Wyoming LLCs, Reality & Bull$&! | Tax Attorney Explains...

[@JtotheRizzo]

You should always register your LLC in the state where you do business or where the property is located and make sure it's kept as a disregarded entity. BUT, your Wyoming LLC should be your Holding Co. to HOLD other operating entities and NOT the business asset itself (i.e. rental property). Now, your Wyoming entity should be taxed as an S-corp AND be the sole managing member of your operating LLC in that state of which you are operating in.

[@rrahulkhullar]

You are absolutely right on. Question - I can see the benefits of the Wyoming beung an S -Corp but C Corp is also fine too. Depending on how you want personal taxes to be included from the Companies. That being said - The Operating State entities should for most cases have a single owner (Holding company) with pass through taxation but would these would still require annual filing in that state for state taxes?

[@JtotheRizzo]

​@@rrahulkhullar ​ If the state where you are conducting business or where the property is located charges State tax, then Yes. It would get passed-through up to your WY Holding Co and the profit and losses would be reflected on your WY Holding Company's tax returns.

[@rrahulkhullar]

​@@JtotheRizzoThanks :)

[@JtotheRizzo]

​@@CaseClash If you don't have any assets or cash worth going after, then you're not worth going after - doesn't matter where you setup. For privacy, use the Wyoming holding company method. Talk to your CPA about tax considerations.

[@yosephstephens]

That's what Warren Buffet does

[@daisyO2043]

Privacy is why.

[@YOUNGBIGK]

Exactly.

[@xperiencesaecm]

Right on

[@InspiredByEbonyLove]

Paying $800 year for an LLC in California for a business selling digital goods just doesn’t sit right with me. Not for an online business

[@jerrycamonjr.9594]

Wyoming is good for the parent company

[@crazycdn8327]

Especially if you own multiple rental properties. I personally create on average one LLC in the state the property is owned in, for each rental property (I don't buy individual doors) which are in turn maybe or maybe not owned by a WY LLC.

[@dsytube]

A NY resident might want Wyoming for crypto because NY is trying so hard to make crypto illegal and there are so many limits on what a NYer can buy.

[@aaronvays2564]

from ny here. for a crypto wallet business, which state u reccomend?

[@rakumarudu81]

can you elaborate?

[@Zubair70760]

What about non resident willing to do online business

[@MTANVEERSADIQ]

Definitely Wyoming llc. He is discussing cases related to us citizens and us residents

[@ScottJLetourneau]

@@MTANVEERSADIQ@user-qm6el4ro1c There are some limitations for Wyoming, even for non-residents; for example, U.S. retailers do not like to work with non-residents who are in Wyoming because they know they set up Wyoming primarily because they are cheap and likely drop shipping. Retailers do not like to work with Wyoming drop shippers (there are exceptions, of course). Amazon is different, but they have different verification issues.

[@utube7917]

Its like $62 to register your WY LLC. So for all the benefits it offers, yes i would absolutely pay the $62 per year to add a layer of protection as a holding company to own operating companies in other states.

[@MatSorensen]

Yes, if the benefits apply to you definitely an affordable state to set up your LLC.

[@meditateattract8581]

Why use??? Anonymity. Whats wrong with having your Wyoming LLC own your State LLC so MY NAME does not show on the State LLC???

[@alancosens]

OK, but so many lawsuits also list the owner individually as the defendant. I’ve seen numerous examples where the LLC didn’t seem to protect anything. What’s the disconnect?

[@thelifecoachmedicalmodel6648]

What if you are doing business online like your crypto example? Thank you!

[@crazycdn8327]

kzbin.info/www/bejne/qZylaIeVrrahkJY

[@MatSorensen]

Great question. Please head to matsorensen.com/ and click “Ask Mat,” on the left sidebar of my website. I will be answering questions submitted on my next livestream.

[@Soulrboii]

This guy literally reply to your comment and didn’t even answer your question SMH.. Wyoming LLC is actually your best bet when it comes to crypto security they have some of the best policies and laws in place already specifically for assets

[@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?

