It might seem fascinating to start your business, but it indeed needs a lot of care and dedication. As an entrepreneur, you are required to deal with many issues, including financing, sales, marketing, legal, liability protection, human resources, intellectual property protection. There can be many hurdles during your business, for instance, having sufficient cash flow, finding better investors, arranging corporate credit lines, keeping separate taxation, and many more.
It is pretty evident that starting a new business or a company is very tough and challenging, but it has a lot to reward you if you can think wisely. The one wise step that you choose is using a Shelf Company to start your new business. Shelf Corporation is a company put on the shelf for several years to age and sold to a person in need.
When you have decided to start your business, another essential thing to consider is the choice of the state where you want to incorporate your company. It means that you are required to select the state where you want your shelf company to be registered.
Why is it important to choose the state of incorporation?
The owner of the company always has two options while registering the business. The first one is that he can register the company in a similar state where the company will operate, and the second option is to register the company in some other state.
Now, the question arises that why is it even crucial to think about the state of incorporation? Well, it is because you can save a considerable amount of taxes if you choose your state of incorporation wisely. In simpler words, we can say that different states have different tax structures, and selecting the correct state can help you avoid corporate income tax.
Also Read: AMERICA’S TOP 3 STATES FOR BUSINESS
Why can Wyoming be an excellent choice for your Shelf Company?
Nowadays, it is often seen that many companies prefer getting incorporated in Wyoming. The simple reason for this is the lower administrative costs in Wyoming. When compared to other states like Nevada and Delaware, the administrative costs are very much less. Wyoming is the state called tax heaven, meaning that it has to offer wealth-friendly tax policies.
Additionally, Wyoming offers many laws to protect business owners from losing their assets, and the state never asks for the tax ID number of the companies and businesses.
The benefits of starting your business in Wyoming include:
- The state doesn’t have income taxes.
- Wyoming offers the best privacy laws to protect your assets.
- The costs to set up the companies in Wyoming are significantly less.
- You can easily set up your business in Wyoming, even if you aren’t a citizen of the United States.
- The state never collects any personal income taxes because it has a massive budget for fiscal health.
You can quickly start your business in Wyoming in 7 simple steps:
- The first step is to decide the structure of your business. For instance, you can choose among sole proprietorship, partnership, Inc., and LLC. The most beneficial structure to start your business with is a Limited Liability Company (LLC).
- After selecting the entity structure, you are required to choose a suitable name for your company, and the name must contain the identifier for the company. For example, Corp, if it’s a corporation and LLC, is a Limited Liability Company. Always keep in mind that the your company’s name should be different from already existing companies in Wyoming.
- File a government document containing the company’s management and ownership.
- After the steps mentioned above, your business is ready to be set up in the state, and you are required to file a formation document with State’s Secretary.
- After that, you are required to apply for EIN, i.e., Employer Identification Number issued by the Internal revenue Service.
- Then, you must open bank accounts so as to process monetary transactions of the company and keep in mind that it is always straightforward to open a Wyoming business account. You will be requiring articles of incorporation, an initial resolution authorizing the accounts’ opening and operation agreement to open your account.
- You can then acquire the business license if required.
List of few shelf Companies incorporated in Wyoming:
- Global Village Advertising, Inc. – It was incorporated in February 2007 and priced at $3,995.
- Institute of Estate planning, LLC – It was incorporated in March 2007 and priced at $3,995.
- Real Estate Partners, Inc. – It was incorporated in May 2007 and priced at $3,995.
- Development Services of Wyoming, LLC – It was incorporated in June 2007 and priced at $3,995.
- Investigate Services, Inc. -It was incorporated in August 2007 and priced at $3,895.
- Property Finance Corp. – It was incorporated in September 2007 and priced at $3,895.
- Digital Funding Corporation – It was incorporated in November 2007 and priced at $3,895.
- Amazing Systems LLC with URL – It was incorporated in July 2008 and priced at $4,995.
- Beneficial Advisors, LLC – It was incorporated in June 2020 and priced at $1,395.
- My Future Fund, LLC – It was incorporated in July 2020 and priced at $1,295.
- Nano Engineering LLC – It was incorporated in August 2020 and priced at $1,195.
- Historical ventures, Inc. – It was incorporated in October 2020 and priced at $1,095.
- Corporate Capital Advisors, LLC – It was incorporated in January 2021 and priced at $895.
- Exclusive Travel Group LLC – It was incorporated in April 2021 and priced at $695.
It is pretty evident that taxation is inevitable, but they are significantly impacted by the tax structures of a particular state. We can rest assured that the states with the best tax policies will soon be the priority for the new businesses and can significantly impart economic and employability growth. According to a study in 2021, Wyoming is the most business-friendly state with the lowest possible tax rates. Hence, purchasing a shelf company in Wyoming can undoubtedly be the best and wisest possible decision to start your business.
Also Read: HOW TO SET UP AN INC. USING SHELF COMPANY