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Which State Should Non U S Residents Form an LLC And What to AVOID!// Serie - YouTube
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There is so much hype online
about where to open your LLC.
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And while it is, I guess it is a
big decision for most of my clients.
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It doesn't make that big of a difference
when you go to any of the hyped up states.
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And let me explain first, let's
take a step back for US residents
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and people who live in the United.
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You should probably just
register an LLC in the state
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where you live and do business.
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This will be cheaper for you in
the long run and easier and easier
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to comply with local regulations.
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That's fine.
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So I got that out of the way.
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If you, if you end up, if you're based
in the US and you're in Florida, but
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you want a Delaware company, it's fine.
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It'll work, but you need better
reasons than just to pay no taxes.
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Cause it doesn't really work like that.
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You still have to pay Florida taxes.
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If you live and do business in Florida.
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So that said most of my clients and the
people I work with are non-residents.
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And they'll say things like, um, there's,
there's the big, the big four, I guess
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Delaware, Wyoming, Nevada, and New Mexico
are the most popular ones that I see.
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I don't see that many in
Nevada, to be honest with you.
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It's mostly Delaware,
Wyoming, and New Mexico.
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And I'll talk about some
differences between these what I
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like the most and what you should
consider when you're opening it.
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So, first of all, all of these options
will maintain the privacy of the owner.
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They don't see who the owner is.
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And you generally have an
attorney or a third-party opening
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the company on your behalf.
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So the state won't even know
who you are, and that's the
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same for all of these options.
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Every option in a, basically every
state requires a registered agent
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and that's nothing new and you
have to, usually you pay for that.
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And usually it's the same
across all the states.
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The filing fees for opening
these companies are a little bit.
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Nevada is a little bit higher.
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Delaware's I think a little lower,
but the renewal cost is a little
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more, uh, and then Wyoming and
New Mexico are the cheapest.
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Wyoming actually has a renewal
that you have to do every
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year where you have to pay.
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Um, you have to pay the state to, um,
to renew the company and keep it in
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legal status, which is about $150.
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Whereas New Mexico doesn't have this.
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Delaware's a $300 annual renewal,
so it's a little bit more expensive.
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So apart from that, From a tax
standpoint, they're all exactly the same.
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You can open a Florida, LLC, a New York,
LLC, a Delaware, LLC, a California LLC.
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And, and as a non-resident with no US
trader business, you still won't pay
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taxes in the US . So there's no benefit
of this state or that state in that
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instance for a US corporation, uh, I
would generally use Delaware or Wyoming
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because they don't have corporate taxes.
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Uh, the same way that other states do.
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Whereas if you had a Florida
corporation, you're paying, I think 4.5%.
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Don't quote me on that.
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I didn't, I didn't research it, be paying
some in your case, you're paying income
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taxes and your profit, depending the
there's also $50,000 exemption in Florida.
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So if you're using an LLC, like
I said, you're non-resident
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with no us source income.
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New Mexico is a fine choice.
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Wyoming's a good choice.
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And so is Delaware again?
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I don't like Nevada as
much, a little more.
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The, the pro with New Mexico is
a little cheaper in the long run.
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Um, but I, for most of my clients
use Wyoming and this is the biggest
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reason I use Wyoming for the LLC.
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There's two reasons.
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First it's a little bit cheaper.
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That's fine.
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It's not the most important thing.
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Um, the second thing I like about
Wyoming LLCs over Delaware, and
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I'm not going to comment much on
New Mexico because I haven't opened
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very many New Mexico companies.
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It's generally a Wyoming, cause I just
liked the way their back office works.
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I like the, um, the way the speed
in which they issue the documents.
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And I like the way that
they're set up and structured.
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Um, another thing that I like, the
reason I don't usually go with Delaware
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is because at this point, Delaware is
on the black list of certain countries.
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For example, I believe in
Brazil, it's a, it's a tax saver.
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Delaware's why.
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So it's kind of interesting that they
have the same tax impacts, but one is
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a blacklisted and the other one isn't.
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So it's right now, Wyoming is less,
is more, is less infamous to me than
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Delaware is Delaware is like this big
corporate tax Heaven, a thing that a
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lot of, uh, people will look at it.
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Like when, when reality Wyoming
has the same exact tax impacts.
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So, I mean, I'm giving you
insights into how I look at it and
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what what's, what I usually do.
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However, The truth is, and the most
important thing is that the income
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tax differences don't really matter.
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And the there's no differences
in the sales taxes generally.
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And then also, um, the fees are
pretty similar in doing this as well.
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So with an LLC, it really doesn't matter.
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I usually pick Wyoming.
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Uh, New Mexico is a fine choice.
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So as Delaware, so as Nevada,
Florida is fine, it's not private.
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Uh, you can look up who the owner.
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But really from a tax standpoint, it
doesn't matter if you don't have nothing
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to hide, then there's no reason that you
wouldn't want a Florida company instead,
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you know, it doesn't matter that much.
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So my point for this video is to just
start already open the company and get
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rolling and see what you can do with it.
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See if you can make some money when
we're talking about a corporation, which
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I don't know if ads is that really the
whole point of this video is going to
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be first where you're doing business
is where you would want to open it.
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Second would be in either a state with
no income taxes like Delaware or Wyoming.
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And then third thing you want to
consider is the, is the governance and
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the corporate governance, most major
companies use Delaware because of the,
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uh, how did he say that there, how the,
the, the laws that have been passed and
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the, and the precedent that has been.
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Uh, in terms as the, a, of like publicly
traded companies and the rules for
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ownership and all those different
things, it's has more historical, um,
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private industry favored laws, which
have been supported by the precedent
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and are easy to cite going forward.
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I'm not an attorney, so I don't
know that much about that stuff.
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And I haven't dealt with any clients
that have specifically had to.
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Pre previous illegal code
and legal decisions cited are
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that happened in Delaware.
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So I don't have a lot of experience with
that, but that is something that if you
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have a huge company, you would want to
consider, and hopefully if you have a
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huge company, you're not using videos on
the internet to make your decisions, you
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probably seeking a proper legal counsel.
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So I hope this video is helpful.
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I hope it cut through a lot
of the BS that's out there
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and that you're able to use.
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To more quickly and efficiently
start your us business and find
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all the success that you deserve.
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I hope that you enjoyed the
video like and subscribe and
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I'll see you on the next one.
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Thanks.
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