[@yosephstephens]

No, you don't necessarily have to set up your subsidiary LLC as member-managed if your Wyoming Holding LLC is managing it. Here's a breakdown of the options and their advantages: Member-Managed vs. Manager-Managed Subsidiary LLC: Member-Managed: In a member-managed LLC, the members (owners) handle the day-to-day operations and make management decisions. In your case, this would be your Wyoming Holding LLC acting as the sole member. Manager-Managed: In a manager-managed LLC, a separate manager (or group of managers) is appointed to oversee operations. This manager can be an individual, another LLC, or even a corporation. Here, your Wyoming Holding LLC could be appointed as the manager. Advantages of Each Option for Your Scenario (Single-Member Holding Company): Member-Managed: Simpler Structure: A member-managed LLC is simpler to set up and maintain, especially for single-member LLCs. There's less paperwork and fewer formalities required for member decisions. Direct Control: The holding company (your Wyoming Holding LLC) has direct control over the subsidiary's operations through its voting rights as the sole member. Manager-Managed: Flexibility: A manager-managed structure offers more flexibility in choosing who manages the subsidiary. If you plan to involve other members in managing the subsidiary in the future, this structure can easily accommodate that. Potential Liability Shield: In some cases, appointing a separate manager (your holding company acting as the manager in this case) might create an additional layer of liability protection. However, this is a complex legal issue, and it's best to consult with an attorney to determine if it applies in your specific situation. In Conclusion: Both member-managed and manager-managed structures can work for your scenario with a single-member Wyoming Holding LLC managing a subsidiary LLC. The best choice depends on your specific needs and preferences. Here are some additional factors to consider: Complexity: If you prefer a simpler setup, member-managed might be better. Future Growth: If you anticipate adding members to manage the subsidiary in the future, a manager-managed structure offers more flexibility. Liability Concerns: Consult with an attorney to explore potential liability benefits (if any) of a manager-managed structure in your situation.

[@HopeProphecy]

@@yosephstephens thank you very much for your in-depth reply!

[@JamesJohnson46891]

If I have an online business (creating content and traveling as a speaker), but live/work in North Carolina, can I file my single-member LLC (S-Corp) in Wyoming and receive full charging order protection? (My business does not own a physical building or have additional employees here in NC). Some experts are saying "yes" and others are saying that I would have to form an LLC in the state I live/work in and form a Wyoming Holding LLC to own this foreign LLC to gain the Wyoming charging order protection. I would greatly appreciate if you could clarify, and thank you!

[@MatSorensen]

Great question. Given the complexity, please head to matsorensen.com/ and click “Ask Mat,” on the left sidebar of my website. I will be answering questions submitted on my next livestream.

[@sidshri6080]

thanks Mat, subbed! Anonimity and Charging order protection from liquidation, sale of assets.

[@candyman7466]

I think Delaware LLC has the same thing??

[@MatSorensen]

Yes, but look what just happened to Elon Musk in Delaware court!

[@midnite1235]

I learned a lot from this video! Very informative!! Can I use the Wyoming LLC, to open a bank account in my home state? THANX!!!

[@MatSorensen]

Great question. Please head to matsorensen.com/ and click “Ask Mat,” on the left sidebar of my website. I will be answering questions submitted on my next livestream.

[@robertdema]

Use Wyoming LLC as a holding company for a Land Trust which holds real estate.

[@crazycdn8327]

Or which owns LLCs for your different properties in different states. That way they just see a trust name and see it's in Wyoming and likely just take the insurance payment. It's quite expensive to break the veil of the WY LLC

[@raakgu]

How much does your law firm charge for setting up a WY LLC? My main interest is charging order protection incase of outside personal liability and possibly privacy.

[@JC-nh6ud]

I want to transfer my brokerage account to an LLC for privacy and protection. Is Wyoming a good option?

[@tangodown2721]

Seems your needs and customers arent the same as those who want WY llcs. You can do WY llc and just file another llc in your state owned by the WY llc. If youre worried about paying the fees in two states maybe youre not financially ready to run a business...the yearly fees are basically nothing. WY manager-managed, OC LLC in your state member-managed. Besides having to keep two books, accounts, and some more tax paperwork theres not a whole lot of downside to having a WY llc to hold your other llcs. Better privacy, better protections, better privacy for the states youre operating in.

