How to Use a Wyoming LLC for Asset Protection

Wyoming LLCs are a great way to protect your passive assets from lawsuits unconnected to the investments. This video will teach you why Wyoming is a good state for your LLC, how to set up a WY LLC, and what assets make sense to own through a WY LLC.
Set up WY LLC -- Garrett Sutton @ Corporate Direct corporatedirec... [Please tell them Sharon Winsmith sent you]
Link to Download Optimal Holding Structure graphic - taxplanninghq....
Best Structure for Owning Assets - • The Right Structure fo...
S Corp Payroll Tax Strategy - • Use The S Corp Payroll...
How to Maintain Your LLC - • How to Properly Mainta...
Video Contents
00:00 - Intro
01:12 - Purpose of WY LLC
05:36 - Why a WY LLC
07:04 - What to Own Through WY LLC
10:38 - What is a Charging Order?
14:50 - Requirements for Setting up WY LLC
18:43 - How to Set up WY LLC
⚠️ Exercise caution before using this strategy. Do your own research and make sure you fully understand the risks you are undertaking!
💡 I do not work with clients or offer any consulting services. If you want to learn more about the best tax and investment strategies, subscribe to my channel and check out these courses ▶️ sharonwinsmith...
The information provided in this video is owned by Winsmith Tax LLC and is solely for informational and educational purposes. It is not intended as investment, legal, or financial advice. Always consult with a professional familiar with your unique situation, or conduct your own research before making any decisions. We might receive commissions for recommending certain products or services.

[@2bglee]

as usual, great info, broken down in a clear ez to understand format

[@alexandermayerkirstein]

Excellent discussion well delivered. I watched dozens on wy LLC and asset protection. You were clear about the most important aspects and I wasn’t left confused as usual. Valuable watch. Thank you!

[@sharonwinsmith]

Thank you for your kind words! :)

[@sebastianandrew9077]

These videos are a treasure!

[@thegzak]

“Let’s say we have Bob, who is a bad driver because he’s a man” 🤣 All jokes aside, excellent video and channel, I’m learning all the things about financial planning they never teach you in school. Brilliant!

[@whecks]

It's funny...and then you remember that it can't be funny the other way around.

[@paulanderson73]

GREAT VIDEO FAMILY!!!! Look forward to more

[@sharonwinsmith]

Thank you for watching! :)

[@williamsamek2677]

You are thinking comes across as very clear and understandable. It is one of the best videos on the subject that I have ever seen. Congratulations on your new channel and keep up the good work!

[@sharonwinsmith]

Thank you! I appreciate your kind words 🙂

[@-intlspecialinvestigations948]

Thank you for great information

[@sharonwinsmith]

Thank you for watching!

[@rayyzhao]

This is very well articulated and explained. Thank you! One question: if one moves his passive investment (e.g. stocks/bonds/mutual funds) from his investment account under his own name to a WY LLC owned by him, is the distribution considered taxable income to him in the year he takes a distribution? If so, that tax will be additional tax that he wouldn’t have to pay if he simply left the investment account under his own name. Is that right?

[@HopeProphecy]

Clarification question: if I want a Wyoming Holding LLC to manage a subsidiary LLC, do I have to set up my subsidiary as MEMBER-managed (by the holding LLC)? or can it be MANAGER-managed (by the Wyoming Holding LLC)? Assuming both LLCs are single-member, would there an advantage to either option? Thanks.

[@sebastianandrew9077]

Thank you so much

[@chayden1402]

Mind blowing Information

[@sharonwinsmith]

Thank you so much 😀

[@erinl.4387]

Very nice! Thank you!

[@sharonwinsmith]

Thank you for watching! 😀

[@lijuthotam]

Excellent👍

[@sharonwinsmith]

Thank you! 😁

[@lancestudworthy]

Can you talk about a conflict of laws situation. I live in Illinois. If Illinois allows foreclosure of your interest in LLC then if I live Illinois doesn't that law have jurisdiction over my Wyoming LLC...I get sued and lose the creditor submits the order for foreclosure of interest from Illinois to Wyoming court and Wyoming court must accept that order.

[@WBMservices]

Let's say that you get sued and now a judgment against you. If this lawsuit occurred in one of the 45 states (such as CA) that don't have laws protecting the single member LLCs from charging orders that they turn into a forced sale of the LLC interest, then isn't the Wyoming LLC worthless? In other words, if the lawsuit was in California, then the judge will use California LLC law (not Wyoming). Thanks for any input on this and your video.

[@user-mr1ys2fd8u]

I noticed that a traditional bank account wasn’t listed, would those be protected from charging orders as well?

[@sharonwinsmith]

Yes if the account is held through the LLC.

[@barrywittine6513]

Hi. I invested in my first syndication using my new WY LLC. I set it up with them using my LLC EIN. Then they asked if the LLC was a disregarded entity. When I said it was they required my SS. Is this common?

[@thegzak]

Where did you find the syndication btw? I’m interested in this type of investment but have no clue where to look to find one.

[@DM-yt5ct]

I thought I read on Wyoming's website that there is a tax for an LLC? The multiplier was not very much. So I would not have to pay any tax on dividends and capital gains in Wyoming? Just in the state that I reside in, correct? Thanks

[@sharonwinsmith]

There are LLC filing fees in WY but no state tax for Wyoming. You may have a filing and tax due in your home state.

[@JC-nh6ud]

I am confused. If I get sued, and I cannot make distributions because if I do, they go to the creditor, what did I gain? The money is there but I cannot access it. I honestly do not understand how this is a benefit.

[@TravelerJerryLee]

If there is a Charging Order against your WY LLC then instead of taking a "distribution" a work around is that you take out a loan against the LLC funds and set favorable terms for the loan repayment.

[@JC-nh6ud]

@@TravelerJerryLeethanks. That makes more sense.

[@kevinkchang]

When private investigators do an asset search through a bank search, can our annominity be compromised if our personal names and social are associated with the Wyoming LLC bank / brokerage accounts?

[@sharonwinsmith]

There is actually a new law called the Corporate Transparency Act that is likely going to require the names of the LLC owner and SSN to be proactively reported any way.

[@CKevni]

Thank you. Yes I heard about this. Is this transparency mainly for the govt? Or will it greatly minimize annominity against creditors you think?

[@sharonwinsmith]

I think it is mainly for the government intended to crack down on people illegally hiding money

[@CKevni]

@@sharonwinsmith thank you so much. Happy new year!

[@sharonwinsmith]

Happy New Year!

[@plauo9913]

Is a Nevis LLC better than a Wyoming LLC ? Myself I am european and live in Thailand. I invets in stocks on IB and have real estate in thailand. Which LLC would you suggest me please ?

[@sharonwinsmith]

The WY LLC asset protection strategy would be for U.S. individuals who are at risk of lawsuits in the U.S. I'm not sure that's your fact pattern based on what you said.

[@plauo9913]

Thank you for your answer, should I not use any asset protection structure ? For real estate I may buy in europe and asia, stocks, crypto or anything else. I assume I am also at risk of lawsuits anywhere in the world, and also when getting married I will have protection for my assets incase it goes wrong.@@sharonwinsmith

[@sharonwinsmith]

I would check with a lawyer practicing in the country where you are potentially exposed to lawsuits which would primarily be your country of residence.

[@plauo9913]

@@sharonwinsmith thank you for your answers.

[@hondafireblade2536]

I subscribed because of your joke alone.. "bob is a bad driver because he's a man.. " - too funny! Btw.. I'm a man! And an accident-free driver... Who knew!