Wyoming - why is it not so known?

[El Aprendiz]

The last days I was reading about WY ... and I found interesting and simple things and even cheap (for non resident of EE.UU)

but, my question is, why is it not so known?

And why do most people continue to choose countries like Malta, Panama, Virgin Islands, Seychelles, etc?

Could it be that I'm not seeing the negative side of WY?

What do you think about WY?

 

[ih8socialism]

I think there are two things

1) Most people don't know about it, they think US is a high tax country (which it is but not for the ppl with the right setup)
2) For US Citizens there is no use in those companies if you are looking to save tax

I just recently found out about them, and due point 1 I never really looked into it until couple of weeks ago and found them amazing

 

[JohnLocke]

You may have a read here:
https://www.offshorecorptalk.com/th...void-reporting-to-my-local-authorities.27824/https://www.offshorecorptalk.com/threads/wyoming-vs-new-mexico-llc-what-is-better.27706/
Problem will be banking, but if you can use TransfwerWise and similar you should be good.

 

[ih8socialism]

You may have a read here:
https://www.offshorecorptalk.com/th...void-reporting-to-my-local-authorities.27824/https://www.offshorecorptalk.com/threads/wyoming-vs-new-mexico-llc-what-is-better.27706/
Problem will be banking, but if you can use TransfwerWise and similar you should be good.

I talked to Chase recently, asking if its possible to open an account for an Florida LLC with an non us citizen, they told me its possible, just need to visit their local branch, which I will do once we can roam around the globe again. I'll share my experience here once I tried it out.

 

[JohnLocke]

That's great, I have read this at least a hundred times already here on OffshoreCorpTalk.com - the question always remains, only 1 user came back here in the last 3 years and reported that he was able to open an account that easy as you explain it.

The question is rised over and over again and again, if it really is that easy I wonder why people keep asking the same question or similar to these?

 

[ih8socialism]

That's great, I have read this at least a hundred times already here on OffshoreCorpTalk.com - the question always remains, only 1 user came back here in the last 3 years and reported that he was able to open an account that easy as you explain it.

The question is rised over and over again and again, if it really is that easy I wonder why people keep asking the same question or similar to these?

Well after talking to chase and reviewing the required documents I think it most likely depends on the person who wants to open the account and the actual business. I came to that conclusion because several points on their checklist actually require you to prove that you have a 'serious' business.

So one point for example is "Website Validation"

And further down the PDF you can find the average things like Nature of business and so on.

So I had some experience with german banks, the bigger ones like Deutsche or Commerzbank made it really hard for us as a fresh startup to get a corporate account, however when we hade a very professional outline and a solid business concept worked out (Not like Generic IT Consulting lol) it was no big hassle. I think the same goes for chase or any other big bank in the states.

You can find the list here.
https://www.chase.com/business/switchkit
Well anyways, I will keep you guys here posted how it goes once covid19 is gone

Best Regards

 

[justsomeguy]

I use a Wyoming LLC, it works well for my needs. The only real issue from a tax perspective is making sure that your income isn't effectively connected to the US. You should have no issues for non-US income.

That's great, I have read this at least a hundred times already here on OffshoreCorpTalk.com - the question always remains, only 1 user came back here in the last 3 years and reported that he was able to open an account that easy as you explain it.

I opened a US bank account for my Wyoming LLC, while i was on holiday last year in Hawaii with the Bank of Hawaii, was pretty straight forward as i had organised things ahead of time. Their banking system is pretty ancient but it does the job.

 

[Btraveler]

The last days I was reading about WY ... and I found interesting and simple things and even cheap (for non resident of EE.UU)

but, my question is, why is it not so known?

And why do most people continue to choose countries like Malta, Panama, Virgin Islands, Seychelles, etc?

Could it be that I'm not seeing the negative side of WY?

What do you think about WY?

As Eu citiezen, I've been able to open Mercury.co account and also Transferwise account for my Wymonig LLC

 

[onemansomewhere]

If you are EU citizen / resident, Wyoming is probably not the best solution for you. LLC is profit pass through entity. The profit which is derived from within the USA has to be taxed in the USA on a personal income rate. As non US resident, it is taxed at 30 %. If your country of residence in EU has higher rate, you will have to pay a difference in your country of residence, also. Profits not derived from US territory will be taxed at your country of residence completely at a personal income tax rate.

