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?

​@@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.

​@@JtotheRizzoThanks :)

​@@JtotheRizzoWhat if you don't have physical assets? Let's say it's completely online and with one member? Where would you recommend.

​@@imiparerau432 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.

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.

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

can you elaborate?

I think Delaware LLC has the same thing??

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

Glad it was helpful!

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

@@user-qm6el4ro1c@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.

Thanks Randall. I get so many questions about it.

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.

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.

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

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.

The state your home is in.

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.

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

kzfaq.info/get/bejne/qdFyareQ3rfSimg.html

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.

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

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.

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

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.

Thanks John!

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.

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.

@@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!

statue of limitation

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.

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.

@@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.

@@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.

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.

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/

Wyoming is the same.

bingo

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

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)

New Mexico is better for privacy.

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.

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

In some instances yes!

@@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.

@@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/

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

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

Bro is fluent in Yapanese.

lmao but fax

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

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