Wyoming and Delaware Registries Experiencing Filing Delays

Wyoming and Delaware continue to be attractive places to set up an LLC or Corporation, through a combination of privacy and low filing fees.

However, if you’re in a hurry, you may find either state somewhat frustrating right now. Budget cuts, staff shortages and a high volume of filings have left wait times moving up from 5-10 business days, to 3-4 weeks or more, depending on what documentation is being filed.

Recently, we’ve seen Wyoming take up to 3 weeks to process Articles for new LLCs. And, because the state is one of the few that insists on original signatures on all documents, there is no ability to file either online or via fax. You must deliver original documents, either by mail or courier. Plus, the state has no expedited processing service to jump you to the head of the line. Once those documents are submitted they’re in the same processing pile as everything else. We’ve seen similar delays in Delaware, although the state does offer a fee-based service to speed up filings.

If you’re looking to form a structure fast, in a tax-neutral state, then in our opinion, Nevada wins, hands-down. Nevada recently instituted an online filing system, meaning that you can create a new structure in real-time, over the Internet, and immediately receive your filed documents. The service also includes immediate certified copies, which are often require to either open a bank account in another state or Canada, or to register your new Nevada company to do business in another state. We’re able to get fully formed companies, complete with IRS Tax ID numbers, out to our clients in as little as 24 hours.

It’s true that Nevada’s creation and maintenance fees are higher than Wyoming, but they’re very comparable to Delaware, once you factor in Delaware’s franchise tax on business entities. If speed is a factor, Nevada is your best way to go.

There are many variables when you’re structuring a business. That’s why it’s hard to go through a quick-service website. Unless you talk to someone who’s got some knowledge and experience on both the tax and the legal side, it’s hard to know what you don’t know. And that can leave you vulnerable.

Got questions? Contact us! We’re here for you.

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