C-Corporations-“For Profit” Corporations in Wyoming

by Norris Law Group on August 14, 2014

C-Corporations-“For Profit” Corporations in WyomingWyoming is widely known as a state “friendly” to business that want to set up corporations in the state. One of the most common corporations to set up in Wyoming in a C-Corporation, also known as a “for profit” corporation. The Office of the Wyoming Secretary of State explains how the state views this type of corporation in an online publication titled, “The Choice is Yours.”

The WY Secretary of State describes a C-corporation as a kind of “super-person” that may ultimately live forever, regardless of whether the founder or founders may pass away. A corporation may act as an individual as well—it may sell goods and services, sue and be sued, make purchases, own and mortgage assets, and file bankruptcy. Corporations are run by a board of directors that is ultimately responsible to the shareholders.

Advantages of a C-Corporation in Wyoming

  • Liability is limited (shareholders, officers or directors may not be held liable for corporate debts unless any corporate law was broken)
  • Financing options abound, including selling common or preferred stock, issuing bonds, loans, or mortgages
  • Corporation may exist forever so long as corporate laws are followed; doesn’t have to disband if owner dies
  • Assets “may be sold, transferred, pledged, or mortgaged,” making ownership transfer easy
  • Board of directors controls all activity, providing central management

Disadvantages of a C-Corporation in Wyoming

  • Expensive; attorneys and accountants are needed.
  • Heavy tax liability, including required payment of unemployment taxes and “double taxation” in which “corporate profits are taxed at the entity level and are returned to investors as dividends to be taxed again as individual income”
  • May be subject to securities regulations
  • Regular meetings, filings and reports are required
  • Ownership may be divested through stock sales
  • Decision-making can be very slow, and directors may deadlock.

If you want to set up a C-Corporation/”For Profit” Corporation in Wyoming, speak with a skilled attorney with experience in Wyoming business law.

Attorney Graham Norris and his associates at the Norris Law Group serve the residents of Utah County, UT and throughout Utah, Wyoming and Idaho. Contact them today at 801-932-1238 or online for a free consultation.

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