Here are some advantages in deciding whether Wyoming or Delaware, which state is beneficial to form a Corporation in the US.
There are many advantages to forming a Wyoming C-Corp -
No state income tax: Wyoming is one of only nine states in the US with no state income tax. This means that C-corporations formed in Wyoming will not have to pay any state income tax on their profits.
Asset protection: C-corporations provide their shareholders with limited liability protection, meaning that the shareholders' personal assets are protected in the event of a lawsuit against the corporation. Wyoming has some of the strongest asset protection laws in the country, making it a good choice for businesses that are looking to protect their assets.
Privacy: Wyoming has some of the strictest privacy laws in the country, which can be beneficial for businesses that want to keep their ownership and financial information private.
Flexibility: C-corporations are the most flexible type of business entity in the US. They can have any number of shareholders and can raise capital through stock offerings. This makes them a good choice for businesses that are looking to grow and raise money from investors.
There are many advantages to forming a Delaware C-Corp -
One of the main reasons to incorporate in Delaware is the legal and liability protection of established corporate laws. These protections are simply incomparable to what is offered by any other state in the nation, which makes it the Incorporation Capital of the World.
The Delaware Court of Chancery is the oldest business court in America, uses judges instead of juries (which speeds up legal proceedings considerably), and maintains the most advanced and up-to-date case law, which corporate lawyers in Delaware rely on and refer to. This means that Delaware LLCs and corporation owners/shareholders will have decreased liability and litigation.
Another reason why companies incorporate in Delaware is the incomparable tax savings. There is no state income tax for Delaware corporations that conduct business out of state; no inheritance tax on stock held by non-Delaware residents; no state sales tax on intangible personal property (such as royalty payments); and shares of stock owned by non-resident aliens are not subject to Delaware taxes.
In addition, Delaware corporations not operating in Delaware do not need to acquire a business license in Delaware.
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