Question Wyoming VS New Mexico LLC: Do I really need the asset protection?

[RonaldVaughan]

I am starting an e-learning website where I will sell courses.

I am an Indian Citizen, living in India and Stripe has some limitations in my country.
I am looking to set up an LLC in the US primarily to accept payments from Stripe in my website.

I am considering setting up a Single Member Non-Resident LLC is Wyoming or in New Mexico. I plan to transfer all the money to my personal bank account in India every 30 days.

My understanding is that New Mexico is cheaper (registered agent $35/year and $50 to open an LLC with no yearly filing fee).
Wyoming has much better asset protection (charging order as sole remedy) but will cost $50 a year to maintain + around $50/y for a registered agent.

I am wondering if I will really benefit from the asset protection offered by Wyoming since I am not a US citizen nor am I living in the US.
Can someone from the US sue me personally for my personal actions even though I am in India that puts my US LLC assets at risk? In other words can I have any outside liability in the US?

Does it make sense to have a Wyoming LLC for my use case?

 

[orangeye]

I am wondering if I will really benefit from the asset protection offered by Wyoming since I am not a US citizen nor am I living in the US.

that's one of the very rare but good questions asked here, thread bookmarked, hope someone can help.

 

[hapiswood]

does anyone have any answer for this? fill word count

 

[forlac]

why should it not?
give the local SoS a call, you can also leave a message.

 

[uplana]

I am wondering if I will really benefit from the asset protection offered by Wyoming since I am not a US citizen nor am I living in the US.

You can search the forum for similar question asked during the last year or so. There is no asset protection for people living in India or anywhere else with a US LLC alone, it requires a more complicated setup. You will get reported, not by the company registration agent but by the bank or EMI you will be using to open an account.

Once the account is opened they will know about it in India, the consequences of what it means for someone living in India, I don't know.

However, for someone that is shopping around for a product below 100$, I think there is not really a need for asset protection, so there is no risk to hide your 500$ in the LLC.

 

[forlac]

You can search the forum for similar question asked during the last year or so. There is no asset protection for people living in India or anywhere else with a US LLC alone, it requires a more complicated setup. You will get reported, not by the company registration agent but by the bank or EMI you will be using to open an account.

Once the account is opened they will know about it in India, the consequences of what it means for someone living in India, I don't know.

However, for someone that is shopping around for a product below 100$, I think there is not really a need for asset protection, so there is no risk to hide your 500$ in the LLC.

So you mean there have to be a holding structure or what exactly with "complicated setup"?
For me I want to protect my domain assets, which are difficult to valuate, today and in near future.

But I will search for your referring posts from last year the next days, when I do proper research again, thanks for pointing it out.

 

[RonaldVaughan]

You can search the forum for similar question asked during the last year or so. There is no asset protection for people living in India or anywhere else with a US LLC alone, it requires a more complicated setup. You will get reported, not by the company registration agent but by the bank or EMI you will be using to open an account.

Once the account is opened they will know about it in India, the consequences of what it means for someone living in India, I don't know.

However, for someone that is shopping around for a product below 100$, I think there is not really a need for asset protection, so there is no risk to hide your 500$ in the LLC.

I am not creating a LLC in the US to hide my assets. I am doing it to collect payments from Stripe.

My question was is there any benefits of having a Wyoming LLC over New Mexico LLC. You seem to suggest there are no differences especially if I live in India. So I might as well go for New Mexico LLC which is free to maintain.

 

[sujoe]

I am not creating a LLC in the US to hide my assets. I am doing it to collect payments from Stripe.

My question was is there any benefits of having a Wyoming LLC over New Mexico LLC. You seem to suggest there are no differences especially if I live in India. So I might as well go for New Mexico LLC which is free to maintain.

NM LLC has a higher chance of getting rejected by Stripe or bank

 

[kranj99]

My experience is that if you are non-US resident (i.e you don't have an SSN in your name) and you set up a US LLC in any state (with full compliance like EIN etc.), sometimes the payment processors reject you. I mean first they may approve you and then a few months later, Stripe, Paypal etc. just out of the blue suspend your account and ask you for new compliance documentation (i.e. personal tax records etc. - things that you cannot have if you are not a US resident).

 

[uplana]

what about Stripe / Atlas it's their own program where they incorporate your business in Delaware, they are handling everything and let you process payments this way?

 

[forlac]

My experience is that if you are non-US resident (i.e you don't have an SSN in your name) and you set up a US LLC in any state (with full compliance like EIN etc.), sometimes the payment processors reject you. I mean first they may approve you and then a few months later, Stripe, Paypal etc. just out of the blue suspend your account and ask you for new compliance documentation (i.e. personal tax records etc. - things that you cannot have if you are not a US resident).

can you proof this by reference?

 

[sonato]

can you proof this by reference?

+1 here

Also I believe you can use such type of entities in the US for a wide range of services to be sold. Asset protection, I believe it is not very common that you succeed in case the tax man is chasing you.