation of Delaware. Oozes compliance, thick bueraucracy, and heavy tax. Depending on where and how you do business, this can be beneficial.

Consider if:
- You want the very best LLC reputation dollars can buy in the U.S. In effect, it's tax exempt after a certain point for the non-resident beneficiary, just like Delaware, assuming that you don't have ECI from the state of New York. Extra state fees and other costs could add up to another $5K a year in extreme cases, but it's a good price for what I'd call "sharing a bed with a virgin."

Good post! How do those scenarios differ with an S-Corp?

 

[Tax Cow]

Good post! How do those scenarios differ with an S-Corp?

Is S-corp available to a non-resident living outside the U.S?

I'm not familiar with the S-corp as I only ever used C (Inc) and pass-through (llc).

 

[DSCorp]

Is S-corp available to a non-resident living outside the U.S?

I'm not familiar with the S-corp as I only ever used C (Inc) and pass-through (llc).

I believe so, but I will check later. Hopefully that helps the OP further.

 

[CaptK]

LLCs are very similar across the states because they typically inherit from the federal legislation. That said, there are minor, but sometimes quite impactful differences.

1. Delaware - stands out with the best range of services aimed at non-residents. But the state is known as a tax planning whorehouse which can damage your rep., depending on where and how you do business.

Consider if:
- You want a business account with a high street bank in the U.S. but can't travel yourself. Streamlined and very professional remote PoA account opening services available online.
- You want to incorporate as INC to engage outside stakeholders/investors. A Delaware inc is a well-known and widely accepted vehicle among venture capitalists.

2. Wyoming - Semi-known tax planning whorehouse with fewer services available. Particularly lacks professional lawyers who open business bank accounts to non-residents under PoA. Stands out positively in single member LLC liability protections.

Consider if:
- You are a single member pass-through LLC and want the best liability protection available.

3. New Mexico - Just don't see the point. Low price?

Consider if:
- You're broke to a point where every dollar counts.
- Mass incorporation. You're in need 100+ LLCs and the cost starts to play a bigger role.

I'll add in one more interesting option not many people consider.

4. New York - The opposite reputation of Delaware. Oozes compliance, thick bueraucracy, and heavy tax. Depending on where and how you do business, this can be beneficial.

Consider if:
- You want the very best LLC reputation dollars can buy in the U.S. In effect, it's tax exempt after a certain point for the non-resident beneficiary, just like Delaware, assuming that you don't have ECI, FDAP from the state of New York or the U.S. Extra state fees and other costs could anyhow add up to another $5K a year in extreme cases, but it's a price well worth it for sharing a bed with a good girl.

Good luck utilizing the U.S., and don't forget that the annual filing obligations should be taken seriously in the U.S.

You my friend are a genius, I looked into California and got discouraged with all the extra fees. I gave up looking into others. New York from a credibility and cache point of view is priceless.

 

[exprtadvisrdev]

do you use this company or not and if so what crypto exchange do you use.

Yes I'm currently working with this LLC and I'm not using crypto exchanges at this moment (but I used Coinbase last year and it was OK with the usual KYC and AML).

 

[DSCorp]

Is S-corp available to a non-resident living outside the U.S?

I'm not familiar with the S-corp as I only ever used C (Inc) and pass-through (llc).

OK I confirmed, non-US citizens cannot be shareholders in an S corp.

 

[JohnLocke]

Yes I'm currently working with this LLC and I'm not using crypto exchanges at this moment (but I used Coinbase last year and it was OK with the usual KYC and AML).

Can I ask, what EMI do you use for this company or is it a real bank ?

 

[Marzio]

If you are a non-US resident LLC's won't do you any good because you won't be able to keep a PayPal account nor Stripe. Happy to be proved wrong.

 

[Sadhu]

If you are a non-US resident LLC's won't do you any good because you won't be able to keep a PayPal account nor Stripe. Happy to be proved wrong.

You can have Stripe if you use their Atlas service and incorporate a company using their service - done it myself.

 

[Marzio]

if you use their Atlas service

They set you up with a C-Corporation that is tax resident in the US, I don't know about you but i'm not interested in paying US corporate taxes.