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Wyoming, Delaware, And Nevada Shelf Companies, And The Issues

We sold Wyoming companies since 2003.  The Wyoming LLC is best for building an online business whereby building business credit is not a priority.  The Wyoming company is not the best vehicle for building business credit for a variety of reasons:

  • You won’t be considered the first and original owner of the company. When searching for a company name online at the Wyoming Secretary of State, you may find a “history” tab.  That resource will enable anyone to see the previous filings of the company and the previous officers.  For this reason, others will see who the manager of the LLC or the corporate officer of the corporation was.

  • Wyoming has earned the reputation of forming many aged shelf companies.

  • You won’t be able to operate from Wyoming and build business credit. Wyoming has a clean reputation for online business.  This also means that the Wyoming company shines involving online transactions when operated from Wyoming.  When building business credit, the company must be filed as a foreign entity in the same state as the owner.  Many owners of Wyoming entities are outside Wyoming.

  • If you’re into trucking and logistics, Wyoming isn’t the best choice. You and your truck must be present to register in Wyoming.  With a Montana company, the vehicle never needs to touch the State of Montana territory.  Montana companies are funded greater than companies from Wyoming.

Business in Wyoming-shelfcompanyinfo
Business in Wyoming-shelfcompanyinfo

What about Nevada shelf companies? Annual fees are $625. No thanks!

Nevada is famous for legalized cannabis, legalized prostitution, and cash businesses involving the casino industry.  These are also cash based businesses that support many shenanigans that operate in NV.  Bankers are nervous about Nevada companies for good reason.  They’re terrified that a NV company will be used to launder money that is federally prohibited in banking.  As a result, NV companies are a hindrance to building business credit.  They attract increased scrutiny.  If you don’t live in NV, there’s no reason to sign up for these headaches.

Nevada companies are audited four times higher by the IRS than any company from another state.  The NV resident agents for years promoted that NV doesn’t have an information sharing agreement with the IRS.  This is a stupid claim based on nonsense.  NV sells their information.

NV also requires a business license at $500 annually.  The annual report for a Nevada corporation or Nevada LLC is $125.

Stop signing up for abuse in operating with a Nevada shelf company.  The cost and the headaches aren’t worth it.  Nevada also offers a history tab, so you won’t be seen as the original owner of the company.

Nevada Residents Seeking an Aged Shelf Company

If you live in Nevada, you’re better off with an aged shelf company from another state, such as New Mexico or Montana, and then file it into NV.  It looks cleaner than a Nevada born entity.

What about Delaware shelf companies? Annual franchise fees and maintenance fees are over $350.

Delaware is famous for producing many shelf companies at high prices.  Delaware also shines for taking companies public.  Their fee structure is focused on companies who seek to go public with an initial offering of stock.  Their priority for the small businessperson is minimized because of their boosted fees, higher maintenance costs, and reputation for shelf companies.

The DE Secretary of State has discriminated against registered agents in DE who file or sell aged shelf companies by delisting them from the registry of registered agents.  There’s no law against registered agents selling aged shelf companies in DE.  And yet, the DE Secretary of State has taken the extreme approach of discriminating against registered agents who do so.  This has resulted in a lower supply of aged DE shelf companies and increased prices. In the end, the DE aged shelf company isn’t an advantage when you can obtain one from another state at lower cost.  One more thing, notice how the DE Secretary of State acts to discriminate against registered agents without a law in place?  This means that the state of DE has abandoned the fundamental belief behind property rights and due process.  They find the smaller registered agents as easy targets for unfair treatment by a state body.  This is no place for a small business owner to file his company.

There’s good news.  DE offers a conversion procedure.  You can file any company, from almost anywhere in the world, and turn it into a DE company in about two weeks, for about $1000.  For example, a Florida or Ohio company can convert itself into a DE company.  DE offers this to attract business filings into their state and boost IPOs.  As an aged shelf company, this is not a good idea.  Again, DE filing fees are inflated, resulting in inflated pricing of DE shelf companies.  You can accomplish the same thing with an aged shelf company from another state such as from New Mexico, Montana, Colorado

Business in Wyoming-shelfcompanyinfo