Wyoming Incorporations

Wyoming is an increasingly popular US state with those looking for a tax efficient jurisdiction in which to incorporate a secure offshore company structure, in fact the number of Wyoming incorporations is increasing annually.

The main attractions of a Wyoming C-Corp, S-Corp or LLC are that non-US derived income and profits are state tax free, nominee directors can be used for the company and it is possible to use a correctly structured Wyoming incorporation for the protection of business assets.  The LLC or Limited Liability Company is the most popular type of Wyoming offshore company and it is that which this article discusses.

A Wyoming based LLC has only been a recognized and valid entity since 1977 and it is treated as a corporate being but categorized as a partnership.  In terms of taxation the LLC is not taxed directly but rather the income and profits that flow through to the members of the LLC are taxed according to basic US tax law.  This means that those who decide Wyoming incorporations are the way to go, who are not US domiciled or resident, who derive no income from the US nor enter into trade or business dealings with a US based company can derive their profits and income completely state tax free.

Often a Wyoming LLC is established with an offshore company or companies as the member/s thus creating an even more tax efficient, non-transparent structure.

In terms of double taxation treaties in place between the US and other nations that may affect the tax neutrality of Wyoming incorporations, expert legal and taxation advice should be sought before anyone commits to establishing an offshore company in Wyoming.

In terms of reporting and accounting requirements and restrictions, there is a requirement for a Wyoming based LLC to annually submit a basic return but as long as the company conducts no business in the US and derives no income from America there is no requirement to submit full American tax returns – thus a Wyoming based LLC is simple to operate.

An LLC will have to have a registered office in Wyoming as well as a registered agent resident in the US state, but many offshore company service providers who can incorporate a company offshore in any jurisdiction offer such services for a small annual fee.