Top 5 States To Form An LLC

Discover the top 5 states to form an LLC! In this video, I'll unveil the best states for LLC formation, considering asset protection, taxes, and more. From Wyoming to Nevada to Alaska, find out which state aligns with your business goals.
🔗 Master Asset Protection: Join our Free Tax & Asset Protection Workshop and learn how to maintain anonymity and protect your assets: aba.link/d6fcdb
📊 Best States for LLC Formation: Dive into the specifics with my comprehensive list: 👉docs.google.com/spreadsheets/...
🔑 Key Insight "The omission of the word 'exclusive' leaves room for interpretation." - 8:17
Considering starting or scaling your business? An LLC is an excellent choice for reducing liability and enhancing flexibility. If you're eyeing states with favorable business climates and lower living costs, our top 5 list is a must-see. Navigate the complexities of taxes, paperwork, and more with ease.
By the end of this video, you'll be equipped to make an informed decision on the ideal state for your LLC.
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Video Breakdown:
0:00 Intro
0:19 What to Look For in an LLC-friendly State
1:32 Analyzing the State Chart
2:30 Asset Protection Insights
5:00 Deep Dive into the Chart
8:24 Tax Implications
9:27 A Look at Colorado
10:19 Outro
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#llc #assetprotection #clintcoons

[@ClintCoons]

🔗 Master Asset Protection: Join our Free Tax & Asset Protection Workshop and learn how to maintain anonymity and protect your assets: aba.link/d6fcdb

[@paulross2979]

thank you for the valuable info

[@cadaoxaxua]

Thank you so much!🙏

[@realestatejunkie0414]

Awesome video! Thanks a bunch

[@steveh1460]

Amazing info as usual! Thanks Clint!

[@ClintCoons]

My pleasure!

[@ttone2330]

Yoooo Thank you soo much for doing your homework...This is a Great, Informative, peace of calculated precision guided art. Thank you

[@ClintCoons]

@ttone2330 Thanks for watching.

[@vinniefondario9092]

Hey thank you Brother. Very valuable information and great delivery. God bless you!

[@ClintCoons]

Glad it was helpful!

[@MastermindAstrology]

This is informative. Thank u

[@georgevrba5614]

Awesome amount of work and great info. Thanks so much for the update on Texas!!

[@ClintCoons]

Glad you enjoyed it!

[@acrazysaru]

Thanks so much for this Info. I am starting my first LLC and this is super helpful!

[@ClintCoons]

You're so welcome!

[@pepecebolla69]

This is very informative and opportune for me, thanks!!

[@ClintCoons]

You're very welcome!

[@klitsuk]

Great vid Clint. Thanks!

[@ClintCoons]

Glad you enjoyed it

[@nickdepaula8236]

God Bless You and your work!

[@johnjdailey]

Great work. Thank you for the info in the video and spreadsheet.

[@ClintCoons]

Glad it was helpful!

[@delusionalvoid7146]

Great information. Thanks . Really needed that !!

[@ClintCoons]

Glad it was helpful!

[@jalabi99]

Alaska? Wow, who knew? Clint knew, that's who! 😀

[@ELconomics101]

Let's go coach!!

[@martinfelix4203]

Thanks a lot

[@Aeryaunne137]

Super helpful!✨

[@ClintCoons]

Glad you think so!

[@aminebenkhouya7295]

Thank you sir

[@csmith1]

Thanks Clint. Really helpful. I think I'm going to look a bit deeper at Delaware and Wyoming.

[@owlincubator9773]

Thanks a ton!

[@ClintCoons]

You're welcome!

[@frankmartinez2987]

Thanks for this! New Mexico is so close but still so far away. 😢

[@ReAl-uu8ku]

Excellent video!

[@ClintCoons]

Glad you liked it!

[@EPYes]

Thorough video 😎

[@ClintCoons]

@EPYes Thanks for watching.

[@HopeProphecy]

Great info! Could you create a video, or are you aware of a similar resource, that shows the anonymity levels of each state, including what is required to be disclosed when foreign-filing?

[@ClintCoons]

When FF it will depend on the state. If the state wants to know who is the manger then you must disclose.

[@jessicamann684]

Clint, Montana does offer some form of aninimity when constructed correctly, but it charges a a tax on non-titled assets of several percent annually.

