Why Wyoming and not Nevada for Incorporation?
Corporations planning to start up a business in either of these states must be going through their options to choose from. The picture presented in face value might not be the same and a wrong step once taken can go a long way since it’s a corporation we’re talking about. About Nevada versus Wyoming, the choice is often misguided and needs thorough research to be sound enough for incorporation in either of the states.
The problem with license fees is that in Nevada, you may be lured by the fact that fees for filing and license are less but in actual, its only one side of the picture presented to you. Right after a business is incorporated in Nevada, the journey of hidden charges begins which is very much annoying especially for the small businesses tight on their budget in the initial phase. Wyoming on the other hand, charges 92% lesser fees than those charged in Nevada for renewal. Wyoming also does not charge a hefty amount for license and filing procedure thus making it a lot easier for the startups to initiate and thrive.
Sharing of Information
Business owners in Nevada claim that they enjoy the perk of their asset information not being shared with IRS (Internal Revenue Service). Truth be told, that just makes IRS annoyed about their policies and the businesses operating in Nevada are more prone to be targeted by IRS. Wyoming, on the other hand shares information but of that only which is legally shared by the company about the real assets in the state of Wyoming.
Tax Free State
While many are attracted by Nevada for it being a tax free state and thus incorporating in Nevada. Whereas in actual, corporations in Nevada ought to pay taxes while some of them stay exempted from taxation. This only burdens the tax payers more. Some of the corporations in Nevada would be under the umbrella of taxation that rises higher than those paid in California. So while you wait for your corporation to be among the tax free one in Nevada, there would be many opportunities missed in other states more profitable.