Wyoming is a superior state for a holding company. It has excellent asset protection laws, privacy, low start-up and maintenance costs and there are no state income taxes.
Wyoming is one of the few states that offers charging order protection to single member LLCs. The Secretary of State does not publish company ownership records, which means company owners names are anonymous.
Wyoming has low fees, with a $100 charge for LLC formation and a $50 annual report fee. The subsidiary local state LLC’s can be taxed as a disregarded entity, so all rental income flows back to the holding company, with only one tax return needing to be filed. The Wyoming holding company can be a C Corp, S Corp or LLC. Investors should consult their CPA to decide on the best choice for their circumstances.
Investors generally put 2-3 properties, or a maximum of one million dollars in value into one LLC. Each property needs to be transferred into the local LLC. This requires having a new deed recorded with the County Recorder’s office. A Warranty Deed is the preferred option over a Quitclaim Deed because it maintains a strong chain of title.
The first step in this process is seeking permission from your lender to transfer the property to the LLC. Do not transfer without first obtaining written permission otherwise the lender can invoke the due on sale clause and call the entire note due immediately.
There are a number of advanced asset protection strategies available to investors. We are not an asset protection law firm and cannot recommend the structure which is best for your circumstances. Athena Property Services LLC only offers document preparation for one of the more popular asset protection methods.
Our service includes setup of the Wyoming Holding Company and Wyoming Registered Agent, setup of one subsidiary LLC and deeding of one property into the state local LLC. Our fee for this service is $500, excluding state, county and registered agent fees.
For additional LLC and registered agent setup, we charge $100 excluding state and agent fees. We charge $200 for each additional deed transfer, excluding county recorder fees.