Incorporate or Form an LLC: Wyoming vs. Delaware

October 1st, 2014 by Matt Knee

If you’re thinking about incorporating or forming your LLC in Wyoming or Delaware, you might be wondering which state to choose and why. Both offer a “business-friendly” environment but each has different benefits–and drawbacks–depending on factors such as your type of entity, your industry and the size of your company. For example, many larger corporations incorporate in Delaware due to its business-oriented legal system, but a one-person corporation may be more drawn to Wyoming’s low fees and taxes.

Although Wyoming has been in the game for a long time and was in fact, the inventor of the American LLC (currently the entity of choice among our clients), you’ve probably heard more about Delaware because it’s the home of many Fortune 500 companies. Delaware has been an incorporation hub since the early 1900’s. It’s big business. Is your company growing fast with high-profile potential and plans to become publicly-traded? Delaware might be the right choice for you.

For the small business owner, starting a Wyoming company has distinct advantages. Wyoming requires a minimal filing fee and the annual report is only $50 in most cases. You won’t pay a franchise tax in Wyoming and there is no state income tax. If you have an existing corporation that was filed in your home state and you’re tired of the state raising fees and changing its business requirements, you can move your company to Wyoming with little hassle.

For a better look at what each state offers, we’ve created this side-by-side comparison of Wyoming vs. Delaware:

Compare Wyoming Delaware
No corporate income tax X
No state personal income tax X
No franchise tax X
No state tax on corporate shares X X
Low filing fees X
Low annual fees X
One-person corporation is allowed X X
No annual report required until the anniversary of the formation date X
Corporation shareholders are not listed with the state X X
LLC members are not listed with the state X X
Unlimited stock of any par value is allowed X X
No minimum capital requirements X X
Officers, directors, employees and agents are statutorily indemnified X
Can adopt a corporation formed in another state X
Meetings may be held anywhere X X

One important thing to remember in choosing is that companies are only authorized to do business in their state of formation. That means that if you incorporate in Wyoming, but your physical business is located in California, the state of California will require you to file additional paperwork to “foreign qualify” your Wyoming corporation as a California corporation before it can operate as a business at home. Yes, it can be confusing. And expensive. That’s why the majority of small business owners file their companies in their home state, unless they have a very specific reason to incorporate in Wyoming or Delaware.

For more information about which state to choose, please visit our state page.


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MyCompanyForms™ – Your Lifetime Business Forms Solution

September 16th, 2014 by Matt Knee

Why waste time and money when you don’t have to? MyNewCompany.com has created MyCompanyForms™ to provide you with all the important documents that’ll help you run your business for the long-term. For a one-time purchase of just $35, you’ll have lifetime access to more than 200 constantly-updated business forms to assist you with starting, operating and growing your company!

MyCompanyForms™ is perfect for all business owners whether you’re in the startup phase or operational. New entrepreneurs can benefit from our handbooks and checklists to properly set up your company from the get-go. Existing business owners can save money in legal and tax fees with our annual checklists, tax guides and popular business forms. Did you file your LLC formation or incorporation paperwork with your state on your own? No problem! Our company forms can walk you through the important “after-formation” tasks to make sure you don’t miss any crucial steps in organizing your new business.

How does it work? Simply order the forms as a standalone product or when you file an LLC or Corporation with us. Then visit our My Account section for immediate lifetime access to a digital business library including:

  • Startup Checklists for DBA’s, Corporations and LLC’s
  • The New Corporation Handbook, The New LLC Handbook
  • Compliance Guides
  • IRS Tax Guides, Calendars and More
  • Corporation Forms: Bylaws, Minutes and Resolutions
  • LLC Forms: Operating Agreements, Minutes and Resolutions
  • Dozens of Categorized Business Forms

Are you starting a company today? MyCompanyForms™ is included with our Entrepreneur and Complete Incorporation and LLC Formation Packages!

Five Reasons We’re a Great LegalZoom Alternative

August 20th, 2014 by Matt Knee

You’ve seen their commercials (featuring OJ Simpson’s attorney), but does that really mean LegalZoom is the best choice for starting your small business? Think of it this way: is the huge chain Italian restaurant franchise better than the tiny Italian bistro in your neighborhood–where every dish is prepared by real Italians–just because they advertise on television? We’ll let you decide, but we feel pretty confident that we can do better than the big guys when it comes to starting your company.

First of all, we understand that going into business for yourself can be complicated and even scary. We’re a real small business ourselves, so we’ve been there before. LegalZoom is a huge warehouse of legal services (Wills, Divorces, Bankruptcies, etc.) with only a fraction devoted to small business. Our incorporation and LLC formation service was designed specifically to meet the needs of small business owners.

Now let’s talk about cost. Our basic package starts at just $79 plus your state fee. That’s a lot easier on your wallet than their $149 basic package (as of this date of publication), and ours includes more. Do a side-by-side comparison of what you get with us versus what you get with LegalZoom. Running a business can be expensive. Starting a business doesn’t have to be.

We believe in honesty and won’t hit you with hidden fees or excessive charges, ever. For example, we charge only $45 to obtain your Federal tax ID. LegalZoom will charge you $79.

Personalized service is a benchmark of what we do. During business hours, you will always reach a live person or a quick call back (or response to your email), usually within ten minutes. Every member of our client services team can access your account and tell you the status of your order. We run a small, casual shop where everybody knows each other. LegalZoom, on the other hand, has more than six hundred employees.

Finally, just do some research: search for “Legalzoom complaints” on Google. Do the same for us and see the difference. As a LegalZoom alternative, we offer some of the lowest prices in the industry, fast turnaround and a 100% satisfaction guarantee.

Useful Post on 1099 Forms

January 8th, 2014 by Chris

Small Business Tends has a useful post up on How and When to Prepare 1099 Forms for Independent Workers.

Our page on Hiring Employees & Processing Payroll is also a great resource for small business owners.

Starting a US Company as a Non-Citizen

December 11th, 2013 by Chris

One of the most common questions that we get at MyNewCompany.com is what is involved in starting a US company as a non-US citizen.  We’ve created a Checklist page on “How to Start a Company in the USA” that can be viewed here: http://www.mynewcompany.com/international.htm that lists all of the steps and procedures for starting a new US company as a non-citizen.