Company Formation for Freelancers in Wyoming

Freelancing activities are growing rapidly in the global digital economy, with more and more Greek professionals offering their services on a global scale through platforms like Fiverr, Upwork, or even independently.

One of the most effective ways to optimize a freelancer's business structure is to form a company in the United States, specifically in the state of Wyoming.

In this guide, we will analyze how forming an LLC (Limited Liability Company) in Wyoming can offer significant advantages to freelancers residing outside the US, providing them with favorable tax and operational prospects.

Who is considered a non-resident alien and when there is no corporate tax in the US

A non-resident alien is defined as any individual who is not a permanent resident of the United States and does not reside there for an extended period, according to the provisions of the US tax code. In the case of Greek freelancers, they are considered non-residents if they do not reside or work in the US.

It is important to understand that forming a company in America does not automatically entail tax obligations in the US. Specifically, for non-residents operating outside US borders, the LLC's profits are not taxed in the US, as the business is not considered to have a physical presence in the country.

Thus, a Greek freelancer can benefit from the fact that LLCs in the US are considered pass-through entities, meaning profits "pass through" to the owner and are not taxed at the company level, provided there is no physical activity in the US.

Furthermore, you can sell services worldwide, even to American entities!

The advantages of the state of Wyoming for freelancers

The state of Wyoming is known for its business-friendliness, especially for those forming companies without a physical presence in the US. Indicatively, the main benefits of forming an LLC in Wyoming are:

• Zero income tax: The state of Wyoming does not impose income taxes on companies or on profits distributed to owners. This is particularly important for a freelancer, as they can retain their profits without being taxed in the state.
• Low operating costs: The cost of maintaining an LLC in Wyoming is low compared to other states or countries. Low bureaucracy requirements and limited annual obligations make Wyoming ideal for a freelancer who wants to minimize their operating costs.
• Personal asset protection: Like all LLCs, a Wyoming LLC offers limited liability, meaning the owner's personal assets are protected in the event of legal disputes or company debts.
• Privacy: In Wyoming, public disclosure of the names of shareholders or company directors is not required. This means you can maintain your anonymity and personal security.
• Access to international clients and services: By having a US company, you gain access to various services and platforms that may be more difficult to access from other countries. These include payments via Stripe and PayPal, as well as the ability to attract international clients more easily.

Why a freelancer should form a company in Wyoming

There are many reasons why a freelancer would choose to form an LLC in Wyoming. Here are some of the key advantages:

1. Global client access: Freelancing platforms, such as Upwork and Fiverr, offer professionals the ability to serve clients worldwide. Having a US company makes it easier to manage your transactions and benefit from services accessible only through US companies.
2. Credibility and prestige: Having a company in the US can increase client trust. Many clients may prefer to work with someone who has a US presence due to the global reputation and reliable business standards of the US.
3. Flexibility in income management: A US LLC offers freelancers the ability to manage their profits with greater flexibility, while enjoying personal asset protection and zero corporate tax in the US.
4. Access to online services and tools: Many online platforms and tools are exclusively for companies with US legal status, meaning you can improve your liquidity and operational efficiency through these tools.

How to bring your income to Greece through dividend distribution

One of the main reasons many freelancers avoid forming a company abroad is concern about how they will manage their profits and repatriate them to Greece. However, with the right strategy, this process can be done legally and with minimal tax burden.

It's important to emphasize here that you must declare your total worldwide income where you are a tax resident. Failure to do so constitutes tax evasion.

The profits of an LLC company are distributed to shareholders in the form of distributions-dividends. Dividend taxation in Greece is 5%, which means transferring profits from the American company to Greece is quite economical.

Furthermore, Greek freelancers who form an LLC in Wyoming benefit from the double taxation avoidance agreement between the US and Greece, which ensures that profits taxed in Greece are not re-taxed in the US.

Process for forming an LLC in Wyoming

The process of forming an LLC in Wyoming is simple and fast, and can be completed within 12-24 hours. Here are the steps you need to follow:

1. Complete the form on the Growth Business LLC website: To get started, all you need to do is fill out the form with the required information HERE, such as the company name and your contact details.
2. Identification requirements: You must have a valid passport to form the company. If you do not have a passport, you can obtain one within 60 days.
3. Process completion: Once you submit your information, the company formation process begins and is completed within one day. Growth Business LLC handles the entire process on your behalf.

Cost of company formation and maintenance

The total cost for forming an LLC in Wyoming through Growth Business is extremely affordable, considering the benefits and protection it offers. The cost for formation and the first year of company maintenance is €1,400, which covers:

• Company formation
• All necessary documents and registered office registration
• All taxes and annual tax filings for both the state and the US tax authorities.

After the first year, the maintenance cost is just €100 per month (or €1,200 per year), covering all operational costs of the company and tax filings.

This means you don't have to look for anything else or pay anything extra.

Contact

If you are a freelancer and want to learn more about forming an LLC in Wyoming, the Growth Business team is here to help. Contact us at 210 300 0490, via live chat on our website, or fill out the form below for immediate support.