For many years, there has been an attempt by some in the state of Wyoming to promote Wyoming as a viable competitor to Nevada as a favorable incorporation jurisdiction for closely-held companies. In fact, Corporate Service Center opened a subsidiary in Cheyenne, Wyoming in 1993, and became the first incorporation company to promote and specialize in Wyoming company formation.
We learned from our many experiences in Wyoming that Wyoming simply does not - and, in our opinion, will not in the future - offer incorporation benefits that meet or exceed those that Nevada already provides. The current Wyoming Secretary of State does not favor promoting Wyoming as an incorporation center, and the Wyoming Bar Association is opposed to an in-state incorporation industry. As a result of our experiences in Wyoming, Corporate Service Center of Wyoming was closed after 11 years of operation, and many of the Wyoming clients were re-domesticated into Nevada.
Nevertheless, one Wyoming incorporation firm (
www.wyomingcompany.com) actively promotes a comparison of Wyoming and Nevada, listing the following advantages in favor of Wyoming incorporation (quoting from their website):
1. No state income taxes
2. No information collected to be shared with the IRS
3. Privacy allowed
4. Shareholders are not listed with the State
5. Best asset protection laws
6. Nominee officers are legal
7. Citizenship not required
8. State tax not being considered
9. Wyoming draws little attention
10. No Nevada “stigma”
11. Lower startup costs
The purpose of this paper is to analyze these claims and compare the actual strengths and benefits of Nevada versus Wyoming incorporation.
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