Learn more about the difference between Wyoming and Florida LLCs.
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Starting an LLC in either Wyoming or Florida can bring great success for any entrepreneur. Other things, like your industry and specific location in either state, can also increase your chances of being a successful business owner.
If you aren’t sure which of the two states is best for you and your business idea, then check out the information below that will offer information about LLC ownership. From there, you can decide which state to call home for your business.
Before making any sort of business decision (especially when money is involved), you’ll have to weigh the pros and cons. Below, we’ll go over a few of the two for a Wyoming LLC.
Let’s first go over the pros of starting and owning a Wyoming LLC.
Wyoming is one of many states that doesn’t require LLCs to draft an Operating Agreement. This can save you time and money. However, one should still be considered since they further legitimize the business, thereby adding an extra layer of protection.
Speaking of liability protection, the LLC business structure is a favorite among entrepreneurs because it offers this protection for its members. This means that the members cannot be held personally liable for the actions of and any debts incurred by the business. Keep in mind, though, that your business’s validity can be challenged in court, and an Operating Agreement can help prevent this.
Wyoming does not have a state income tax, one of the few states in the nation with this benefit. This can be great for your business’s financials. Wyoming LLC’s also have “pass-through” taxation.
Wyoming is known for its strict privacy laws for LLCs. You can forgo filing identifying information with the state, like the names of the members, among other things. However, this doesn’t mean you can run the business freely without following the state’s laws.
LLCs can continue operating if its owner dies, leaves, etc. as long as such a situation is addressed in the Articles of Organization. The articles can also list if the company should be dissolved if said situation occurs.
Next, let’s go over the cons of starting/owning an LLC in Wyoming.
Earlier we mentioned that Wyoming LLCs have a high level of privacy for members. Keep in mind, though, that this privacy is not 100% guaranteed. The members must provide their information to their registered agent. The state can then request this information from this agent. This information does, however, remain hidden from the public.
This should go without saying, but if any of the Wyoming LLC’s members reside outside of the state, then they may have to deal with additional costs, like registering the Wyoming LLC in their own state as a foreign LLC. This will incur additional fees, and filing fees and annual fees will have to be paid for both states.
Let’s go over the pros and cons for a Florida LLC below.
You’ll notice that the pros listed for a Wyoming LLC are similar for a Florida LLC as well, only because the overall pros for LLCs across all states are relatively the same. We’ll highlight them anyway.
Like a Wyoming LLC, a Florida LLC also offers liability protection for its members. However, as we mentioned earlier, the LLC’s validity might be challenged if it faces legal issues. An Operating Agreement can help with this.
Florida LLCs enjoy pass-through taxation as well. This can ease your financial worries come tax season since you won’t be taxed twice at the business level and the personal level. You’ll only have to pay the business’s taxes through your personal tax return.
LLCs are known for being credible business entities. This makes your business look good to the public as well as financial institutions should you ever need to take out a business loan. An Operating Agreement also adds an additional level of credibility.
Florida LLC owners are granted a high level of flexibility to run the business how they see fit. You’ll be free to structure the business’s management and ownership however you’d like. Keep in mind, though, that your business cannot operate outside of the law.
Like Wyoming, Florida also doesn’t require LLCs to draft an Operating Agreement. However, the pros of having one outweigh the disadvantages, so consider putting one together anyway.
Below, you’ll find some cons of starting/owning an LLC in Florida.
The state of Florida does not issue state-wide business licenses. However, they are issued at the county level where they’re called “business tax receipts.” These receipts will incur a fee, but the good news is that not all counties require them. Be sure to check with your county to see if you’ll need one.
If the LLC’s member(s) die, leave, are expelled, etc., then the company may be dissolved depending on how the situation should be handled as detailed in the Operating Agreement. The good news is that the agreement can also list who will lead the company under the same circumstances.
Tax benefits are something all entrepreneurs should look into to determine which business type and location will be most beneficial. Here are the taxes for Wyoming LLCs and Florida LLCs.
Reach out to a tax professional for more tax-related information for Wyoming and Florida.
If you’ve already decided which state you want to register your LLC, then we can help. We have full, detailed articles that walk you through the process. Read up on starting an LLC in Wyoming or starting an LLC in Florida.
We can also help you with other services like reserving a business name, getting a registered agent, and obtaining an EIN.
Business ownership is a great thing, and there’s nothing we love seeing more than an LLC flourishing, no matter which state it’s in. We offer many services to start a business as well as additional ones to help you run and grow your business in all 50 states and Washington, D.C. Get started today.
Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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