LLCs in Wyoming for Asset Protection

[Marisa Alvarez]

I have been offered ( by a CPA and Legal Buffet ) a reestructuring of my business with LLCs in Wyoming as they apparently offer the best asset protection as you can have a Nominee manager

The scheme sounded great but at the end of the day I would be tied to that cpa /accounting studio as I will always need an adress in Wyoming and the Nominee Manager that steps in an out every year.

Has anyone here been offered the same and what were your thoughts about it ?

[Clint Coons]

The benefit of the WY LLC is it allows for the setup of your state-specific LLCs with anonymity. Yes, WY does provide strong charging order protections versus a state like Florida that does not offer any protections for single-member LLCs. I would not undervalue the benefit of privacy. Many lawsuits are just shakedowns designed to intimidate deep pockets defendants into paying to make the case go away. I know some people argue against structuring in favor of insurance, but many real estate related lawsuits are not covered by insurance, so you are left to defend yourself. Keeping your ownership of business entities off the secretary of state's database helps discourage the shakedown lawsuit. I have structured many people with this type of setup, and it served them well when the lawsuit hit. The approach I take is my business is my business, and the public does not have any interest in knowing how many entities or properties I own. Second, you mention that you must use a nominee manager that steps in and out on an annual basis. This is not required for WY or DE, only Nevada. Wyoming does not ask for either the members or the manager's information on the initial or annual filing. My firm establishes 1000 or more WY LLCs every year, so I am well versed in their setup. A few last points to consider:

Anonymity is not appropriate in all circumstances, I.e., I would not use it if you are running an active business

Anonymity is just a smokescreen; if a creditor sues, wins, obtains a judgment and drags you into a debtor examine, you will lose the smokescreen which is why you need the LLCs

Once an entity is set up with your name (manager or member), then you can not unring the bell which is why if you want the anonymity you should set up the WY LLC before you create any other LLCs