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what is the best state to form an llc in watch this video and find out hey i'm quran from life accounting the number one firm for financial education do me a favor go ahead and like this video for me so others can find it on youtube and subscribe for the best financial content you can find okay let's jump right into it to truly answer the question what is the best day to form an llc we actually need to answer two questions the first question is literally what is the best state to form an llc in but the second question is what is the best state for you to form an llc you'd be surprised that those are two different questions that actually have two different answers let's talk about it starting with the first question what is the best state to form an llc well there are three places in the united states that are known to be the best state to form an llc in and all three have their own appeal starting with the first and most popular choice delaware and for good reason delaware has very low registration fees and franchise taxes also delaware does not tax out-of-state income meaning delaware llcs who do no business in delaware or a non-significant amount of business in delaware can see enormous tax savings delaware also has something called a chancery court you see a chancery court is a court that only handles business cases so business disputes are handled much quicker than other parts of the country and the judges are extremely knowledgeable about business law i mean that's all they do making delaware one of the most business friendly states for llcs now the second best state to form an llc in is nevada yes home to viva las vegas nevada has no state income taxes no taxes on business profits no corporate taxes no taxes on capital gains and no franchise taxes additionally unlike some states nevada does not require llcs to hold annual meetings or have an operating agreement to remain compliant though i fully recommend that you have an operating agreement for your llc even if your state does not require it now nevada also bakes privacy into their llc benefit as they don't require you to disclose the owner of the llc when forming one and does not share formal information with the irs making nevada a great place to have privacy as an llc but an even better place to save on taxes as an individual and llc business owner but if your main goal is privacy the best place to form an llc is actually number three on the list and that's wyoming yup wyoming is quickly becoming more and more popular as people think about asset protection so what makes wyoming so great for privacy and asset protection well wyoming is the only state that allows for what is known as a lifetime proxy which allows you to control the llc through someone else who owns a membership interest meaning the managers and the members of the llc do not have to disclose who they are but can still control the llc additionally wyoming is one of the few states that offer liability protection for single member llcs and as a little cherry on top for wyoming llcs wyoming also has no business income or franchise taxes by the way while we're talking about starting at llc be sure to check out our free training where we show you how to start a six figure business with only 250 i've done it and i'm happy to show you how to do it as well and that free training link in the description okay back to the video so now that you know the three best places to form an llc let's answer the second question where exactly should you form your llc and the answer is actually quite simple for most people you should form your llc where you live aka your home state now there are three exceptions that i'll go over in just a second but once again for most people you should form your llc where you live so quran you're telling me i shouldn't form my llc in nevada delaware or wyoming if i don't live there yep that's exactly what i'm saying for example if you live in california i know the registration fees are simply outrageous but you should form your llc in california here's why if you register your llc outside of your home state but still meet the qualifications for doing business in your home state well you will have to register as a foreign llc in your home state meaning you will have to register in both states so not only will you pay registration fees in both states you may also have to pay annual reporting fees in both states and maintain both llc's which can get quite expensive and if you form your llc in another state to take advantage of low or non-existent business taxes well think again because you pay taxes where you conduct business and not where your llc is formed meaning if you do not conduct business in a state where you formed your business you will simply end up paying taxes based on your home state's laws this concept applies to online businesses as well so when does it make sense to form an llc in another state if you don't live there well here are the three scenarios where it makes sense if you want to remain anonymous you will want to form an llc in wyoming or nevada and have the wyoming or nevada llc own the llc that is registered in your home state once again in those two places you do not have to disclose who owns the llc now if you're in real estate you want to form an llc where the investment is located as all business for the property will be conducted in that state and lastly if you are not a us resident but own a business in the united states you should likely form an llc in wyoming as it has the most foreigner friendly laws well there you have it the best day to form an llc if you found this video helpful do me a favor and hit that like button for me it helps others to find this video on youtube and subscribe to the channel for more financial information that helps you save on taxes and create more profit in your business also be sure to check out the free training from life accounting where we show you how to start a six-figure business with only two hundred and fifty dollars once again it's free and you can find the link in the description below
Thanks for your comment Wanda Boomhower, have a nice day.