[@JenKH86]

Great video with lots of information clearly explained! Question on the recommended structure in the example at the end: why would you not set up an LLC in WY to hold the rental, qualify that LLC to do business in CA, then have that LLC owned by another WY LLC (that is not qualified in CA)? Thinking about minimizing the fees (e.g. annual filing fees in CA) while still keeping WY asset protection and anonymity benefits.

[@TheLunchboxCakery]

Great channel, thanks so much! So if we've already screwed up and created a single member LLC (restaurant, S-Corp election) in a white state (GA), how can we now protect that LLC with a SM WY holding LLC? For instance in the case of being sued individually and the creditor gets a judgment and then goes after your SMLLC that is profitable. Better to assign 100% interest to WY LLC or create a MMLLC in GA somehow? And are there tax implications/filing status disruptions in doing this?

[@Bestvideocalgary]

best video about LLC

[@ClintCoons]

Thanks

[@bekirfilizdag8044]

thank you so much Clint you are the best! Which state do you think those living outside the country should choose? i live in Turkey

[@ClintCoons]

Wyoming. We work with many foreign investors.

[@lovelypanda222]

My properties are currently in Delaware. Do you recommend DE LLC for the properties PLUS a DE Holding LLC or a Wyoming Holding LLC?

[@maha-rf5pw]

Thank you for the video. I just have a question i hope you can help me. If my property is in oaklahoma, can i set up the llc in wyomming? Or i can only setup the llc where the property is located and then just create a wyomming holding llc? Thank you

[@ClintCoons]

The latter is the proper approach

[@2MarketSongs]

Good morning Clint, Excellent information as usual! Also, what if the alleged bank mortgage creditor or debt collector violated the Judicial Foreclosure Act, making it an unsecured credit application, based on U.C.C. § 9-210, and collector does not provide an alleged contractual relationship, a right to an authenticated record of accounting. A request for a statement of account, for an authenticated record of the accounting, from the financial account numbered suspicious mortgage? Have Amazing Days! Appreciate it. Peace always

[@ClintCoons]

Sounds like you would need a good debt collection attorney. Outside of my lane - sorry.

[@2MarketSongs]

Appreciate your Great Informational Lessons! Peace always

[@Darrell_lewis_massage_realtor]

Wait, TEXAS has SINGLE MEMBER CHARGING ORDER NOW? When did this change? I thought Texas was at the whim of the judge. I’m trying to triple verify since I have business credit on a Texas Entity. I could literally get sued for refusing to show a home to someone who calls me at 2 AM. Covering my bases here 😅

[@mistermister8998]

He said it happened this year

[@Greatness-nb9kl]

Thanks so much for this very important information! Question: what document or information do you provide to a local bank that demonstrates you are authorized to open a business bank account, if say for instance you have WY llc that owns as single-member the state llc?

[@ClintCoons]

Operating agreement and EIN letter from IRS.

[@Greatness-nb9kl]

@@ClintCoons Thanks!

[@diose0078]

Clint, I just found your channel a couple of hours ago. I have subscribed and liked the videos I have watched. I also would like to THANK YOU for all your great educational videos. I have a question, I'm new to all of this and don't own a rental property yet, but I'm working on it. I live in NY. Can I just go ahead and open a Wyoming LLC for my first rental property? Thank You in advance for your reply.

[@ClintCoons]

The WY LLC would be your holding LLC and the real estate LLC will be set up for the property. So yes you can open up the holding LLC and then create the real estate LLC when you find a property.

[@diose0078]

@@ClintCoons< Thank You, for your reply.

[@Frankiep72]

Great video! Is an LLC who sole member is a living trust(husband and wife as co-trustees) considered a single or multi-member LLC?

[@ClintCoons]

It can be either depending on what you elect and how it is structured

[@coppersulphate002]

It was very hard to read that chart. It was too far and fuzzy! But thanks for the info

[@cesarbescobar]

If I have a rental car/chauffeur businesses in Texas could I create an LLC in Wyoming or should I create the LLC in Texas?

[@303Estates]

I followed your great advice nd set up a Wyoming LLC. How can I use that to keep a sale of rental properties on the down low of IRS (or maybe a land trust). IS this doable?

