November 17, 2019
The Truth about Wyoming LLCs | Mark J Kohler | Tax & Legal Tip

The Truth about Wyoming LLCs | Mark J Kohler | Tax & Legal Tip


Hi Mark Kohler here with another tax and legal tip I want to talk about the wyoming corporation or lLC now these are awesome for asset protection But they’re also oversold so I want to break down some of the good a little bit of the bad And then tell you where I really like to use the wyoming in it Okay, the first benefit of a Wyoming entity is the Cope protection now What cope stands for is charging order Protection entity now? I whole chapter on my book on Cope entities But there’s only about 13 to 15 states around the country that have this type of protection let me tell you what it is if you set up a LlC for your rental property and something goes wrong and Your tenants licken the mold off the wall or they fall down the stairs You know because of you know termites or something can they sue you personally? Oh, you’re protected That’s the beauty of the lLc. If there’s a problem inside the lLC. You’re protected, but you but what happens if you are at a lawsuit heaven Forbid Texting and driving and someone comes after you can they bust into your lLC and take away your rental in most states they can But with the charging order protection entity but gee there’s outside protection They can’t get into the lLC and take away your rental your rental is Protected with this coat protection a judge will only give a charging order That any money that comes out goes to the creditor. That’s the charging order protection. They can’t get the asset They only get money if money comes out and are you ever gonna distribute money you’re not well? why don’t mean is one of these entities, and they give charging order protection if it is a Single-Member, LLC, and that’s the only state in the country right now. That’s awesome So wyoming entities are great for this quote protection the second benefit of a Wyoming entity is privacy Because if you ask me to set up your wyoming LLC I can set it up as the incorporator at the law firm I can even use our mail forwarding address service So your address doesn’t show up anyway. This is pretty cool So your name doesn’t pop up on public record in wyoming for at least a year At the one-year mark you have to disclose who the manager of the is of the lLC is but not for a whole year That’s huge for privacy protection Third benefit of the Llc is they’re affordable now I’m gonna come back to the oversell issue in a minute, but you can set up a wyoming lLC for a hundred bucks we can be your registered agent wyoming for 125 and we can be your mail forwarding for up to three companies for 150 bucks a year so the filing fees are with all that you’re still under three or four hundred bucks and then the annual fee With the state is either 50 or a hundred bucks depending on your sale So the LLc can be really affordable in wyoming for its initial setup and maintenance a lot cheaper than Nevada which is again Oversold as well Now the problem with the wyoming entity is they’re oversold too many people get sold into this wyoming entity when they’re not even doing Business in Wyoming, so they got rentals in Georgia, and they’re like mark. I need a wyoming entity and I’m like okay now I’ve got a registered, Wyoming and Georgia, and if they’re just getting started and they don’t have a lot of equity in their property They’re paying for two states And it’s just too cost that that brand new investor really doesn’t need But they’re oversold again and everybody at every little workshop out there that thinks through a real estate Legal guru even though they’re not lawyers or they’re over selling this and it’s too expensive Watch out be careful on overdoing it with a wyoming enemy. So finally let me show you my master diagram here Here’s where I love the wyoming in it So real quick a lot of times you might have one lLC with multiple properties in it you might have two or three LlC’s with multiple properties But you have barriers between each one and then you might even have let’s make my picture here Or you might even have a series LLC with little baby subs but you can only do that in a few states So the series LLC doesn’t work for everybody, but when I have a client with a lot of assets We’ll set up a Wyoming energy And then have baby LlC’s in multiple states for their other rentals Now I get the cope protection of Wyoming and then I get the protection of the LLc’s in these multiple states This could be Arizona. This is Nebraska This is California, and then we’ve got Jordan so we got multiple states, but it’s one tax return One LLC, and you’re getting charging order, Protection, Wyoming But I only do this if I have clients with a lot of assets and a lot of rental properties Now you could probably see why I named this a tax and legal tip and not a 2-minute tip because I sometimes get carried away Anyway in Summary asset protections for real and it can work, but make sure you have enough passives before you think about this Wyoming thing folks. Don’t give up on your American dream Hey, thanks for watching and if you found that information helpful Please click below subscribe to the channel every time I shoot a new video You’ll get a ping also check out my new ebook the top 10 pack strategies everyone should know new this year 2016 you’re gonna love it and Finally check out my social media links if you’re into social Media I got daily posts and all sorts of little fun tips and strategies that come out Highlight in my radio show every week as well, please check it out And I’ll be there for you as we both try to better live the American dream. Thanks you