- Zola Gessert, Staff Member
right now i'm standing in my backyard in front of a giant 65-foot yacht a brand new yacht like this one costs 5.7 million dollars and today we're going to talk about how this company can protect that yacht we're talking about llc charging order protection hi i'm the business guy with asset protection planners and today we're going to talk about a charging order and what that is charging order protection offers asset protection to members of llc's and partners of limited partnerships so first i'm going to talk about what the charging order is i'm going to talk about the five best states in the country that offer charging order protection even if you are the only member of the llc then i'm going to talk about the best country in the world that offers llc charging order protection that is superior to any state in the united states or any other country and just to give you a little background i've been in the asset protection field since 1991 our company started in 1906. i believe we have over 70 000 clients in our database we have licensed attorneys on our staff and we are the largest asset protection firm nationally and i need your help because for youtube to promote this video they want to know people like you like it so if you could please click the like button below i'd really appreciate it and you can also click the subscribe button so that when more videos come out like this you'll get notified okay so let's talk about what charging order protection means so let's say you were a member of a limited liability company and let's say wyoming for example okay so you own that is you're a member of a wyoming llc then somebody sues you not your business but you're in a personal lawsuit you're rearing somebody in your car and then you're sued for way more than your liability limits on your insurance happens every day as a result you can lose everything you own except for the things that are protected from that lawsuit so we look at wyoming code section 17-29-503 charging order where it says and i quote this section provides the exclusive remedy by which a person seeking to enforce a judgment that means the person who sued you against a judgment debtor and that means you when you lose a lawsuit and have a judgment against you you are a judgment debtor including any judgment debtor who may be the sole member that means it protects your assets even if you are the only owner furthermore it says other remedies including foreclosure on the judgment debtor's limited liability interest may not be ordered by the court that's charging order protection so the person who won the lawsuit against you cannot take your company away from you and they cannot take anything inside of the company away from you they cannot take away your company whether you are the only owner or just one of the owners they cannot legally jump in and make management decisions on your behalf the most that a judgment creditor could get out of the llc would be if you were to make distributions of the profit from the llc to yourself so say you have a checking account in your wyoming llc you write a check to yourself as a distribution of the profits then theoretically the people who sued you would get that money but here's something else you are not required to make a distribution to yourself they cannot force you to make a distribution plus they cannot take your membership interest away from you and they cannot jump in and become one of the managers of the llc and again this is the case even if you're the only one who owns it and single member charging order protection holds true in only five states and that's wyoming delaware nevada south dakota and alaska in all the other states you need to have two or more members in the llc in order to enjoy charging order protection so the charging order offers asset protection for the company itself so nobody can take the company away from you or the assets held inside the llc let's say you have two hundred thousand dollars invested in a stock market portfolio you wisely hold your investments not in your own name that could be gone in a flash but you are smart and you hold your investments in an llc okay so let's say you're making 10 annually you're in a mutual fund so it's producing twenty thousand dollars per year on average in this particular year you made the twenty thousand dollars if you take it out and distribute it to yourself it would theoretically go to your opponent on the other hand if you keep it in the llc that's perfectly fine they can't force you to do anything else with it and the true beauty is this there's another booby trap with the charging order protection and that's revenue ruling 77-137 in other words a revenue ruling that occurred in 1977 and it was the 137th ruling that year it states that whoever has the right to receive the distributions of the profit from the llc that is the one who has the income rights from tax flow through entities such as an llc or limited partnership needs to pay the taxes on the profit that llc makes on that member's interest in the llc whether they receive the profit or not so in other words you as the member of the llc decide not to distribute the profits that would be paid to these other people however they still have to pay the taxes even though it remains in your company some more recent decisions have softened that blow in some cases okay now so in other states besides nevada wyoming and these other states you need to have two or more members in order to enjoy that protection if there's only one member let's say in california florida new york texas they would theoretically get the charging order and then foreclose on your interest and take the company and its assets so in other us jurisdictions besides those five states you need to have two or more members to enjoy the charging order protection okay so how long does a charging order last in the u.s 20 years a judgment lasts for 10 years and can be renewed for another 10. during that time you can get the money out in other ways instead of paying a distribution why not pay yourself a salary or pay a trusted friend or relative they can buy you the things you need such as help you with your mortgage payment or buy your groceries so there are some tricks to getting the money out of the llc without the llc's income being subject to your judgment creditor now let's kick it up a notch there's another jurisdiction that offers far superior protection and this is a place where we have established thousands of llc's in fact we have established more llc's than anyone on the planet that is the caribbean island of nevis a nevis llc is the llc that offers the best charging order protection on the globe i've been to nevis many times i know two of the last three premieres of nevis as you can see on our websites and in the 30 years i've been in this business i've done tremendous research i've probably written more asset protection articles than anybody on the planet and i've never seen any llc anywhere that offers more protection than the one offered on this island that sits off the southeast tip of florida in the caribbean sea it offers the strongest as
Thanks Morris your participation is very much appreciated
- Zola Gessert
About the author
I've studied anthropological criminology at Northwest Florida State College in Niceville and I am an expert in sustainability studies. I usually feel gloomy. My previous job was electrician I held this position for 8 years, I love talking about zumba and sunbathing. Huge fan of Michael Pena I practice cycling: bmx) and collect artist trading cards.
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