[@ClintCoons]

The WY LLC will own the state specific LLCs that hold title to your rental properties or serve as the beneficiary of a land trust.

[@Raj-tz5dx]

Thanks a lot for the good information. I have won my own primary property in California. I may expect any future potential lawsuits I may end up losing my house and my bank-holding assets of money. Is it possible for me can open LCC for my primary home? I do not own any rental property. In California law, the California homestead exemption protects up to $600,000 for a primary home. My home is worth more than $1M, If I open LCC is it good for any lawsuits that protect my house and My money. Need your advice and input.

[@ClintCoons]

I would not open an LLC for your residence. The LLC needs a business purpose. A court would most likely not respect the LLC.

[@focertain]

Have you looked up American Samoa for LLC please?

[@ClintCoons]

I have not but I will now.

[@mikejames9035]

I’m confused about the charging order protection for a red state (non-charging order state) with a green state (charging order state) as a member. Couldn’t a creditor “take” the assets of the red state llc? So if revenue is due to the member (the charging order llc), a creditor could have the money directed to their banks when distributing occurred correct?

[@ClintCoons]

Yes, in a red state the creditor can take your LLC.

[@mikejames9035]

Thanks! @@ClintCoons

[@matthewcordova6217]

What about New Mexico it was in the white? Does it have charging order protection? Everyone is always talking about New Mexico..

[@ClintCoons]

It is not the exclusive remedy in NM

[@salreyes3215]

Dose rgis updated law inTexas cover exiting LLC'S

[@ClintCoons]

Yes

[@gomezabel8880]

For the sake of anonymity I want to open a llc in Delaware or Nevada or Wyoming, but I still have to register as a foreign out of state company with the state of California, and pay California franchise taxes. Doesn't that cancel the benefits of registering in one of the five states?

[@ClintCoons]

You only register in CA if you are conducting an active business in CA. If you are referring to the FTB then that is different. Registering with the FTB does not blow your anonymity. We have done this thousands of times for our CA clients.

[@adriana3489]

If I start Whyoming LLC , but live in California . Will I have an issue opening business account if I'm a resident CA?

[@ClintCoons]

No, you will not, but first I suggest meeting with one of our strategists to see if this makes sense for your situation. To learn more, you can register for one of our upcoming Livestream 1-day Tax and Asset Protection Classes for Real Estate Investors. Here is the link: aba.link/KZbinAP.

[@jeremyleonbarlow]

Given that the Delaware Gross Reciept Tax is only on gross reciepts from retail or wholesale operations or service sales in Delaware -a relatively small state, it looks like Delaware beats out Wyoming on the annual fees and taxes side of things in some instances. I mean with the $60 or 0.0002% of total value of assets held in Wyoming, if you were for example the recent $Billion Megamillions winner from Florida, their choice of paying $300 to Delaware as an annual fee versus possibly more than $100k in fees to Wyoming if they use that entity as a holding company for a stock and bond portfolio that most responsible winners will set up to preserve and grow the assets for future generations seems fiscally prudent. It also makes Delaware the number 1 choice for any holding company use in my opinion overall. I mean because does the Wyoming holding company typically own real estate sitused in other states? No, it holds personal property with enormous value in other LLCs in Wyoming which happen to own real estate in other states that create the value in those personal property assets of the LLC membership interests

[@matthewcordova6217]

Okay Clint so I’m a young investor that lives in New Mexico. From your videos the way to get charging order protection is if I have rentals in Texas and NM is to make the LLC in whichever state I hold the rental property. Then make the wyoming LLC as the owner. Then I would have to make another LLC in NM that would own the wyoming LLC because that’s where I live correct and I’m running my business? So a total of three LLCs to get charging order protection since I live in a state that doesn’t really have it on a bad day. The wyoming LLC would have to foreign file in New Mexico since that’s where I’m running the business. Therefore the wyoming llc that owns the texas llc wouldn’t have to foreign file in texas since it’s just owning the property correct? I’ve made a rookie mistake I have a NM LLC with a texas property that’s managed by a pm company in their name so I’m thinking my NM LLC will have to foreign file in Texas. I’m starting to grow so i’m trying to do things right. I understand that Texas has fees if I wait to foreign file and it’s almost been a year for me. At this point I would pay someone to help me out for my situation.