[@boschulte]

4:35… a castle and a moat…. 😂 now you got my attention finally…

[@rondamon4408]

Does it worth having an llc and live abroad?

[@tradelikeapro1484]

Does depositing digital assets into a single member LLC incur a capital gain? The digital assets will not be sold. I have searched for this but cannot find an answer.

[@Kingmohit1988]

For brokerage account and other high yield saving account- is the better to own it WY LLC or in NY considering I am NY resident ?

[@diormecall9893]

If Ill own a property abroad will Wyoming Holding company LLC protect me?

[@michaellaforte6964]

At what point should you create a Cooks Island Trust, does that provide a greater buffer than a Wyoming Trust?

[@MatSorensen]

Great question. Please head to matsorensen.com/ and click “Ask Mat,” on the left sidebar of my website. I will be answering questions submitted on my next livestream.

[@nikosfarma5643]

In which state do you suggest a public speaker travellingaccross the US should start an LLC?

[@MatSorensen]

The state your home is in.

[@yosephstephens]

For a public speaker traveling across the US, there's no single "best" state to form an LLC. However, some states offer advantages that might be appealing to a mobile speaker: Factors to Consider: Formation and Annual Fees: Look for states with low formation fees and annual maintenance fees for LLCs. Taxation: Some states have no state income tax, which can be beneficial. However, even in states with income tax, public speakers might be able to deduct some business expenses, making the overall tax impact less significant. Reporting Requirements: Consider states with simpler annual reports or minimal filing requirements Registered Agent Services: Many states allow registered agent services that can handle important legal documents on your behalf. This can be helpful for someone who travels frequently. States to Consider: Here are a few states that are often recommended for LLC formation due to factors mentioned above: Wyoming: Known for low formation and maintenance fees, no state income tax, and business-friendly laws. Delaware: Popular choice for LLCs due to its well-established court system specializing in business law. However, Delaware has slightly higher fees compared to Wyoming. Nevada: No state income tax and offers benefits for single-member LLCs. Additional Considerations: Foreign Qualification: If you plan to conduct significant business in a particular state other than your home state, you might need to register (foreign qualification) your LLC in that state. This can add complexity and fees. Domicile vs. Business Location: The state where you form your LLC (domicile) isn't necessarily the same as where you conduct business (location). Speak with an attorney or accountant to understand potential tax implications for your specific situation.

[@randallwall2745]

Mat, If we have an LLC doing a lot of business as a real estate brokerage (4-7B) in Utah & 23 other states, it appears they can foreclose on the Utah LLC if you have a judgment against you and that you won't be able to pay that judgment in a timely manner.. Would a charging order protection entity be sufficient to protect from that happening? And part two is there any tax advantage to setting up in Wyoming which doesn't have state income tax?

[@CriticalErA]

How about WY LLC and using Land trusts for properties in other states? is that possible?

[@MahdiBanners]

But you don't pay state taxes in woyoming. Isn't that a good reason to have it?!

[@thegrind366]

True but does the lower tax burden outweigh the loss in benefit of having an LLC in your own state? Lawful tax minimization is important to help a firm succeed but it should be secondary to a legal arrangement that'll allow it to satisfy its operational goals. Nice-to-have versus need-to-have.

[@daisyO2043]

No because you have to file a foreign registry in the state you are actually doing business. So you still have to file taxes in the state you are doing business. If the state you are doing business has a state tax you still have to pay state taxes.

[@MahdiBanners]

@@daisyO2043 I see what you are saying and thanks for the reply. But let's take your answer, doesn't that mean I still have to pay one state tax only, a tax in the state of business operations instead of a double tax, meaning instead of paying taxes in both states, the state of registry and the state of operations?! For example, if my business were to be registered in Texas and it operates in California, then I would have to pay two state taxes. But if it were to be registered in Wyoming, then I would only pay the California tax alone. Let me know if I'm incorrect. thanks!

