New Jersey LLC Vs Wyoming LLC
Parlin, NJ · Member since 2016 · 13 posts · 5 votes
New Jersey LLC Vs Wyoming LLC
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Sicklerville, NJ · Member since 2016 · 41 posts · 23 votes
10yEric 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.
7 Replies
- Sicklerville, NJ · Member since 2016 · 41 posts · 23 votes10yEric 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.
- Real Estate Agent · Brooklyn, NY · Member since 2021 · 1 post · 0 votes4y
Does foreign filing a WY LLC in NJ give up any benefits of anonymity or charging order protections ?
- Investor · Blackwood, NJ · Member since 2015 · 91 posts · 36 votes3y
Quote from @Stewart Miller:
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.Stewart,
We are thinking same to do as we have many LLCs in NJ and other states. We are thinking to have WY holding company. Just confused how the filing of taxes happen at the end of the year? If you can give some details per your experience would be appreciated. Also, if you know any good CPA who has such a knowledge to help us! Thank You!
- Sicklerville, NJ · Member since 2016 · 41 posts · 23 votes3yIf your operating LLCs are all owned by the WY holding company, all of the operating LLCs will report their taxes on the holding company’s taxes (technically, one tax filing) so long as the operating LLCs are taxed as an disregarded entity. This structure actually simplifies your taxes.
Quote from @Pranav G.:
Quote from @Stewart Miller:
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.Stewart,
We are thinking same to do as we have many LLCs in NJ and other states. We are thinking to have WY holding company. Just confused how the filing of taxes happen at the end of the year? If you can give some details per your experience would be appreciated. Also, if you know any good CPA who has such a knowledge to help us! Thank You!
- Spring, TX · Member since 2017 · 138 posts · 44 votes3y
@Stewart Miller quick question. so you are saying it's like this:
LLC A: WY holding LLC that owns the below:
LLC 1: TX (I am in TX) operating LLC
LLC 2: TX operating LLC
LLC 3: TX operating LLC
Each of LLC 1, LLC 2, LLC 3 above can own multiple properties operating means they can buy, lease, manage, collect rent? Then when it comes to tax we only need to file tax on LLC A?
Thanks!
- Sicklerville, NJ · Member since 2016 · 41 posts · 23 votes8mo
@Courtney Nguyen yes, that's it as LLCs 1,2,and 3 are pass-through entities.
- 8moJ CastroBusiness MemberLender · Florida · Member since 2025 · 697 posts · 252 votes
Quote from @Eric Espindola:
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
Hey @Eric Espindola, welcome to BP!
Good question—this comes up a lot, and there’s a lot of misinformation floating around.If you’re buying, operating, or managing property in New Jersey, forming a Wyoming LLC does not give you meaningful tax or liability advantages once you properly comply with NJ law. In most cases, it adds cost and complexity without real benefit.
Here’s why:
1. You’ll still have to register in New Jersey
If a Wyoming LLC is doing business in NJ (owning property, collecting rent, signing leases, managing renovations), NJ will require it to register as a foreign LLC. That means:-
NJ filing fees
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NJ annual reports
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NJ registered agent
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NJ taxes
At that point, you’re paying both Wyoming and New Jersey costs.
2. Asset protection myths
Wyoming is popular because of charging-order protection and privacy. However:-
NJ courts apply NJ law to NJ-based property
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The property itself is still located in NJ and subject to NJ jurisdiction
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Liability protection comes from good insurance + proper entity maintenance, not the state name on the LLC
3. No automatic tax savings
This is the biggest misconception.-
Income is taxed where the property operates
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Flowing money from one LLC to another does not eliminate or reduce taxes
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If both LLCs are pass-through entities, income still flows to you personally
Any “tax savings” claims usually involve:
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Poor explanations
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Aggressive structures that don’t survive audits
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Or strategies that require multiple entities and a CPA to implement correctly
4. When Wyoming LLCs do make sense
A Wyoming LLC can be useful if:-
You’re holding out-of-state assets
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You want a holding company above multiple operating LLCs
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You’re structuring larger portfolios and working with a CPA + attorney
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Privacy is a legitimate concern (not a tax strategy)
Practical takeaway:
For most investors starting or operating in New Jersey:-
A New Jersey LLC is simpler, cheaper, and cleaner
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Add umbrella insurance and proper bookkeeping
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Revisit multi-entity or holding company structures after you scale
Before setting anything up, it’s worth a 30-minute call with a CPA or attorney who works specifically with NJ real estate investors—not a generic online LLC service.
Hope this helps clarify things 👍
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