[@ClintCoons]

You would set up a WY LLC that will own 100% of your NM and TX LLCs. Total of 3 LLCs.1 WY, 1 TX and 1 NM

[@makiavelli6101]

One item that I haven't heard you, Toby or any other professional speak about is if one has to have a business or personal PO Box or physical address in Wyoming...or any of these other states. Do we?

[@ClintCoons]

I have. Look for my video on Virtual Business Address.

[@makiavelli6101]

@@ClintCoons thanks, will do.

[@whymindsetmatters]

I've heard you mention before to place Commercial real estate in a DE LLC and Residential Real Estate in WY. Is this still accurate information?

[@ClintCoons]

For the most part yes if you are doing a commercial deal with a CMBS loan or portfolio you may want to lean toward DE over WY.

[@utahhomegirl9430]

If we move our LLC to be owned by a green state LLC because we want anonymity, when we buy real estate in another state do we then have to disclose identity? or only the green state LLC identity? Can we avoid the "disqualified" individuals who can buy an asset owned by a SOLO????

[@ClintCoons]

You do not disclose your identity when buying in a state outside of WY because your WY LLC will be the sole member of the property state LLC. As to the solo question, no you can not get around the prohibited transaction issues with a Wyoming LLC.

[@khalidali6655]

If I set up the holding in WY, have the WY llc own the IL llc. How would I go about opening a bank account?

[@ClintCoons]

With your local bank but provide them a local address and do not use a WY address.

[@khalidali6655]

@ClintCoons thanks and am I asking the question right? What one doesn't want to do is open a WY llc and register as a foreign agent in IL to open an account? It's better just to make the WY llc the owner when obtaining the IL llc to open the account?

[@murshed12]

No one can deny but appreciate. However, I have some questions: 1. Should I pay Franchise and Gross receipts tax as a non us resident? 2. What about Quarterly Sell Tax and Annual Tax for those who do Amazon wholesale business as a non us resident?

[@ClintCoons]

You will need to consult a CPA on this one. Generally, if you are running a business in the US you will need to pay taxes.

[@JeffRozanVideos]

His list at 7:01

[@All_Amin]

Where can I find this chart you made ? Can you make it public to everyone ?

[@ClintCoons]

Show notes

[@knpstrr]

If a single member llc is a pass through entity, how do you not "pay out" your share in the event of a charging order? I thought pay out is automatic since it pass through

[@strohmeyerlawpllc]

Pass through is a tax concept. Absent an election, a single member LLC is disregarded for federal income tax purposes, so the income, deductions, and credits go to the owner/member automatically. The sole member reports everything on their own tax return, regardless of distributions. The idea is to make ownership of the interest in the entity financially painful for the creditor because they own the interest, but have to pay income tax on the revenue generated without getting any distributions to pay the tax. Charging-order protection is a separate concept based on state-level corporate law. It stops an entity from having to make a distribution, which could upset the operation of the business. This protection will work if the creditor doesn't seize enough of the entity to control it. But if the creditor succeeds in seizing 100% of the entity, then the creditor can and will authorize the distribution of everything inside the LLC. How could this happen? Assume the Danny Debtor injures Cindy Creditor. Danny Debtor had previously put all of his $500,000 of non-exempt assets inside a single-member LLC. Cindy Creditor doesn't settle, wins at trial, and gets a verdict for $1,000,000. When it comes time to collect on the judgment, during post-judgment discovery, Danny Debtor must disclose the existence of the LLC and its value. Cindy Creditor will seize 100% of the LLC interest and distribute whatever's inside the LLC to satisfy the judgment. She'd still be able to collect on the other $500,000 as well.

[@ClintCoons]

Loan it to yourself. 😀

[@Darrell_lewis_massage_realtor]

@@ClintCoons @0% interest and 0 payments for 36 years… I mean month? Is that too extreme??

[@TobyMathis]

@@Darrell_lewis_massage_realtor Yes you must charge reasonable interest rate

[@dark11demon11]

you look like Cable

[@mistermister8998]

I remember a previous video where you listed Oklahoma as a good state to have an LLC in but here you had it in the red. What changed? Thanks

[@ClintCoons]

It is based on either case law or statute.