[@eritorigon]

Amazing information, answered all of my questions.

[@MatSorensen]

Glad it was helpful!

[@idemanddonuts]

I had thought that the reason people go with Wyoming is because of the privacy laws regarding Wyoming llc's

[@xrpcit.y1288]

I have a inactive Wyoming LLC and I recently moved to California from Florida and I plan on helping community banks and credit unions exchange value locally and cross border, in conclusion should I get a California LLC to do business here in San Diego ps Digital Assets are classified as property in Wyoming?...

[@stanmoney8470]

I have a Wyoming LLC for my holding company. Do i need a sales tax permit for it? It owns my company in another state.

[@randallcotner1258]

Finally, a quick and great explanation, with details. Just shared it on my FB feed and on a friend's feed already:)

[@MatSorensen]

Thanks Randall. I get so many questions about it.

[@nah6305]

What about a ny state trucking company. Looking to get cheaper insurance, what’s your thoughts on that

[@tomsullivan-kc4fb]

For $75 a year, it's cheap insurance to keep some litigation attorney in the dark as to who owns what. Personally, I'd prefer something that doesn't show up on my personal tax return, like a Nevada C Corp, but that's just me being paranoid.

[@jeffhaney2827]

Now with the corporate transparency Act the names will still have to be disclosed, and now if you have your trust and an llc it will be a whole new ball game. FinCen still hasn't figured out how to handle the trust in an LLC for disclosure purposes.

[@crazycdn8327]

I do not believe it will be a searchable database for lawyers. From what I read it's only for IRA/government use.

[@shawnturner1094]

This is great stuff, Mat. You’ve addressed a topic I’ve been vacillating on. However, the states I’m considering (rental) investing in next include MO, FL, and possibly OK, and I’ve recently learned that these states (as well as others) are considered “weak” states because they have “weak” charging orders where the order is NOT the exclusive remedy (which might be a reason why you used Missouri as an example perhaps?). So, would using a WY LLC as the “parent” or “holding” LLC to house/hold the LLC I form in Missouri and Florida make sense? It would seem that the WY LLC would work perfectly for these states lacking in stronger protections, no? If so, once the LLC is formed in the state where the property is, and the Wyoming LLC is also set up, is there any specific process to make sure that the Missouri LLC is “linked” to the WY LLC? Thank you!

[@acortaz3971]

Can a Wyoming llc own a Tennessee llc?

[@JovanLobban]

What if it's an online business will the state matter?

[@headlibrarian1996]

Why would a judge in my state apply WY law on charging orders? I expect them to apply the law of the venue because the parties are in their jurisdiction, making WY law very moot. I can lose the LLC if a judgment is rendered against me, no matter where it was organized.

[@AngelA-fj8ft]

What if I'm a trader, trading my own capital and that of a Prop Firm that 1009s me, trading mostly in CA, but all over the USA and the world? Sounds like this would work for me. No?

[@johnM-Jr]

privacy, charging order protection entity. how is tax paid on a wyoming llc?

[@MatSorensen]

Great question. Please head to matsorensen.com/ and click “Ask Mat,” on the left sidebar of my website. I will be answering questions submitted on my next livestream.

[@notpoliticallycorrect]

What is the value of an LLC set up in the Cook Islands?

[@ambrag2cute358]

Isnt it for lower taxes as well as privacy

[@TruckerPhilip]

Couldn't you have a WY C-Corp , obviously fir tax benefits, the C-Corp being a manager company only to manage the LLC's another or other states, the C-Corp placing Leins on all LLC' properties would that in the event someone were to sue, the lein would have to be paid first therefore leaving nothing left over

[@maafa21MustSee]

Why wouldn't one always structure their business entities for maximum efficiency and protection (which includes maximum privacy)? Do everything you are describing in the state that you conduct business in, then put all those entities in a Wyoming Holding LLC?

[@LaelMitchell]

I think people want an LLC in Wyoming to avoid taxes also Wyoming does post your public info or share financial info

[@TheMasterBrander]

bingo

[@menworkharder]

right, but you won't avoid taxes if your rental in a taxable state

[@MatSorensen]

LLCs do not save taxes, I explain that in the video. For certain individuals that meet Real Estate Investor status a Wyoming LLC can be beneficial for privacy (but that is a different discussion)

[@tikigodsrule2317]

New Mexico is better for privacy.

