Need advice for forming a LLC in Nevada or Wyoming

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Hello All,

I am in the process of creating a LLC and wanted to know where should I establish the LLC; in Nevada or Wyoming. What are some of the pros and cons? Our Scenario: We are planning to do business in IL and TX so we know we have foreign file the business in IL and Texas; however, in order to save our personal assets we were informed to open LLC in states that are pro business. What are your thoughts?

Hey @Sunil Sharma ,

It's a great question to ask. The most general answer to your question is to find the strongest asset protection structure that costs the least amount of money. That can get tricky when comparing different entities and accounting for foreign filing fees.

Nevada is a very business friendly state, and the biggest advantage to Wyoming is that the anonymity is integrated into their entities and add an additional layer of privacy to you. With that being said, Nevada is not the only business friendly state and there are strategies that can introduce anonymity to your ownership without the use of the Wyoming LLC. An addition option for you is through introducing Land Trusts, allowing you to operate investments from states separate from your LLC without being required to pay foreign filing, so it really opens up a lot of possibilities at a low cost to you.

I am personally partial to operating out of Texas because the low annual cost of LLCs and minimal requirements as well as it's favorable disposition to business owners. Texas also offers the Series LLC, which allows you access to a liability protection entity that scales. But that is what fits my portfolio and my needs best, and could be different than your needs.

If you want more specific recommendations to your current situation feel free to mention where your current investments are and your future goals with REI and the type of protection you want. If you can clarify what you want I could give you a better idea of what entities might fit your situation best.