Any reason not to Dissolve the LLC in the state I originally started in?

Question

Hi,I am a small real estate investor with 6 properties that are all in Florida. I started about 7 years ago. When I started, I lived in NY and chose to create an LLC in Wyoming. I moved to FL about 3 years ago and created a new LLC in FL. I used the same exact business name as my LLC in Wyoming. Is there any reason why I need to keep the Wyoming LLC that I created when I first started my business? Keeping the Wyoming LLC active costs me about $62 per year and I'd like to eliminate that expense if there is no reason to keep it. 1 of my properties is listed under my LLC's name.

Jason Malabute · Answer

If you formed an LLC in Wyoming and also created one in Florida with the same name, they are considered two separate legal entities unless the Florida LLC is registered as a foreign entity tied to the Wyoming one. Just sharing a name doesn’t make them the same company. From a tax perspective, if all your properties and operations are now based in Florida and the Wyoming LLC is no longer holding title or conducting business, there’s likely no federal tax benefit to keeping it active. Before dissolving, you’ll want to ensure that no properties are still titled under the Wyoming LLC and that it’s not connected to any active bank accounts, insurance policies, or contracts. If the Wyoming LLC was being used for privacy or legal protection purposes, consider whether that benefit is still worth maintaining. Otherwise, dissolving it could simplify your admin work and save you the ongoing cost of filing Wyoming annual reports.

Julius Vincent · Answer

Got it, @Robert T.. Yes, updating the bank account is definitely one of those “unseen” steps that can create headaches if skipped.

Robert T. · Answer

@Julius Vincent thanks! The banking issue might be a problem as that bank account was created under my WY LLC before the FL one existed. I'll have to deal with that before dissolving. Thanks!

Robert T. · Answer

@Chris Seveney Thanks. I'm not sure which LLC owns the property. I never specified WY or FL when purchasing the property. My assumption would be the FL one owns it being I purchased it in FL and I never specified a particular state, I just gave them my LLC's business name. I don't believe I registered as a foreign LLC when I created the FL one . Based on your response I think I'm going to close it as there is no reason to believe the Wyoming LLC is the one that owns the property.

Julius Vincent · Answer

Hey @Robert T. - From a tax perspective, since all your properties are now in Florida and you’ve already formed a Florida LLC, there’s likely no federal tax benefit to keeping the Wyoming LLC active (especially if it’s not holding title or involved in operations anymore).

That said, here are a few things to consider before dissolving:

1. Title Ownership & Liabilities — If any properties are still titled under the Wyoming LLC, you’d want to ensure a proper transfer to your Florida LLC to avoid title or liability issues.

2. Banking/Contracts — If the Wyoming LLC is tied to active bank accounts, insurance policies, or contracts, those would need to be updated before dissolving.

3. Privacy & Legal Shield — Some investors keep a Wyoming or Delaware LLC for privacy or enhanced charging order protection. If you’re not leveraging that intentionally, it might not be worth the $62 annual cost.

4. State Filing Obligations — Dissolving the Wyoming LLC means you won’t need to file Wyoming annual reports anymore, simplifying your admin work.

If you’re just maintaining it “just in case” but all operations are FL-based, dissolving makes sense to streamline.

Chris Seveney · Answer

Which LLC owns the property?

If the wyoming LLC does not own property then why keep it open. I want to be clear, if you have a company called Me LLC in Wyoming and open a Me LLC in Florida its NOT the same LLC, its two different LLC's. If you registered as a foreign LLC as Florida with Wyoming as the main company then yes its the same. Just want to clarify this just in case.

Any reason not to Dissolve the LLC in the state I originally started in?

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