Wyoming LLC makes sense just in case when you create a reasonable backgroud structure between you and LLC.

 

[onemansomewhere]

As Eu citiezen, I've been able to open Mercury.co account and also Transferwise account for my Wymonig LLC

Mercury accept all money launderers, illegal business etc.. They will be closed soon and clients funds lost forever.. Question is not if, but when,..

To have a reasonable corporate bank account in U, you have to be able to travel to the USA and oproduce some KYC paperwork..

 

[Outlander]

With regards to profit distribution, how can one accumulate profits in a Wyoming LLC (for reinvesting in the business, for example)? I understand that it being a "pass-through" entity, profits have to be fully distributed at the end of every period... or am I wrong?

Also, what constitutes "doing business with the US"? Does any of the following constitute doing business in the US?
- Stock trading in US markets
- Receiving payments from bank accounts within the US but belonging to non-resident entities

 

[Btraveler]

Mercury accept all money launderers, illegal business etc.. They will be closed soon and clients funds lost forever.. Question is not if, but when,..

To have a reasonable corporate bank account in U, you have to be able to travel to the USA and oproduce some KYC paperwork..

Hello @onemansomewhere In part you could be right, but not at that extrem. If you don't provide personal tax number of you or the company they do not open the account. so major part of "moneylaunders" won't be able to open account at there...

 

[onemansomewhere]

With regards to profit distribution, how can one accumulate profits in a Wyoming LLC (for reinvesting in the business, for example)? I understand that it being a "pass-through" entity, profits have to be fully distributed at the end of every period... or am I wrong?

Also, what constitutes "doing business with the US"? Does any of the following constitute doing business in the US?
- Stock trading in US markets
- Receiving payments from bank accounts within the US but belonging to non-resident entities

Profit as number is passed through. Even when money are not withdrawn from LLC bank account nor moved to a member account. If profit has a profit, it is passed through to a members. Without need to be distributed.

Hello @onemansomewhere In part you could be right, but not at that extrem. If you don't provide personal tax number of you or the company they do not open the account. so major part of "moneylaunders" won't be able to open account at there...

Mercury does not require ITIN. EIN can be obtainted without revealing a real identity.. So it it a serious problem..

 

[Tankboy]

I also have a Wyoming LLC, I registered my company EIN with the IRS and then opened my US bank account with no issues. They just want a US address (can be a postal forwarding service) and ID (passport) plus copies of the LLC paperwork. Took me about 30 minutes to set up with Wells Fargo bank. Great online banking. Worked fine for me. That was two years ago and all is running sweet. Even just received US covid-19 subsidy payout to my Wyoming company as all my company tax returns had been filed.

 

[fshore]

The only real issue from a tax perspective is making sure that your income isn't effectively connected to the US. You should have no issues for non-US income.

This is the same for all foreign companies. If you have effectively connected income then the income is taxable in the US no matter where your company is incorporated.

 

[eRabbit]

If I live outside the US, I have a Wyoming LLC and all the money the company makes is from affiliate marketing networks located in the USA, will the LLC have to pay any taxes? Thanks!

 

[Tankboy]

If I live outside the US, I have a Wyoming LLC and all the money the company makes is from affiliate marketing networks located in the USA, will the LLC have to pay any taxes? Thanks!

Yes - you have to pay Federal Tax

 

[eRabbit]

Yes - you have to pay Federal Tax

Thanks! But are you sure?

I also got this answer:

No, not unless you have Effectively Connected Income (ECI). If you only work from outside the US and have nothing “on the ground” in America (like a warehouse or people working for you), then there is no US tax.

 

[Tankboy]

If your Wyoming registered company is selling product or services in the US, it is subject to Federal taxes on its profits on products and or services sold in the US.

You personally, may not be liable for US federal taxes, but your Wyoming company will be.

 

[Tankboy]

Thanks! But are you sure?

I also got this answer:

No, not unless you have Effectively Connected Income (ECI). If you only work from outside the US and have nothing “on the ground” in America (like a warehouse or people working for you), then there is no US tax.

No matter what, you still have to file a company Federal Tax return every year. And your account will advise what needs to be paid.