[@Kenny.Irons23AU]

You can consolidate tax filing into the Wyoming holding which does save. If you are in California and have 2/3 LLC’s, you have to file for those LLC’s. If those 3 businesses flow through the Wyoming holding you just file once.

[@crazycdn8327]

I may or may not have an WY LLC that owns LLC's in another state that owns a rental property. Most lawyers won't bother trying to break through the veil of the mostly anonymous nature of an WY LLC. Plus it gives you charging order protections and exclusive remedy. Meaning they cannot take my LLC, they can put basically a lean on it. But I can still loan myself money out of it and never take a distribution which they would get. Heck I could loan out most of the money in that LLC and give myself amazing terms on interest and length of time to repay. So they would never see payments in their lifetimes (whoever won a judgement against me that is). But if you're just running a plumbing business, no way you need a WY LLC. You might want all your equipment owned by another LLC so you cannot be sued and put out of business.

[@TravelerJerryLee]

Partially false. If the "owner" is actively involved in the business, think Sole Proprietor; then that owner can be named individually in a lawsuit and is not protected by the LLC regardless of the state it is in.

[@crazycdn8327]

@@TravelerJerryLee Sole Proprietor wouldn't be an LLC then, they're different things. You have SP which means your personal assets are at risk. And an LLC where your personal assets are protected, even if you're involved in the business. This is why LLC's exist.

[@TravelerJerryLee]

@@crazycdn8327 My point was that if the "owner" is personally active in the business then he or she can still be sued INDIVIDUALLY as additional named party as well as suing the company regardless of formation type or location. So just having an LLC does not "fully protect" the Owner.

[@saifulhaque5135]

What about Montana LLC for ecom business

[@MatSorensen]

Just depends on your situation, You can contact one of our attorneys if you want to be sure your entity is set up correctly. kkoslawyers.com/schedule-an-appointment/

[@ScottJLetourneau]

He is talking about U.S. residents and is correct. Non-residents often use Wyoming for e-commerce because they are not located in the U.S., and they have a choice.

[@Bloomythegoat]

What about texas LLC

[@ljdag5371]

Hello Matt, but at the end of the day, it seems they can eventually get to your asset with the Wyoming LLC. Because eventually you will sell your asset. Could be 15 20 years, but once you sell they can get the money. Is that correct? Thank you. Seems like the main advantage would be the negotiation.

[@TheMasterBrander]

statue of limitation

[@crazycdn8327]

You can keep the assets in the WY LLC, and take a loan out. They only get money if you take a distribution or close the LLC.

[@mariner1358]

I heard a Wyoming llc is for anonymity

[@alecan8890]

The umbrella llc makes since in wy

[@MrOJohn]

Mat is a wealth of information.

[@MatSorensen]

Thanks John!

[@tikigodsrule2317]

I went New Mexico. They don't share anything.

[@daisyO2043]

Wyoming is the same.

[@cryptogrrls]

Great video, thank you. If you don't live in WY but have a WY LLC, do you then need to also pay somebody for a legal vitual address and to handle mail?

[@MatSorensen]

Great question. Given the complexity, please head to matsorensen.com/ and click “Ask Mat,” on the left sidebar of my website. I will be answering questions submitted on my next livestream.

[@chowmonkey2002]

As non US citizen it opens the US market. That is a reason

[@justa8419]

Ok, but if you own multiple properties in one state and something happens in that state, can't they go after all the properties in that LLC for that state? I think that's why people have WYOMING in mind for LLC's........

[@terryseldon7446]

Don't even say nothing . I notice this type of thing pops up in contrast when it's real good info out there. No matter what area of knowledge.. " shannigans. true not all or every single llc. AS HE STARED FIRST. thrn goes on to talk as he mean u just don't want it period. YEA YEA PUT ALL UR LLC IN UR STATE . SO ITS EASY TO FO WHAT U JUST EXPLAINED.. THIS IS AN OPP TO THE ONE TAX ATTORNEY GUY coontz

[@yosephstephens]

That's not what Toby Mathis said from Anderson Advisors

[@gabriellegwen7365]

Really???? I’ve spoken to several accountants and they have all confirmed that they are now piercing the corporate vale.

