Updated 5 months ago on . Most recent reply
New Jersey LLC Vs Wyoming LLC
Good Evening Bigger Pockets.
In my research, I've read many fascinating opinions about forming a Forgein Entinty LLC in my state. Such as a Wyoming LLC doing business in New Jersey. Although, I do have to pay the filing fees and the Wyoming LLC setup costs. What are the potential benefits of using a Wyoming LLC over a New Jersey LLC? Is it worth paying the fees? Or would i rather just set up a New Jersey LLC?
On a side note, I've heard that you can flow profits from one LLC to the other( if it's foreign) and use that money for investments and also save on taxes. I could be wrong but I would appreciate the clarity on this.
-Thank you
Most Popular Reply
Eric Espindola it depends on what you're doing in NJ. If you're holding rentals, I would set them up in a NJ LLC. I would have a WY LLC own all of the individual NJ LLCs. I have this structure and it gives you charging order protections, which is why I use it. WY & NV laws specifically state a charging order is the sole and EXCLUSIVE remedy a creditor has against an LLC. Boiled down, it means a judge cannot order a judicial foreclosure on your LLC. The creditor has to wait for you to make a distribution. Also, if you wish to have anonymity, WY allows nominees on their LLCs. If the WY LLC owns all of your NJ LLCs, you essentially have anonymity on all of your NJ LLCs.