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Wyoming LLC Formation Frequently Asked Questions - FAQ

What is Offshore Affairs’s price for a Wyoming LLC formation? What is included in the price?

Our price for forming a Wyoming LLC is US$675.

 

This price includes and guarantees:

  1. Wyoming LLC Articles of  Organization

  2. EIN for non-resident foreigner.

  3. State Filling Fee

  4. Registered Agent and Address for a year

  5. Beneficial Ownership Information report to FinCEN.

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In addition, we provide some free perks, which include:

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  • Extra: Free Counseling and Guidance on the LLC taxation, management, and yearly compliance* 

  • Extra: Free referral to one or two of our fintech banking partners. 

  • Extra: Free Single Member LLC Operating Agreement Template

  • Extra: Free Automized Digital Ledger for yearly federal compliance 

  • Extra: Register of Directors

  • Extra: Register of Members

Timeframe - How long does it take to set up a Wyoming LLC?

Opening a Wyoming LLC to the point where it fully operates takes several stages.  

 

LLC Formation less than 24 hours: To open a Wyoming LLC takes us less than 24 hours after payment is received.

 

EIN: After the company is formed, we obtain the EIN, which is the company’s tax number. For a foreign-owned US Disregarded entity, obtaining the EIN has a different procedure, and timeline. For a tax-free LLC owned by a foreigner, obtaining the EIN takes at least 2 weeks, which can take up to 3 weeks. The EIN is also necessary to comply with the Benficial Ownership Information Report to FinCEN

 

Bank Account Opening: In order to apply for a Bank Account for your WYoming LLC, you must wait for your EIN number from the iRS (tax number), as banks will ask for this EIN in order to open the account. So basically, you can open the bank account in about 2 to 3 weeks after we open the company.

 

Beneficial Ownership Report: we must report the ownership of the LLC Beneficial Owner to FinCEN in 3 months after the company is formed. So we form the company one day, in 2 to 3 weeks we get the EIN, and then we report the company Beneficial Ownership Information Report to FinCEN in time, much before the deadline.

Is the bank account guaranteed under the price?

Our service includes a free perk which is assistance and full guidance in opening the LLC bank account in one or two of our banking partners. 

 

Eventhough basically none of our clients get rejected by our partner banks as we perform a previous client eligibility assessment, we are not responsible or guarantee the bank account opening, as the banks will take into consideration your personal client professional, nationality, residency, line of business, etc.

 

We advice the client before opening the company about what we think about the eligibility for the bank accounts, but even if we don’t see a problem with your client profile,

Can I open a bank account for my Wyoming LLC in traditional banks like Bank of America, Chase, JP Morgnan, etc?

Yes, you can open a bank account in these traditional banks, but these banks when the LLC is owned by a foreigner, they ask for extra requirements, and this basically that the company must have substance in the USA by way of having a rental office space in the USA, and not a virtual office.

 

We do not provide full rental office in the USA, but we can broker and get you this office space, nonetheless it is worth mentioning that this service and price is not included in our company formation fee is US$675.

As a foreign single owner of a Wyoming LLC do I need a Social Security Number or ITIN to get the EIN (tax number) for my LLC?

No. To get the EIN for a foreign-owned US Disregarded entity (LLC owned by one person who happens to be a foreigner) we don’t need the Owner to have a SSN or ITIN.

Are there taxes when you pay yourself distribution? Distribution VS Dividends

LLCs do not pay their owner’s dividends, it pays the owner distribution. Dividends are paid by corporations to their ownerns. Even though they are basically the same - payments to the owners of their share or portion of the company income - distributions when paid by a LLC to its foreign owner are not subject to US income tax or withholding tax, while dividends paid by corporations to its foreign owners are subject to a withholding tax rate of 30%, rate which can be reduced by virtue of a double tax avoidance agreement (DTAA) signed by the USA and a third party country.

 

In summary, LLCs pay their owners distributions, and not dividends, and these distributions when paid to a foreign owner are not subject to US taxes nor withholding tax.

W9 or W8Ben

LLCs do not pay their owner’s dividends, it pays the owner distribution. Dividends are paid by corporations to their ownerns. Even though they are basically the same - payments to the owners of their share or portion of the company income - distributions when paid by a LLC to its foreign owner are not subject to US income tax or withholding tax, while dividends paid by corporations to its foreign owners are subject to a withholding tax rate of 30%, rate which can be reduced by virtue of a double tax avoidance agreement (DTAA) signed by the USA and a third party country.

 

In summary, LLCs pay their owners distributions, and not dividends, and these distributions when paid to a foreign owner are not subject to US taxes nor withholding tax.

Will my LLC be anonymous?

The LLC owner information will not be found on public records as the Wyoming State Secretary website does not even request information on who the LLC owner is.

 

Nonetheless, we report to the Internal Revenue Service (IRS) and to the Financial Crimes Enforcement Network (FinCEN) -  a bureau of the United States Department of the Treasury - the name of the LLC Owner. Even though we report the owner’s information these entities, this information is not public record, it is not automatically reported to third-party countries, cannot be found online, and only your lawyer (we) and the IRS and FinCEN will know about your ownership, meaning these gonverment entities (IRS and FinCEN) would only disclose your company ownership of this third-party country knows you are under a criminal investigation in this country, and this country knows or suspects you the owner of this Wyoming LLC.

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