Registering a business in the USA. State Comparison Wyoming vs Delaware vs Nevada

Business in the US jurisdiction is a prestige status of your company all over the world. Access to the best banks and payment systems such as JPMorgan Chase, Bank of America, PayPal, Amazon, Apple and others. Entering the world’s largest market, combined with virtually no taxes, makes registering your business in the USA a very attractive and profitable action.

Below we will look at the TOP 3 popular states for registration.

WYOMING

Wyoming ranks first in the US Tax Foundation’s Inter-State Tax Index for 2023 and is the most attractive state due to its uniquely low taxes, even the virtual absence of them. Legislation to the maximum encourages entrepreneurs to conduct business in the state. The state guarantees a high level of business protection and anonymity. There are no requirements for residency of directors of the founders of the company. The company can be registered remotely.

Taxes in Wyoming:

• Corporate income tax – 0%
• Capital gains tax – 0%
• Franchise tax – 0%
• Sales tax – 4-6%
• Tax on dividends – 0%*
• Minimum annual tax dues – $52 (for reporting).

In Wyoming, it is allowed to register corporations with only 1 founder. Information about the founders is closed. To register a business, you do not need to obtain a general business license. Use of nominal service is allowed. No share certificate required. The state allows you to register a company in other states. Wyoming does not collect information about the company’s profits and, accordingly, does not share with the Internal Revenue Service. The founders, directors, employees and agents are insured by the charter against claims against them from third parties for the activities of the company.

An LLC’s annual return must be filed in January.

* For non-residents, tax on dividends is taxed at a rate of 30%, unless otherwise provided by international treaties

DELAWARE

The state of Delaware is ranked 16th in the Tax Foundation’s ranking of favorable tax climate, but nevertheless, the state is very popular for registering foreign companies, especially in the IT sector. This situation is primarily due to the fact that companies that do not operate in the state are not subject to income tax. Another advantage is that non-resident shareholders are not required to pay share tax. In addition, there is no sales tax in the state (Sales tax is an analogue of VAT in the CIS countries). Delaware is a flexible business jurisdiction with a predictable judiciary and entrepreneurial development. This state has well-written corporate law and the management of the company is quite simple. Also, if you plan to attract investments in your business in the future, then Delaware will be the best solution. Investors prefer to invest in companies registered in this particular state.

Taxes in Delaware:

• Corporate income tax – up to 8.7%
• Capital gains tax – 0%
• Franchise tax – $300
• Sales tax – 0%
• Tax on dividends – 0-15-20% (progressive rate)*
• Minimum annual tax dues – $300 (franchise tax)

In Delaware, it is allowed to register corporations with only 1 founder. Information about the founders is closed. You do not need to obtain a general business license. Use of nominal service is allowed. A share certificate is required. It is allowed to register a company in other states. The state collects information about the company’s profits and shares it with the Internal Revenue Service. The founders, directors, employees and agents are not insured by the charter against claims against them from third parties for the activities of the company.

An LLC’s annual return must be filed in January, and a corporation’s return in March.

* For non-residents, tax on dividends is taxed at a rate of 30%, unless otherwise provided by international treaties

NEVADA

The state of Nevada in 2023 ranks 7th in the Tax Foundation ranking. Nevada consistently ranks in the top three for a favorable tax climate. The state is considered one of the leading gambling jurisdictions worldwide. Las Vegas is located in this state and is the world’s Mecca for gamblers. Nevada is a popular place to register an online casino. There is no corporate income tax, but there is a sales tax and business licensing fees.

Taxes in Nevada:

• Corporate income tax – 0%
• Capital gains tax – 0%
• Franchise tax – 0%
• Sales tax, average – 8.23%
• Tax on dividends – 0%*

Minimum Annual Tax Fees – Business Licensing Tax of $200 for LLCs and $500 for Corporations

In Nevada, it is allowed to register corporations with only 1 founder. Information about the founders is closed. It is necessary to submit a list of company members with their current data every year starting from the date of registration. You need to get a general business license. When issuing a significant number of shares, a fee of $35,000 must be paid. Use of nominal service is allowed. A share certificate is required. It is allowed to register a company in other states. Does not collect information about the company’s profits and, accordingly, does not share with the Tax Service. The founders, directors, employees and agents are insured by the charter against claims against them from third parties for the activities of the company.

An LLC annual report must be filed immediately upon registration and a fee of $350 must be paid, and for a Corporation report – $650.

* For non-residents, tax on dividends is taxed at a rate of 30%, unless otherwise provided by international treaties

Summary: all three states represented are highly popular among entrepreneurs. Each state has its own advantages and is suitable for certain activities. When choosing a jurisdiction, it is important to consider all the nuances of the future activities of your business, therefore, to choose the most suitable state for registering a company, please contact us.