37 thoughts on “The Truth about Wyoming LLCs | Mark J Kohler | Tax & Legal Tip

  1. At 1:40 you say "Are you ever going to distribute money? No."… does this mean you simply can't pay yourself but you can pay the expenses of the LLC? Ex) property taxes, mortgage, insurance, etc., are all still paid but perhaps you aren't paying yourself?

  2. Thanks Mark! I love your ability to take complex situations and make them really straight forward and easy to get! Your final example on how to use the WY LLC to protect geo-diversified assets is brilliant. Love it!

  3. 2:15 – not on public record for at least a year — so what do you do at the end of the year if you still want to remain off record?

  4. Hi Mark, I own 3 separate rental LLC in NV, AZ, TX. I would have a WY LLC to own the other 3, I live in CA, how many CA $800 franchise fee would I have to pay? 1 or 4? Thanks

  5. Hi Mark- As I build out my real estate portfolio, and add LLCs, can I add the Wyoming Holding LLC later when I'm ready, or does it makes sense ($$) to do it now? I currently have 1 LLC with 2 properties in it. Thanks!!

  6. IM BUYING A PROPETTY IN CALIFORNIA. WILL PUTTING THE TITLE UNDER A WYOMING LLC PROTECT IT FROM THE STATE PUTTING A LIEN ON IT FOR MY STATE INCOME TAXES?

  7. What if you are a non U.S. citizen with a virtual ecommerce business. How would Wyoming LLC be better compared to say Delaware?

  8. At about 3:00… If the WY LLC owns a GA LLC, wouldn't you just need to register the GA LLC in GA? It seems to me the additional cost of run 2 LLCs this way would just be the roughly 400-500 year (your setups, mail forward and services, WY fees, etc). Seems pretty reasonable cost to me, even for a new investor. Another good but short video; Thanks!

  9. Haven't started anything yet, but from I heard it is better to start a wyoming first then your state llc, if you do your local llc it becomes more difficult to do it under a wyoming. I'm just doing some research before I begin

  10. It is my understanding that Arizona offers the same charging order protection to single and multi-member LLC's as Wyoming. Is this correct?

  11. How do it work say if you have a physical store front in California yet your LLC is in Wyoming and you have never even been to wyoming

  12. Hi Mark. Just saw your video. Very informative.
    QUESTION: Can you set up a Manager WY LLC to collect lottery winnings in any state? If so how would it work?

  13. Hi, do you have a video on how to properly open a business bank account without giving your personal info?As some banks are now requiring SS# to open an account or make deposits.

  14. What are you talkin about reveal the manager I've been researching and talking to lawyers and companies about the Wyoming LLC for a month not once has anybody said you have to reveal the manager.

  15. What if you are not going into real estate just yet. I want to setup a holdings company we are looking to purchase our first business in the next year or less. I would like to have the company setup before our purchase so I can purchase through the holding company and not myself.

  16. So if I get a WY LLC will I have to register as a foreign LLC every time I want to put an LLC under my WY LLC?

  17. Question,
    I have my domestic llc in Wyoming and a foreign in New Jersey. Do I need to file a state income tax in Wyoming ontop of NJ?

  18. Hi. Really good information, When starting out and you grow over time with rental property in multiple states, how hard and expensive is it to retrofit the individual state LLC under the WY holding LLC?

  19. Will this be a good option for any Amazon FBA seller? Since I see people online talking about getting an LLC in WY if you're a FBA seller.

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