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

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stevy777

Active Member
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.

sounds awesome with that heavy tax, and lots of compliance red tape, but would I be able to pay more tax somewhere such as California?
 

Chris99

New member
Hello,
I need 2 companies to use as a partner for a UK LLP, to have a better chance of opening a bank account for the UK LLP, which option is the best to use?

1. Two NewMexico
2. Two Wyoming
3. WY + NM
 

uplana

Corporate Services
Mentor Group Gold
I miss xzars / tax cow. He gave valuable insight and had a great sense of humor. Hope he is alive :p
long time since he was only here the lat, you may have tagged him - oh I see not possible!

Hello,
I need 2 companies to use as a partner for a UK LLP, to have a better chance of opening a bank account for the UK LLP, which option is the best to use?

1. Two NewMexico
2. Two Wyoming
3. WY + NM
would go for a mix with New Mexico and Wyoming!
 

Asterion

New member
This
seemed like one of the best replies about pros and cons of those famous LLCs. I have found 4 comparison images on the web (to be handled with care I guess!), which I have compiled into this:

1642979941201.png


Some questions:
1. What about those taxes Delaware seems to have (1-A to 1-C)? Do they not apply to Non-Resident Aliens?

2. Wyoming seems to give you more privacy, sharing less than Delaware with the respective state authorities (2-D to 2-G). Isn't 2-F given away by form 5472 in any case?

3. Was probably bad wording from one of the sources, but Wyoming seems to give you an extra year of proper privacy (3-A and 3-B)?

4. The 3 of the 4 sources used had Nevada too, and 5-D seemed to put both DE and WY in a bette rplace than Nevada. But by many accounts, WY is still far from great about getting somebody to open a bank account for you as a NRA...

I appreciate any further inputs. @Tax Cow @starfleetio
 

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Asterion

New member
I wanted to tag @startfleetio but I misspelled the name and now I can't edit that post anymore.
For the record, I collated from the four similar tables at these links




 

startfleetio

Mentor Group Gold
I wanted to tag @startfleetio but I misspelled the name and now I can't edit that post anymore.
For the record, I collated from the four similar tables at these links




Very nice compilation.

We actually wrote one too. You can read it at

 

startfleetio

Mentor Group Gold
@Asterion

Just realized I didn't answer your questions:

1. What about those taxes Delaware seems to have (1-A to 1-C)? Do they not apply to Non-Resident Aliens?
If you do not trigger state nexus 1B and 1C do not apply to you. 1A is actually Delaware's version of Annual Report Fee, which is collected by other states. The Franchise tax for DE LLC is $300 every year.

2. Wyoming seems to give you more privacy, sharing less than Delaware with the respective state authorities (2-D to 2-G). Isn't 2-F given away by form 5472 in any case?
You got 2D 2E wrong, it is not listed in DE state records.

As for 2G, i honestly don't know the question to this. but I assume both states could be possible.

Form 5472 will expose you anyway to the IRS, if your sole objective is to run away from IRS, its pretty impossible.

3. Was probably bad wording from one of the sources, but Wyoming seems to give you an extra year of proper privacy (3-A and 3-B)?

No it is not an extra year. It is because Delaware has a fixed date for annual report (franchise tax) for all LLCs, regardless when you are registered. But for Wyoming LLCs, your annual report is due at the month next year of your formation month. e.g. you registered an LLC on 15th of June 2022, your annual report deadline is 1st of June 2023

4. The 3 of the 4 sources used had Nevada too, and 5-D seemed to put both DE and WY in a bette rplace than Nevada. But by many accounts, WY is still far from great about getting somebody to open a bank account for you as a NRA...
Forget about Nevada. Just pick Wyoming unless you want to convert your LLC to a C-Corporation to raise VC investments, then you pick Delaware.
 

lory

Mentor Group Gold
The one is not better than the other. You can write tons of articles, but in real live there is no difference. Wyoming, Delaware, New Mexico same same, depending on the agent you're using.
 
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