Domestication allows you to keep your company’s history and incorporation date while changing your home state. You can domesticate from any state to Wyoming.
Advantages of Wyoming Domestication
What are the Advantages of Domesticating in Wyoming? If you have an LLC registered in a different state, you don’t receive the benefits of Wyoming’s tax structure or the state’s strong asset protection laws. Wyoming is also an inexpensive state to operate a business in compared to expensive states like Nevada.
Wyoming has no franchise tax fees. Wyoming has no business licensing fees. The only tax for LLCs is the annual license tax of $50 or a small percentage of the value of your LLC’s assets located in Wyoming.
Steps for Domesticating an LLC in Wyoming
Before completing Wyoming’s documents, you’ll need to create a resolution stating that the members have agreed to domesticate the LLC in Wyoming, and dissolve the LLC in its home state.
To register a foreign LLC in Wyoming, here are the steps:
- Look up Your LLC Name: Ensure you get the exact legal name of your LLC as listed in your home state.
- Obtain a Certificate of Good Standing: From your current state.
- File the necessary paperwork: This includes Articles of Domestication with Wyoming’s Secretary of State.
- Dissolve the LLC: In its home state to complete the process of domestication.
The filing fee in Wyoming for an LLC domesticating into the state is $100.00 which covers most documents filed during the domestication process. The cost to dissolve an LLC in Wyoming is a $50 fee for filing articles of dissolution.
Ownership Transfer in Wyoming LLCs
How to Transfer Ownership
Transferring ownership of an LLC in Wyoming involves:
- Review the Wyoming Operating Agreement: It outlines the procedures and requirements for transferring ownership.
- Follow the outlined procedures: This may include obtaining approval from other members and updating the LLC operating agreement.
- Update the IRS: With the new ownership information.
Considerations for Ownership Transfer
The Wyoming Close LLC allows for restrictions on transfers, membership, and dissolution. If a Wyoming LLC is involved in a lawsuit, the courts will determine which state’s laws apply. Wyoming does not require you to provide ownership information to the Secretary of State.
At LLCBase, we understand forming a business can be overwhelming, and we offer assistance through the process.
Domestication vs. Continuation
The major difference between domestication and continuation is that only out-of-state businesses can domesticate in Wyoming. Continuation allows out-of-state and out-of-country businesses to relocate to Wyoming.
Conclusion
Domestication in Wyoming offers significant tax benefits and a more straightforward business operation environment. It’s important to follow the correct procedure and complete all necessary documentation to successfully transfer your LLC to Wyoming. If assistance is needed, services like LLCBase can guide you through the process.
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