Registering an LLC as WordPress developers are good for your business. Not only does it limit your personal liability regarding business mishaps, but it also makes you appear more credible to investors and clients. But where should you start your LLC? You’ve probably heard about the benefits of incorporating an LLC in Wyoming and Nevada. And we review the two so you can choose which option best fits your business needs.
Wyoming or Nevada: Which State Best Matches Your LLC Goals?
There are many important features to consider when starting your LLC in any state. But the most integral ones are the costs and legal implications of this move, as we have covered below.
1. The Registration Processes and Costs
How much must you pay to get your venture up and running in each state? Wyoming state requires you to pay:
- $100 for the registration;
- $50 for renewals.
The average cost to start and operate an LLC in Nevada is $700, making it one of the costliest states in which you can form an LLC.
How about their licenses? In Wyoming, you will not need to get a business license after you have formed your business. But you would need to do so in Nevada. The state dictates that you must hold a business license where you hold your property, thus raising the registration costs.
So, the costs are considerably higher in Nevada. Wyoming would be a better choice for an entrepreneur who wants to save some coins when registering their business and keeping it afloat.
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2. The State Taxes
Another crucial factor you must consider is how much money you will pay to the state, in addition to the taxes payable to the federal government.
- In Wyoming, the state exempts you from personal, gross receipt, corporate income, franchise, inventory, excise, and per capita taxes. Moreover, you also pay lower sales levies than other states, amounting to about 4% on sales and 0.61% on effective property tax rates;
- On the other hand, Nevada charges 6.85% on sales taxes and 0.77% on effective property tax rates. And it also exempts you from corporate, personal income, and franchise taxes.
So, this difference in taxation may not seem like much. However, Nevada is known for taxing companies based on profits exceeding $4 million and charging rates specific to some industries. So, you could end up paying more in the long run when you initially thought you would pay similar rates to Wyoming.
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3. Your Privacy Concerns- WordPress Developers
Can you safeguard your privacy in any of these states? Both states allow you to elect a nominee manager who can file the registration papers and submit your company reports. As such, you can avoid having your personal details on public paperwork.
Even so, there is a caveat to this in Nevada. That’s because of the following:
- At least one company member must be a company manager, and this name must be submitted to the state;
- In the case of a single-member LLC, this name would be yours as the developer. Anyone searching your name on the Secretary of State’s website would see that you owned the company.
Is this the case in Wyoming? Not at all. According to state laws, you can have a registered agent as the intermediary between you and the state. And you do not need to submit the names of your members or managers and can instead designate the agent as the point of contact.
Plus, you do not need to list your address and can instead use your mail forwarding address. The deal gets even better – people cannot look up your company details by using your name. They would need to use the company name, and even then, the information they would access would not be as revealing as that in the case of Nevada LLCs.
So,
- If privacy is a huge concern to you, Wyoming would be the better choice;
- If it’s integral to reveal business details to potential investors or you want to open a business bank account, this factor might not be too essential.
4. The Formalities- WordPress Developers
How much work must you put into the business’s legal formalities to keep it running?
In Wyoming, all you need to do is register your business and ensure you file your reports on time. Moreover:
- The state does not step in too much regarding how you hold your business meetings (if any). And you can thus choose to hold them in the state or elsewhere;
- If you want to start your WordPress developer business independently, the state allows you to take up different roles in the business. So, you can run it as you wish, allowing you to add investors if you want to or run it alone.
What about Nevada? You will be subject to a set of annual regulations besides filing the reports, which adds to the list of things to do to keep your company afloat. And given the strict nature of the state authorities, failing to abide by these rules can lead to you losing your business.
Even so, you can still run your business alone and do not have to hold meetings in the state. So, you can still enjoy flexibility in your operations.
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5. The Legal Considerations
What happens if someone comes after your business and wants you to sell your assets so you can compensate them? In Wyoming and Nevada, it’s quite easy to protect your business interests. That’s because creditors cannot force you to sell your assets to pay a debt. Instead, they must get a charging order against your business, which requires you to pay the distributions due to the creditor.
However, consider the following:
- This order does not force you to pay the distributions;
- You can thus safeguard your business assets.
This practice is common in both states, especially in Nevada, making them excellent choices to uphold the corporate veil.
Besides, Nevada has a business court where business disputes are solved. So, if you have an issue with any of your stakeholders, you can solve it where precedents can pave the way for faster resolution.
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Conclusion of WordPress Developers
Should you form your WP developer business in Nevada or Wyoming? The best place to incorporate your business is in the state where you reside. That’s because your business will always be subject to the laws of the state in which you operate.
For example, if your business operates in New York and you register it in Wyoming, you can be sued in a New York court. So, seek legal and accounting advice before incorporating your business in a state other than that in which you reside.
Author’s Bio
Dmytro Kondratiev, chief Editor of LLC.services, associate in Axon Partners.
Experienced lawyer (Intellectual Property, Patenting, Contract law, Labor Law, International Private Law).
Worked with IT companies Webxloo (Delaware), Autoxloo (Florida), SCC (Delaware)
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