"Why Wyoming?", you might ask, when your business partner or rival first hints of their intention to hop jurisdictions.
It's not for the mountains or wind swept plains that people situate their businesses in Wyoming. Rather, these rugged conditions have created a people who are self reliant; who don't take kindly to undue interference from federal interlopers.
Wyoming is one of the few US States where the rights of the individual are prioritized over the rights of the government.
This article will quickly outline tangible reasons to base your business presence in Wyoming (even if that just means registering an LLC there), before exploring some of the legislation that has made Wyoming a uniquely situated for crypto startups.
Wyoming is cheap. Most entities require only $100 to incorporate.
The taxes are also just about the lowest you'll find in the States: "Wyoming does not assess any corporate state income tax or LLC franchise tax, and assesses an annual fee of only $50, as of December 2010, to file an annual report. Wyoming also does not assess any personal state income tax or inventory tax. Additionally, Wyoming’s sales tax is only 4 percent, with a 2 percent optional county sales tax, and also offers a sales and use tax exception for any manufacturing equipment. Wyoming’s tax burden is second lowest in the nation, according to the Wyoming Business Council."1
Wyoming also protects your identity. Only your Registered Agent needs to know who you actually are, and how to reach you. The State can only send 'legal process' there, and marketers won't be forever harrassing you as a new business owner, if you allow your incorporate to submit their details instead.
A foundation for a whole new way of conducting and transacting business is here before us, and those that are willing and able to leverage Wyoming's crypto-friendly legislation will have a leg up on other enterprises seeking to deal with crypto in the U.S..
Wyoming's legislation includes...
- Money Transmitter Law: Dealing with Virtual Currency without a license does not make you a criminal. HB 19
- Crypto is viewed as private property, and afforded those protections. Simultaneously, the state will not tax it, as described in SF 111: The “Crypto Property Tax Exemption Bill”.
- Cryptotokens are viewed as legitimate means to represent equity in your company, and a network address can be used to signal decisions being made. That is to say: your Ethereum address can be used as a shareholder's identity, as well as for voting on the company's decisions. HB 0101: The “Blockchain Fillings Bill”
- Lastly, Wyoming reognizes security tokens as being different from securities and virtual moeny like Bitcoin. Although this may not protect a business from Federal inquiries, it at least makes a favorable home court advantage for any company looking to issue tokens. HB 70
Extra Protection Wyoming provides very strong protections for an entity owner. For instance, the 'charging order' legislation is particularly valuable in the event that you get sued, even if it happens in another state like California. While the plaintiff may secure a guarantee of profits from your company, it can not force your company to be controlled by the plantiff, who might rather liquidate it rather than wait for the profits to satisfy the claim.
By keeping the Security Certificate in a lockbox, or perhaps by treating crypto-tokens as equity, these protections will insure that your business is not unfairly taken from you2.
1 -LegalZoom What Are the Advantages of an LLC in Wyoming? Salvatore Jackson https://info.legalzoom.com/advantages-llc-wyoming-3435.html 2 Safe Deposit Security For Wyoming LLCs By Garrett Sutton, Esq http://www.corporatedirect.com/asset-protection-resources/safe-deposit-security-wyoming-llcs/
Published on: 2019-11-13T02:04:05.447Z
By Tristan Roberts