[@MrZipper42]

Actually having the Wyoming LLC own the LLC that is doing business in the state you are doing business in. That way you keep your name off the papers in the state you are doing in as being owner. Also Wyoming LLC you can hide who owns it.

[@jeffreytowers7222]

The 3,467 examples you provided seemed to be a bit lacking. What if my tenant punctures their gums while brushing their teeth? Huh!?! What then, we need 3,468 examples please!

[@robertdema]

Unless you have a trust.

[@AECase]

You got millions...Impressive!!

[@surveytestmoney2550]

🤷🏾‍♀️➡️Ok so your Wyo Holding company would *control* the operating company in whichever state you're operating the LLC in. Amirite?😂

[@forumshawaii]

Great info!

[@rehousethehomeless1925]

Now, let's get down to the nuts and bolts nitty gritty. Business credit (cards). If your name *isn't* on the state filed paperwork (for *anonymity* reasons) then *how* on Earth are you going to get a *bank account* and *business credit* (cards) in your name?👀

[@lisajpsnowpeak431]

This lawyer actually thinks an LLC protects you from lawsuits. I lost respect for this immediately. Suing officers or members happens all the time.

[@lifewithjusto444]

Let’s say you do have a house in AZ don’t you create an LLC that’s owned by the WY LLC not a person

[@vinny1010]

This is why you dont listen to people like him but real legit Asset Protection Attorneys

[@LWRC]

Kalifornia LLC does not make any sense as Kalifornia does not give you any level of protection!!!

[@MTANVEERSADIQ]

For foreign nationals, Wyoming llc is the best choice

[@MatSorensen]

In some instances yes!

[@simomed5002]

@@MatSorensen I am not a USA resident and thinking about opening a US LLC, which state do you recommend the most? I heard people saying that for tax it's considered as pass through entity or something like that, which means 0% tax in the US but paying the Tax on my home country, not sure if this is the case in all states though.

[@MatSorensen]

@@simomed5002 Everyone's situation is different! Let's get you scheduled with one of the attorneys at KKOS and they go get you set up with an entity catered to your needs : kkoslawyers.com/contact-us/

[@Kevins-Rocky-Road]

"As an attorney" how can we trust you?

[@Desponderado]

holy monetisation batman, this ten minute video could be 2. repetition and waffle

[@Keniisu]

Bro is fluent in Yapanese.

[@hansel7888]

lmao but fax

[@boschulte]

Tell me you are broke, divorced for being immature and lack an attention span to pick out the relevance of good advice without telling so

[@johnj.doublej8721]

Just need a Business account, will not be selling anything.

[@acarr5972]

You’re completely ignorant of why WY LLCs are even used. 🤦

[@renegadephilosopher5996]

Wyoming llc is good for holding companies.

[@renegadephilosopher5996]

No corporate tax, No personal income tax. You want your holding company to be Wyoming because it's private and low tax.

[@renegadephilosopher5996]

Your holding company owns 100% stock in your other llc that is registered in the other states.

[@blockthis08]

4:53 Finally

[@kejreed6233]

my parent company is wyoming. that's it

[@BigA678]

4 mins into the vid and you haven’t said anything of substance wtf am I watching

[@boschulte]

Ok, go back to sleep. You need a nap.

[@cowcat7436]

ok ok ok you are talking WAY too much. we are here because we already know what an LLC is. Stick to your subject! tell us pros and cons on Wyoming LLC and what situation needs it.

[@reachyouteachyou4649]

California sucks

[@kymaneezmom]

❤🎉

[@YOUNGBIGK]

You’re repeating yourself over and over again

[@bertimus7031]

Many people choose Wyoming for the limited costs and limited filing requirements. It is good for an online business.

[@JovanLobban]

What if it's an online business will the state matter?